Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I welcome the opportunity to respond to some of the issues raised. Before doing so, I thank all Deputies who contributed to the debate in recent days. While some speakers were critical of my Department and questioned its policies, all of them took a constructive approach and I appreciate the general support expressed for the Bill. The number of Deputies who contributed demonstrates the importance and relevance of the issue of energy. While the Bill is technical in nature and does not deal with many of the broader issues raised, it is important to have a debate on energy.

As I stated previously, the Bill has been designed to revise, consolidate, update and expand existing energy legislation in a number of specific and well defined areas. Given this intention, the Bill does not set out to revise or recast the energy regulatory framework in an all-embracing or comprehensive manner. It is perhaps worthwhile restating the three main objectives of the Bill. The first is to establish a new administrative sanctions regime for the Commission for Energy Regulation. The second is to make a change to the legal definition of the all-island wholesale electricity market, the single electricity market known as SEM. The final objective is to rename the Commission for Energy Regulation as the Commission for the Regulation of Utilities or CRU. Consideration of whether wider and more comprehensive reform is required will be addressed in the review of the legal and institutional framework for the regulation of electricity and natural gas markets, including the CER's mandate. The review is the subject of a specific commitment in the White Paper. A much broader debate will take place - I hope later this year - not only on energy but also on the climate change and climate action agenda. I hope Deputies will contribute to that debate and discuss some of the policy issues they have raised in this discussion.

The support of Members for the provisions of the Bill are welcome and I look forward to its early consideration on Committee Stage. I advise the House, as I did at the start of Second Stage, that I propose to introduce a number of amendments on Committee Stage. In this regard, I intend to introduce some further minor amendments to the Electricity Regulation Act 1999 and the Gas (Interim) (Regulation) Act 2002. I ask members of the select committee to table amendments they may have as quickly as possible to allow them to be given full and fair consideration. I am anxious to take amendments from Opposition Deputies, where possible, and will consider all amendments with an open mind. If the Deputies opposite have thoughts on what should be the title of the new utility regulator, I ask them to contact me with their views on the issue. The overall objective is to progress the Bill to the Statute Book as efficiently and collaboratively as possible and I look forward to constructive engagement in that process.

A significant number of issues were raised by Deputies. I will comment on some but not all of them, although my officials and I have taken note of each of them.

Deputy Sean Sherlock referred to the need for engagement with the buyer of the Whitegate refinery site. I am willing to do this. The Deputy asked if the Department would explore possible opportunities following the sale, which is an ongoing process. We will examine the issue. My officials have been in contact with the current owners on numerous occasions and are available to the current owners or any prospective purchaser to provide clarification in the short term.

A number of Deputies asked what implications the United Kingdom leaving the European Union would have for the energy sector. While Brexit has significant implications for it, we do not believe it will have an impact on the all-Ireland electricity market. We want a united Ireland when it comes to electricity provision, as I am sure do all Deputies. While aspects of this issue are being moved on for European regulation purposes and forthcoming directives, the all-Ireland electricity market is the subject of an agreement between Ireland and the United Kingdom. This agreement stands and will remain in place. It is our intention to try to support it every way possible. Nevertheless, certain issues will arise as a result of Brexit, one of which relates to oil reserves. Ireland is supposed to have 90 days of oil reserves available. Approximately 20% of our reserves are held in the United Kingdom and EU rules prescribe that these reserves must be held in member states. If the United Kingdom proceeds with negotiations to leave the European Union, it would mean that some of our reserves will be held outside the European Union. Issues of this nature will need to be addressed.

While no issues arise for the energy sector in the short term, challenges will arise in the medium term and we will need to clarify the position on these matters. It is in the interests of everyone on these islands and cin ontinental Europe that these islands achieve unity and a single purpose in the area of energy. Ireland is 85% dependent on energy imports, a large proportion of which are transported via the United Kingdom. The European Union as a whole is also dependent on imports from outside its borders and geopolitical issues on its eastern borders have caused problems. The current political instability in the United Kingdom will not be an issue in the medium to long term. It is important to maintain the good relationship we enjoy with the United Kingdom, which has never been stronger. My first bilateral meeting as Minister was with Lord Bourne, the UK Energy Minister. We will maintain our good relations with Britain and my officials will work closely with their colleagues in Northern Ireland and elsewhere in the United Kingdom. As recently as today, the Secretary General of my Department was in contact with his Northern Ireland counterpart and such contacts will continue. It is important for Ireland, the United Kingdom and the European Union that this connectivity is maintained.

The regulation of water services was one of the main issues raised by Deputies. This legislation does not deal with that issue but merely clarifies current law in this area.

