Eamon Ryan (Dublin South, Green Party)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

recognises:

the global energy challenges faced by all countries in providing a competitive, secure and sustainable energy supply;

that Ireland faces particular acute challenges as an island nation on the periphery of the EU, which has a 90% energy import dependency and limited indigenous fossil fuel resources;

that global fossil fuel prices, especially for natural gas, are the single largest cost component in determining electricity prices in Ireland;

that the analysis published in January 2009, by the Commission for Energy Regulation (CER) shows how meeting the Government's long-term renewable electricity targets will put downward pressure on energy prices;

that Ireland has developed a robust energy regulatory framework, which is bringing new entrants into a competitive electricity market and will also serve to help lower energy prices;

the actions taken by the CER and the ESB to cushion the impact on consumers of continuing volatility in international fuel prices; these actions included the adoption of a two-phase approach to tariffs in 2008 and the unprecedented rebate of almost €400 million from the ESB for the benefit of all electricity customers;

that the recently falling market price of gas and coal was integrated into the CER tariff decision effective from 1st January 2009, resulting in a small average reduction in electricity prices; and

that most large energy users are already offered fuel variation tariffs which track either natural gas prices or single electricity market prices and have therefore experienced significant recent reductions in electricity prices;

commends the Government for:

its commitment to accelerated delivery on its energy policy priorities, including ongoing investment in energy infrastructure, ambitious targets for renewable energy to ensure diversity, a radical improvement in energy efficiency, and the continued focus on ensuring a competitive, transparent energy market which works for consumers;

tasking the CER to immediately review options for a possible early reduction in electricity and gas prices for businesses and domestic customers;

its prioritisation of electricity interconnection and grid development including the East-West Interconnector and the inclusion of the Interconnector in the list of projects under the proposed EU Economic recovery package;

its committed work in Europe in support of an open EU energy market ensuring that Ireland's energy policy interests are protected and reflected in EU energy policy developments;

its work in partnership with the NI authorities on the development of an all-island single electricity market and common arrangements for gas;

its commitment to begin an equitable and transparent process involving all stakeholders to transfer the electricity transmission assets from ESB to EirGrid, the independent State owned Transmission System Operator;

its provision in the Finance Act 2008 of energy efficiency tax incentives which were significantly expanded this year, its provision of significant budgets for the Home Energy Savings Scheme and Warmer Homes programmes, and a range of energy efficiency programmes for large industry users, SMEs and the public sector; and

continuing its range of policy measures that will provide job creation, investment opportunities and more competitive energy supplies for the wider economy."

I propose to share time with the Minister of State at the Department of Communications, Energy and Natural Resources, Deputy Seán Power. I welcome the opportunity to have this debate on a crucial issue for the economic development of our country. I was taken with Deputy Connaughton's point that we must get ourselves out of the current economic crisis through enterprise and exports. We have a young population with skills which can be used to trade, produce, grow and export. This is fundamentally the only route out of our current economic difficulty.

My Department and the Government will do all in our power to ensure Ireland is competitive. In energy and communications, the areas for which my Department has responsibility, infrastructure and competitiveness are crucial. We must approach energy policy cleverly and in the proper manner. When one considers who are the leading thinkers in this area and what are the best plans and strategies, the central point to emerge is that one must try to balance three competing but mutually reinforcing objectives, namely, to have a competitive, secure and clean energy supply. One must balance policy decisions to ensure one meets all three objectives. I want to show that in doing so, we will bring down prices and make Ireland one of the most competitive, effective, secure and clean energy countries in the world.

According to the latest figures available to us, which are for the first half of 2008, energy prices here are roughly 8% above the European average. There are a number of different reasons for this. Key among them is our reliance on imported fossil fuels. The percentage of imported fossil fuels, particularly gas, on which we rely for electricity generation is much higher than in other countries. This reliance left us exposed when fossil fuel prices were rocketing, although they have declined recently. Oil prices are not the issue at stake in the context of the motion because oil accounts for only 1% of power generation here. As such the decline in the price of oil to approximately $40 per barrel is not relevant.

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