Seanad debates

Friday, 1 July 2005

10:30 am

Michael Finucane (Fine Gael)

I raised previously in the House the issue of the escalating cost of electricity. Last year charges increased by 13%. Last Tuesday, the energy regulator came before the Joint Committee on Communications, Marine and Natural Resources. He outlined the difficulties with regard to the cost of inputs and fuels. While he refuted a statement in a recent newspaper report that electricity charges could increase by 36%, he would give no definitive response on what the likely increase will be, except to state it would probably increase in September next. The Dáil and Seanad will be in recess at that time and will not be able to give the reaction that might be anticipated on this matter.

It is a serious situation. There is a public service obligation in all electricity legislation yet the input from peat is now only 5% of all the fuels used. The regulator stated the public service obligation is anti-competitive. If this is the case, the Minister should at the stroke of a pen delete it from the legislation and the ordinary consumer should not have to pay for it.

I am critical of the regulator and the Department in regard to alternative energy. There are many announcements concerning wind energy but there is too much wind on the issue. We know the megawatt capacity and we know that a multiplicity of projects are waiting for approval. As I pointed out to the regulator, a terrible situation exists where people are making planning applications to local authorities, which I can guarantee will never be approved. At this stage someone has not quantified the situation, stated that the figure will be 13.5% and that there is already a certain capacity in place if these applications are accepted. People are being put to considerable expense in framing proposals to planning authorities. I asked the energy regulator if he would collaborate with the Department on a report on the status of the situation. Let us not deceive people making applications in good faith and remove this unnecessary expense. It does not take a rocket scientist for the regulator's office to employ 40 people to do a report and tell us when we have reached capacity and when applications can no longer be accepted. The situation is totally unfair and deceptive.

I ask the Minister for Communications, Marine and Natural Resources to come to the House when we resume in September to speak on energy policy. I wish to ask him many questions.

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