Dáil debates
Thursday, 24 May 2012
Electricity Regulation (Carbon Revenue Levy) (Amendment) Bill 2012: Second and Subsequent Stages
2:00 pm
Pat Rabbitte (Dublin South West, Labour)
I will be interested in hearing the Deputy's opinions. He is correct that it is an important area and that we have uniquely propitious wind resources. We intend to utilise that indigenous resource to the best of our abilities, consistent with the constraints imposed by the transmission system. We have engaged in discussions with the Government on the neighbouring island regarding our capacity to develop an export sector in this area. It is not an area in which we are especially hampered by the austere climate in which we must operate.
Deputy Catherine Murphy asked how the operation of the single electricity market committee governs the all-island wholesale market in accordance with the legislation introduced in 2007. This is a complex and difficult area and I would be happy to arrange a briefing for any Deputy who is interested in learning more about it. A Ladybird guide is certainly not sufficient. The challenge has been raised against the bidding rules into the market not the legislation itself and, therefore, it is not the case that the carbon levy has been wiped out.
In regard to Deputy Boyd Barrett's questions, the operation of the rebate for this purpose and from this fund only started in mid-2010. The accounts are being audited and will be published and made available to every Member of the House. I do not know the figure but I can explain the background to Deputy Boyd Barrett's question on the rebate to what he described as multinationals. The serious competitiveness issues that had arisen for the economy were particularly affecting large energy users, whether indigenous or multinational, and the Government of the day decided to provide for a temporary rebate. The regulator decided on a definition of "large energy user" based on the amount of energy used by an enterprise. The question of whether it was a transnational or indigenous company did not arise. The definition was provided by the regulator rather than through political intervention or arbitrary decision. The rebate will continue to apply until the end of September 2012. I must bear in mind that litigation is still in train in respect of the issue and the case is to be argued before the High Court. I do not think it is necessary for me to spell out why I must bear this in mind.
Deputy Ferris asked me to reply on the record to his question about LNG facilities in north County Kerry, a project which he and other Kerry Deputies have been pursuing for some time. This issue has taken up a great deal of my time. I have been immensely supportive of the project for a variety of reasons, not least to do with energy security. The Government as a whole has been supportive but it is not within the purview of any Minister to make a decision on the operation of such a facility. That decision falls to the regulator, as has been discussed in detail in meetings with stakeholders in north County Kerry and elsewhere. Unfortunately, I do not have the pleasure of listening to Radio Kerry except during a short period in August but I understand that a local councillor who has been very voluble on this issue, Mr. Finucane, was interviewed at some length yesterday on Kerry Radio and blamed me as Minister for the delay in the decision. I was surprised by his argument, which he embellished with considerable rhetoric.
Councillor Finucane was a member of a delegation that met me, the Taoiseach, and the Minister for Arts, Heritage and the Gaeltacht, Deputy Deenihan a few weeks ago. Over the course of a two hour meeting, Councillor Finucane heard why the regulator has this power by statute, why I do not have the power by statute and why I may not intervene to hinder or assist a particular project. Councillor Finucane accepted this at the meeting so I have no idea what happened to him when he got back to the kingdom, forgot everything he had learned and said the exact opposite on Radio Kerry. If it was my decision, I would have made a decision many months ago. I cannot encroach upon the responsibility of the regulator. Councillor Finucane knows this well, accepted it in the Taoiseach's office and has clearly suffered forgetfulness since then.
In answer to Deputy Martin Ferris, unfortunately the promoters of the project have lodged complaints in Brussels. The Directorate General for Competition, in particular, has sought information from the regulator. That will take time and, unfortunately, the only effect is to delay a decision by the regulator. I hope it will not delay for long because it is important we get a decision on this. It is immensely important for the region in terms of unemployment and in terms of the national interest and security of supply. I hope the regulator will not be unduly impeded by the additional imposition arising from the company's referral of this issue to Europe. I hope we can make progress.
As soon as Deputy Boyd Barrett got into his stride and got off the runway, he tore into privatisation. I am not exactly sure what that has to do with the issue that confronts us today. A number of energy companies operate in today's market and that is how the system works. After the regulator was vindicated in the High Court, one company exercised its right to appeal to the Supreme Court. As a result of the decision, this Bill is necessary.
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