Darren O'Rourke (Meath East, Sinn Fein) | Oireachtas source

I thank Solidarity-People Before Profit for tabling this motion. It gives us an opportunity to highlight how broken our electricity system is and how the privatisation and marketisation of it has failed our citizens. The failures of energy liberalisation are now widely accepted, but often not in the corridors are power. These failures are exemplified by the decline in the social value, affordability and security of our energy resources following the privatisation of our energy system. The ESB, our principal State-owned energy company, was instrumental in building that system while maintaining energy affordability. Moreover, the extent of the ESB's market share ensured the profits from energy generation in the State were heavily invested in public services for the population. Throughout the liberalisation programme, the ESB went from owning and operating 96% of the installed generation capacity in 2001 to 51%. It now holds a mere 33% share of generation in the all-island market. The systematic sell-off of our national assets was presented as an EU requirement and a means of developing more affordable electricity, neither of which was remotely true.

The pace and scale of this State’s privatisation agenda was unmatched by our European counterparts. The market share of France’s state-owned EDF reduced by a mere 6% to 83% while Sweden increased the market share of its largest generator by more than 20%. In the same timeframe, we went from having among the lowest electricity prices in Europe to the highest. Between 2000 and 2020, household electricity prices, excluding taxes and levies, increased by 274%. Additionally, the market share transfer from the State to the private sector has meant more profits from energy generation have flown into corporate dividends instead of public services and critical infrastructure.

Sinn Féin recognises that the ESB and other State bodies are central to our economic, social and environmental goals. In 2011, our finance spokesperson, Deputy Doherty, tabled a motion rejecting the privatisation of the ESB and recognising its importance to the future security and prosperity of the economy and society and to the environmental protection of the island. Unfortunately, it was not accepted and at great public cost. While we cannot turn back time, the energy transition presents an opportunity to rewire our energy system fundamentally into a more prosperous and democratic one that serves the common good.

We should not be surprised by the Minister's amendment. It is from a Government which has opposed market reforms and actively supported the current market system for an extended period. When all and sundry recognised the failures of the market, the Government, supported keenly by the Green Party, ensured reform was delayed and argued against it. As recently as August of this year, the Minister for Finance said the decoupling of gas from electricity prices would undermine investment in renewable energy and our energy transition. Of course he meant it would undermine the private profits of companies on which the Government’s idea of energy transition is fundamentally built.

We have great State agencies, such as the ESB, Coillte and Bord na Móna, which are in a position, if empowered, to lead our energy transformation. Sinn Féin has set out a suite of proposals to empower those agencies to do that but they are not in a position to do it because of the Government’s commitment to the market. Over the years it has driven up energy prices and created false economies at the expense of consumers. The Government has a proven track record of supporting a false system and needs to reverse that.

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