I am a Member with personal experience of the Commission for Energy Regulation. I made two detailed submissions relating to water pricing. Some years ago I stood in the House and argued that people who received a boil water notice should not under any circumstances have to pay for water. That was rejected by the Minister standing where I am standing today. We did not get a chance to fully debate the issue. Irish Water argued that there should be a minimal discount for people if they had a boil water notice in place. In fairness, the regulator took on board a submission I made on the matter and waived the fee. Sometimes, regulators can be useful in listening to people's genuine concerns when a government is not prepared to listen.

Concerns have been raised about the potential privatisation of Irish Water. The current position has been conveniently ignored by some - I accept that some Members were not here before and I would not expect them to remember the debates. However, many Members who have articulated the issue of privatisation tend to forget that the only amendment on water accepted by the then Government from the Opposition benches was an amendment I tabled. It has led to a situation whereby no asset of Irish Water can be privatised without a public vote. That is in black and white in the legislation. Such a vote has to take place before any aspect of Irish Water can be privatised and I do not believe the people would let that happen.

Deputy Broughan mentioned the issue of fuel poverty and I am conscious of it. Many other speakers referred to the cost of energy for families. Deputy Browne spoke about the public service obligation levy. I encourage colleagues to bring representatives of the Commission for Energy Regulation before the committee and ask them to explain the PSO. The objective of the PSO is to support long-term sustainable energy on the island, the vast majority of which is renewable energy, although some of the scheme relates to peat and that arrangement will expire in the not-too-distant future. Deputy Ryan and I do not exactly agree on that point, but it is important.

Deputy Harty raised the issue of Moneypoint. We have challenges with Moneypoint as well as our peat-fired power stations in the midlands. It is true that we have to find alternative fuel sources for those power stations. However, there seems to be an impression that we could simply shut them down tomorrow morning and it would have no impact. The peat-fired power stations in the midlands employ 1,800 people directly and indirectly. Such a move would have a devastating economic impact. It is true that we have to transition, but we need to ensure a transition to a more sustainable future rather than switching off these stations overnight. Whether we like it or not, at the moment the peat-fired power stations are a secure source of electricity. In the current volatile situation we need to think long and hard about it. We have to move away from the fuel sources being used at the moment. Deputy Collins raised the question of converting Moneypoint to biomass and using local sources of biomass. To feed Moneypoint power station would require 300,000 ha of arable land. That is the equivalent of planting half the area of County Cork or, seeing as Deputy Browne is in the Chamber, every inch of County Wexford and every inch of County Carlow as well. Realistically, I do not see that as feasible. Deputy Harty asked whether I would visit Moneypoint. I am perfectly willing to do that.

Deputy Broughan raised the issue of fuel poverty. A number of speakers mentioned this one way or another, whether in the context of fuel prices or otherwise. I am conscious of this issue for several reasons. If we can improve the efficiency of homes, they will use less energy. If they use less energy, then there will be lower emissions. The cheapest barrel of oil is the one that we do not burn. There is a major impact on people's quality of life and health if we have more energy-efficient homes. That is why my Department and the HSE are piloting a warmth and well-being programme. We are going to intensively insulate and make energy-efficient 1,000 homes in west Dublin in the Walkinstown and Tallaght areas in the coming three years. This will be a pilot scheme specifically targeting people with chronic obstructive pulmonary disease. By improving ventilation and heating in homes, we believe we will see a significant fall-off in the number of people presenting to their general practitioners, requiring the facilities of the health service and presenting at accident and emergency departments. On average we will spend €20,000 per home. Not only will we be improving the quality of life and health for those people, reducing their energy consumption and the cost of their energy bills and, in that way, dealing with fuel poverty, but we will also be taking pressure off busy accident and emergency departments in those areas. It will be interesting to see how successful that is.

Deputy Broughan asked when I would officially become the Minister with responsibility for the environment. The memorandum has gone to the Attorney General's office. The responsibilities I will have as Minister for the environment run to 16 pages in the memo. As soon as it has been approved by the Attorney General's office, those responsibilities will formally transfer to me.

Deputy Kenny referred to the membership of the board of the Sustainable Energy Authority of Ireland. I put it to Deputy Kenny and everyone else that we have a good process in place. People can apply to be appointed to State boards. I encourage people, particularly women, to look to apply to State boards because we are keen to see far more women on State boards. However, my appeal does not only apply to women. Deputy Gino Kenny referred to the need for community representatives and environmental campaigners. People should apply and go through the process. I have no bias. Above all, I want good people to serve on boards. I have approximately 20 appointments to make on various State boards between now and the end of the year and I encourage people to go online to the State boards appointment service and apply.

Deputy Ryan spoke about becoming a world leader in demand management. We need to consider new ways. I may not always agree with Deputy Ryan but his heart is in the right place and he is right to put me under pressure. That is his job and the job of everyone else in the House. There is considerable merit in everything that he has said and we should take on board his suggestion.

Deputy Murphy spoke about dealing with issues such as renewable energy sensitively. It has not been dealt with sensitively. Deputy Byrne referred to the lack of guidelines for wind farms and solar farms and associated public concerns.

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