Pa Daly (Kerry, Sinn Fein)

I move amendment No. 1:

In page 3, between lines 19 and 20, to insert the following:

“(2) To insert new subsections after subsection (4):

“(4A) The Board shall borrow to invest in projects on the basis of a prioritisation framework which encompasses—

(a) congestion softeners in areas of high congestion,

(b) security encompassing hospitals, Garda stations, water safety and wastewater treatment,

(c) basic needs encompassing residential constuction,

(d) exceptional cases of public interest,

and will exclude grid infrastructure upgrades or connections for data centres.

(4B) The Board shall, within 6 months of the commencement of this Act and annually thereafter, lay before the Houses of the Oireachtas a report detailing:

(a) the amount borrowed under section 4(4) of the Electricity (Supply) (Amendment) Act 1954;

(b) the purposes for which such borrowing was applied including a breakdown of project type;

(c) the projected borrowing required for the next year including a breakdown of project type;

(d) the impact on consumer electricity prices;

(e) the report shall be subject to review by the Oireachtas Committee on Climate, Energy and the Environment and the Oireachtas Committee of Public Accounts.

(4C) The Board shall ensure that any borrowing under this Act does not result in an increase in domestic electricity tariffs beyond inflationary adjustments, and shall publish an annual statement confirming compliance to be laid before the Houses of the Oireachtas.”.”.

Due to decades of underinvestment, our energy system is not fit for purpose. With rip-off costs and a regressive approach to financing, our electricity grid is another in a long line of Government failures. It has been plagued by critical infrastructure deficits. Millions of euro have been wasted in renewable energy every year, driving up the cost of energy. One of the current members of Government described the Government's approach in recent years as navel-gazing and sitting on their hands. It has also stopped people moving into their homes. The need for urgent action and investment in the grid is clear.

This amendment relates to a series of Acts going back to 1954. It concerns the framework that will guide the borrowing capacity of the ESB into the future.

It is, of course, the State-owned agency but it should be mandated with a focus on the common good. It will seek to safeguard against future investment in and development on the grid that may repeat the mistakes of the past, which we do not want to do. The grid needs upgrading at present and while Sinn Féin is totally in favour of increased investment in the grid, it must be done in a way that covers and supports ordinary workers and families and works for the common good of people in the State. A grid that is fit for purpose is a linchpin of many of our priorities. Of course, we want to solve the housing crisis, end the energy rip-off, bring down prices for good and create an energy market that is based on a fair funding model in which energy is treated as a public good, as I have said.

Amendment No. 1 proposes three subsections. Subsection (4A) mandates that the increased borrowing capacity of the ESB from €12 billion to €17 billion is targeted towards the public good rather than being gobbled up by data centres. The increased borrowing capacity will allow the ESB to access the capital required to fulfil the investment required in the network as outlined in the draft decision in price review 6, PR6, a final determination on which is due towards the end of this year. Grid capacity in recent years has been gobbled up by data centres and other key strategic priorities such as housing are suffering as a result. As ESB Networks itself warned against this in a recent appearance at the committee, Sinn Féin wants to ensure that the enhanced investment is targeted towards the social good rather than corporate interests. The prioritisation framework is modelled on the Dutch authority for consumers and markets, ACM, model, which refers to congestion softeners, security encompassing Garda stations, hospitals and wastewater treatment, basic needs, including residential construction, and exceptional cases of public interest. It excludes connections for data centres. They are not a priority in contrast to the priority for the need for housing.

Our amendment inserts the new subsections to include the congestion softeners in paragraphs (a), (b), (c) and (d), and proposes that within six months of the commencement of this Act a report would be laid before the Houses of the Oireachtas detailing the amount borrowed under section 4(4) of the Act of 2001, the purposes for it, the projected borrowing required for next year including a breakdown of project type and the impact on consumer electricity prices. That is vitally important in a time where we have seen the supports ripped away. Even though prices on the wholesale energy markets have been reduced by 70% over the last three years, electricity bills have increased by around the same amount. We must also ensure that borrowing under this Act does not result, as I said, in domestic electricity tariffs beyond inflationary adjustments. There should be published an annual statement confirming compliance, and that would be laid before the Houses.

Subsection (4B) enhances the transparency, accountability and oversight which, of course, is necessary. This lack of oversight was recently highlighted in the Bill's digest.

Subsection (4C), as I have said, ensures that it does not result in an increase in domestic electricity tariffs.

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