Terry Leyden (Fianna Fail)

I welcome legislation that will help improve the rights of the consumer. This Bill legislates for a single electricity market on the island of Ireland and anticipates that the consequence of this will be a greater sharing of resources, more competition and ultimately a drop in prices. The basis for this Bill has been in place since 2000 and this legislation will formalise it. The Leader of the House was previously involved in the drafting of the legislation. Prior to the Good Friday Agreement and cross-Border co-operation, this would not have been possible. This is one of the benefits from the approach being taken. A devolved Administration and Minister in the North responsible for this area would also assist in enhancing this benefit.

Ireland is a small island and the creation of one electricity market makes sense. As far as a reduction in energy prices is concerned, I welcome this change. The proposed increases from 1 January were severe. The idea behind the joining of both markets is that it will provide a larger market which will attract the entry of new energy providers. If the market is seen as sufficiently attractive to providers, this will bring down prices.

There must be a better deal for electricity consumers. I have spoken before about the outrageous prices consumers must pay for what is an essential service. It is important to use electricity in the most efficient way possible. Senator Quinn's comments on the experience in Australia was interesting. Similar moves are being made in Cuba, where the authorities are active in this regard. The measures being taken by the Australian authorities sound draconian but there is no choice in the matter; we must all take severe action. It would be difficult to enforce legislation imposing restrictions in the style of light bulbs that may be used. Such initiatives are worthwhile, however, and I ask the Minister to consider the developments in this regard in Australia.

The message about using electricity efficiently is being passed on to consumers, who not only wish to improve the environment but are also becoming aware that the efficient use of electricity will reduce their bills. When electricity prices increase, however, will these savings be obvious to the consumer? If their bills are the same or even higher, it may seem that the efforts they make to become more efficient are for naught.

The division of the electricity market on this island into North and South is economically unfeasible if we wish to ensure a better deal for consumers. I have already mentioned the importance of a larger market in attracting energy providers. On joining the two markets there is the question of making efficient the generation and provision of electricity. There is a duplication of electrical plant north and south of the Border, one that flies in the face of efficient energy provision. This is particularly evident in County Donegal where the supply was previously brought up from the south, instead of coming from Northern Ireland. The northern part of the country would be clearly more efficiently served from the Northern counties. This Bill will facilitate that improvement.

Another provision of the Bill is that it will require all providers to make available to the grid all the electricity they generate. This means that if they generate more than a certain amount of kilowatts, they are legally compelled to provide that electricity to Irish consumers. This will ensure an efficient use of energy and will presumably have the knock-on effect of bringing down prices.

At current estimates, the price of electricity will rise by between 0.3% and 3.0% in 2008, with a reduction coming in 2009. These figures are based on calculations taking into account the current use of fuel to generate electricity. While I welcome legislation that seeks to rationalise the market to provide a better deal for consumers, I also recognise that the generation of electricity is dependent on other markets, especially that in fossil fuels.

Any reduction in energy costs should be achieved alongside greater efficiency in domestic and commercial use of that energy. This is being achieved in many cases. Other sources of energy apart from fossil fuels should be explored. While good work on this is being carried out by agencies such as Sustainable Energy Ireland, more should be done. I commend the Minister on the inclusion in the budget of many measures for the provision of alternative and sustainable energy.

The Minister may be in a position to respond to the statements made by Mr. Eddie O'Connor on the "Today with Pat Kenny" show during the week.