Dáil debates

Thursday, 10 November 2011

Energy (Miscellaneous Provisions) Bill 2011: Second Stage (Resumed)

 

12:00 pm

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)

As I am from the horsey county, the bit is being pulled back in the mouth occasionally.

I will raise a couple of points on the Bill and I hope the Minister might take them on board. I will speak on two points only: the energy efficiency fund and energy efficiency. I will speak on energy efficiency, not from the consumers' but from the producers' point of view. I like that an energy efficiency fund will assume the Government's responsibility for providing funding for individuals to upgrade their homes. Of most concern is that there will be a choice for energy producers, in that they can get involved with the customer by increasing his or her home or business's energy efficiency or they can provide to the fund. This makes me nervous. Just as we have a public service obligation, PSO, levy, there is a fear that the cost of the moneys provided to the energy efficiency fund by the producers will be passed on to all consumers, not just to those who will be able to upgrade their businesses or homes thanks to the fund. I hope the Minister of State is cognisant that, if energy companies decide to provide funding, it should come out of their own bottom lines instead of being passed on to consumers so that the latter are not hit twice.

The energy efficiency fund invokes thoughts of something that is under way in the UK, namely, the green deal to which Deputy Boyd Barrett referred. Under that deal, energy companies supply energy efficient products to houses and businesses and businesses and consumers pay for them over a number of years. If consumers decided to switch companies or sell their businesses or houses, what would be the consequences? If we are to take the same route and get consumers to pay for energy efficiency through their energy bills, we must consider the proposal carefully so that nothing is left behind.

I wish to refer to energy producers' energy efficiency and the PSO. I do not have many difficulties with the levy, in that it is mostly a subsidy of electricity generation via renewable energy, including wind energy, miscanthus and other organic products. However, it is also used to subsidise what is probably the most inefficient source of energy in Ireland, namely, peat. There are a number of peat power stations. Approximately 50% of the PSO levy goes towards paying for power generation through the use of peat. We all know the problems associated with peat. For example, Bord na Móna has contracted with the ESB to generate power until 2017 and many peat bogs are being closed, although none is associated with Bord na Móna. When the Minister of State comes to dealing with regulations, will he consider reducing the subsidisation of peat power stations? They are less efficient, generate a greater carbon footprint and must be subsidised by other elements of the energy sector.

I welcome most of the Bill, but I ask that the Minister of State take note of the two issues I have raised.

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