Eamon Ryan (Dublin South, Green Party)

I move amendment No. 2:

In page 4, between lines 5 and 6, to insert the following:

" 'CADA' has the same meaning as in the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002 (S.I. No. 217 of 2002) (as amended by the Electricity Regulation Act 1999 (Public Service Obligations) (Amendment) (No. 2) Order 2007 (S.I. No. 583 of 2007));".

I stated on Committee Stage that I had asked my officials to conduct a detailed review of all ongoing public service obligation contracts to confirm that no generator is benefiting from the commission decision on carbon costs. Following this investigation, it has become clear that two electricity generators which are covered by the public service obligation have the opportunity to benefit to a small degree from the SEM committee decision requiring generators to pass through the opportunity cost of carbon.

These two generators are Aughinish Alumina and Tynagh. These two generators will benefit if they sell a small proportion of their output outside the PSO scheme. They are thus earning carbon windfall gains on this small portion of their output as it is sold directly into the wholesale market and the generators receive the market price for it, which includes the opportunity cost of carbon.

To deal with this position I propose limiting the exemption for PSO plant. Any output which is sold by companies into the market and is outside the scope of the capacity and differences agreements, or CADA,with the ESB will now be subject to the levy.

The amendments I propose require these generators to report to the CER any emissions which are attributable to that portion of their electricity on which they are earning windfall gains. They will be liable to the carbon levy on that basis. The CER also retains its powers to request any supporting information it requires from generators to verify these figures, and it remains a criminal offence to provide false information to the CER. In practice, the two companies' levies liabilities are likely to be very small since the vast majority of their output in both cases is subject to the CADA contract.

I stated at the outset of the legislative process that my goal was a fully transparent levy that recovers carbon windfall gains while treating generators equitably. These amendments ensure that no emissions producing generators benefiting from the same committee decision requiring them to pass through their opportunity cost of carbon to the wholesale electricity market are exempt. As such, I propose that amendments Nos. 2, 3, 7, 9, 14 and 15 be agreed. The acceptance of this amendment will have the effect of nullifying Deputy Coveney's amendment No. 8.

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