Mark Dearey (Green Party)

A portion of the levy goes to wind power, which is also more expensive to produce per kilowatt-hour than oil at current prices. If the price goes to €100 a barrel again, wind-generated energy will become a competitive alternative. If it goes to €147 a barrel, a price at which it spiked in July 2008, wind will become much cheaper. Arguing whether wind is cheap or not all depends where oil prices stand. Everyone accepts the day will come when oil will go back to €147 a barrel and never goes down again. We need to be ready for that day. Squeals of protest would rightfully come from Members opposite if there were a lack of preparedness and forward planning for such an inevitability. The current measures being adopted will prepare us for this. I ask the Opposition to spare us some of the nonsense I heard earlier. Such a structure is inevitable for what will be a demanding energy future.

It is unfortunate the Opposition chose a report that gave the average usage of 3,300 kW per year, some 2,200 kW below what the average household uses. When one gets into the 5,000 kW hours per year category, which 55% of Irish households are in, Irish household electricity prices are actually 2% below the European average because of the pricing band applied to such average use. I understand the reason the 3,300 kW figure was used was because of the abundance of holiday homes in the country which brings the average down to lower usage but for which prices are higher.

Band 1A, consumption of 20 MW a year will cost a business 16.9 cent per kW hour, 3% below the European average. The majority of small businesses in Ireland are in this category. I challenge Members opposite to refute this as I am one of those businesses and know this price. As the Minister of State pointed out earlier, as of last Friday, competition in this sector will be able to take full effect. Now that the shackles of price control have been taken off the ESB, I expect it will be a new force in a fully deregulated market. The same will happen in the domestic sector when the ESB's share of the market is reduced from 75% to less than 60%. This will only happen when another 15% of domestic users change from the ESB to Bord Gáis or Airtricity. By doing so they will be able to avail of a 14% reduction in charges for year one which will offset the 5% PSO charge.

I accept the PSO charge is regrettable but it is in place for historical reasons since the 1990s.