Dáil debates

Tuesday, 22 June 2010

Electricity Regulation (Amendment) (Carbon Revenue Levy) Bill 2010: Report and Final Stages

 

5:00 am

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)

Having considered the matter, I do not propose to accept the amendment. The levy has been constructed with a need to confirm with existing legislation constrains foremost in mind. My Department has received legal advice on the legislation from the Office of the Attorney General. We are confident that the levy in its current form is compatible with European law on emissions trading generally.

As I have already stated on Committee Stage, to the extent that the imposition of the levy could breach EU law, it does not make that levy immune to any legal issues that may arise vis-À-vis its interaction with EU law. Since it does not serve a useful purpose in this regard, I do not propose to accept the amendment.

I refer to the second point made by Deputy McManus with regard to the interaction of the North and the South and the single electricity market. This is something we must take into account in many decisions we make. Different conditions exist in the North and South in a variety of different ways, including different tax rates, support mechanisms and regulatory differences. The single electricity market operates while recognising the two different regimes which often operate different commercial, contracting tax or regulatory arrangements. The market operates effectively and I believe this legislation will not impede that.

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