Fiona O'Malley (Progressive Democrats)

I welcome the publication of this Bill and am glad to see it going through the Seanad. I especially welcome it because it establishes EirGrid as a separate entity. This was something that had to be done. I listened to previous speakers who worried about the possible privatisation of the power industry. They have nothing at all to fear. That is partly why EirGrid had to be separated from the ESB and established on an independent basis. The grid is vital to the distribution of energy and therefore must remain in public ownership. Although competitive forces have worked in other areas and, by definition, provide better results for us, true competition could not occur in this country until the grid was separated from the generating capacity provided by the ESB.

Others may argue — Senator O'Toole was of this opinion to some degree — that competition has been detrimental to the energy market. I agree with them in some instances. The power market is completely different from any other kind and is not subject to the usual market criteria. I do not believe that what we were required to do in terms of liberalisation as a result of European Union directives has worked in this country. Unfortunately, it has scared off any notion of competition within the power generation sector. That is not a good thing. The Bill gives that strength to a newly established EirGrid. Many players in the energy sector were concerned that it was only lip-service and that EirGrid was not to be separate from the ESB, but it is finally established. I know that EirGrid itself was keen to ensure it would be seen as entirely independent. It is an important step in the future development of our energy market that this should be the case.

I particularly welcome the establishment of an interconnector. I agree with Senator O'Toole's point that this is as significant as the setting up of Ardnacrusha which I believe was in 1923. The interconnector provides us with the ability to develop our wind capacity. Without the required investment, it would not be possible. Having observed the energy market closely over the past five years and noted the moratorium on wind projects, I realise the grid did not have sufficient capacity.

Part of the reason for the increase in electricity prices is the investment required to make up for the lack of investment in the past. Energy prices, including electricity prices, were kept at an artificially low level, which suited us, but this has now caught up with us. We need to make the investments that need to be made in the grid, particularly as we are connecting with Britain and further into Europe through the interconnector. It is a vital infrastructural component because it deals with the big problem of security of supply.

I very much look forward to us talking about having an interconnector extending directly to Europe because this would not only allow power to be supplied to us, as a peripheral nation, but would also allow us to sell power back to Europe, particularly given our wind capacity. I have no doubt that we will be able to generate more electricity and, as a consequence, funds for ourselves. The necessary investment is very timely and particularly important.

The Minister referred in his speech to the forthcoming publication of EirGrid's transmission development strategy to 2025. This is also very timely. The Minister did not refer to micro-generation, of which he is a fan. We are all becoming more energy savvy. I refer not only to farmers but also to those constructing their own houses, on which one can have one's own windmill. We could sell electricity to the grid but we will not be able to do so unless the necessary investment is made in the grid. I hope the transmission development strategy will take cognisance of the considerable possibilities that exist.

The Joint Committee on Climate Change and Energy Security invited EirGrid to a meeting to discuss the interconnector relatively recently. I am worried about the financing of the project. Senator O'Toole alluded to this. It will be more difficult to finance it than originally envisaged but we cannot afford to let it slip. In the past, when economic circumstances were a little tighter, we failed to invest in fundamental infrastructure. I hope we have learned from this and that the interconnector project will not suffer as a consequence.

I am worried about the cost to the end user. Investments by EirGrid have increased the price of electricity. People are very conscious of the increases in their domestic bills and it is also a major problem for industry. I know from multinational companies in particular that the cost of electricity in Ireland is a major worry. It is now higher up on the agenda and we need to be very careful about it. We will price ourselves out of the market if we do not keep an eye on rising costs.

This Bill provides us with an opportunity to consider our direction regarding energy development. It is always good to have the opportunity to think about what we are doing and where we are going. It is regrettable that the Minister did not mention micro-generation in his contribution. I accept the Bill's scope does not extend beyond interconnection but, as is the way, all these matters are tied together. I welcome the Bill and look forward to its swift passage and implementation.