Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I thank Senators for raising the issue. There is no doubt that the single electricity market is an important asset, North and South, which allows us to share generation, reducing the need for expensive standby generation in each jurisdiction. It is the only fully integrated single electricity market in the European Union, which to some degree is why we do not need to do anything as there is legislation North and South that establishes it. The regulators have all the powers they need to ensure regulatory alignment and they sit jointly and maintain the fully fledged operation of the market. The sufficient powers are provided for in Part II of the Electricity Regulation Act 1999, in case Senators wish to examine it. The single electricity market is overseen by a committee comprising the regulator in the South and the regulator in the North, which jointly oversee the operation of the market, and it will not be disturbed by the British decision to exit the European Union. It is based on legislation North and South and will not be influenced in any way. It operates as a single market and, therefore, there is no question of cross-Border trading between North and South, although there are no tariffs on electricity in any event. It is a single market and operates as such.

Apart from it not being necessary to provide these powers because the regulators already have them, it would not be in accordance with the independence of regulators if the Oireachtas sought to impose an obligation upon them to report to a Minister. It is an important principle of regulators, overseen by European law, that they are independent of Ministers. The idea that they would be required to report to a Minister would be seen as encroaching on their independence. The Commission for Regulation of Utilities, CRU, reports to the Oireachtas through the Oireachtas Joint Committee on Communications, Climate Action and Environment. If Senators, therefore, at any point wish to cross-examine the CRU on the operation of the single electricity market, it is open to them to call the regulator to the committee, which it will be only too happy to attend. Independence of the regulator from the Minister is an important principle of regulation.

The final reason I do not believe the amendment is appropriate is the one raised by Senator Reilly. The single electricity market was developed under legislation enacted jointly North and South, and its committee has legislation North and South underpinning it. It would not be appropriate for the Oireachtas to seek to bind a committee that has separate legislative underpinning in the North. We have always approached the market by attempting to develop it jointly, but the amendment would be a departure from that important and established approach. I am happy to assure the House that there will be no disruption to the operation of the single electricity market North and South due to the British decision. While there may be disruptions to the market from east to west, that is, on the electricity interconnector, because much of the trade on the interconnector is based on a European platform, there is no fear of any immediate disruption because intra-day trading and security trading can continue. In the longer term, however, if Britain exits, we will have to establish a new basis for the east-west trade.This can be done in the longer term and we are satisfied that, in the short term, trade can continue on the Ireland-UK interconnector without disruption by the British decision. Energy is one of the areas where we have pretty strong security, from a trade point of view, in a hard exit situation. In subsequent sections, we are taking certain reserve powers to make doubly sure.