Alan Dillon (Mayo, Fine Gael)

I join the Acting Chairman in wishing Kilmeena GAA club the very best of luck in the county final. I also acknowledge the tremendous Relay for Life team and committee. It is an outstanding organisation that has done Trojan work in terms of funding and continues to go above and beyond.

In response to Senator Collins, I thank her for her amendments. We certainly appreciate the wide support for this important legislation which is very much focused on the largest and most significant investment in our grid infrastructure in the history of the State. It is akin to rural electrification. This Bill is important because it allows the ESB to increase its borrowing and provides, for the first time, for an equity injection in the ESB which will reduce its overall borrowing. Unquestionably, we have a country that continues to grow and we have seen that in the demographics and in the national planning framework. There is ongoing monumental change in terms of usage and demand for electricity, so investment in the grid is critical. It will allow us not just to expand but also to modernise and reinforce our electricity network infrastructure. This legislation underpins PR6, which is our investment in the electricity grid and network over the course of the remainder of this decade.

Again, I thank Senator Collins for her suggested additions. She has explained that, under amendment No. 1, the proposed new subsection (4A) would involve the creation of a prioritisation framework. That framework would require investment in the grid to prioritise particular elements while excluding upgrades of connections of data centres. I genuinely recognise the positive intent of the proposal, which is to ensure that our electricity network development prioritises the connection and supply of hospitals, Garda stations, water systems and, of course, housing. However, we have seen the draft decision on PR6 and how it clearly itemises and identifies exactly what this grid investment is underpinning. It is underpinning the housing requirements of this country, the social infrastructure that we need, like schools, and the industrial infrastructure that we will require to facilitate future growth. I assure the Senator that PR6 takes many Government targets into account including, for example, the connection of up to 50,000 new homes per year and up to 1 million EVs.

Under EU law, connection and supply must be carried out in a non-discriminatory manner. We are currently considering this matter and will be happy to share this information once the review has concluded. Within PR6 there are 29 very significant projects for onshore network development planned and the vast majority of these will serve multiple needs. I have already mentioned enhanced security of supply, grid resilience and grid expansion.The project will enable us to bring additional renewable energy generation and distribution onto the grid. Ireland is a European leader when it comes to integration of renewables into our grid. While challenges remain, it is important to recognise that things have been done well, although we must do a lot more and in a quicker fashion.

The proposed subsection (4B) would place specific reporting requirements on the ESB regarding its borrowing. Those borrowings are already outlined and published in the ESB's annual report and its accounts are audited. In light of the significant investment by the State, and as part of the ongoing engagement with the ESB, we will develop a shared subscription agreement that will require ESB Networks to provide significant detail on how it is financing its programme of investment, including its debt-raising. As part of that agreement, the ESB will be required to deliver a quarterly report to the Minister, Deputy Darragh O'Brien, in relation to its ongoing expenditure, project management and delivery on the core infrastructure projects under PR6.

There will, of course, be the capability for the ESB, EirGrid and others to appear before the Oireachtas committees when required to do so, and rightly so. In addition to oversight by out Department, the CRU underpins the PR6 guidelines, which require a significant increase in reporting by ESB Networks on its expenditure and programme delivery. I am sure Members will agree that the combined effort of the CRU and my officials will result in significantly increased oversight of the Government's investment on behalf of its people. It will ensure value for money while also, and most importantly, focusing on assisting ESB Networks in any way possible to remove any roadblocks to delivery.

Regarding the impact of ESB borrowing on customer electricity prices, the amount charged to customers by electricity suppliers is a matter for those companies. We have already published the interim report of the national energy affordability task force and we introduced some additional measures in the budget. We are working on further long-term measures as we look towards the publication of the final report in 2026. We will look at issues such as network charges and the length of borrowing repayments with a view to reducing the charge on customers. The CRU will announce by the end of the year when it expects the impact of its major infrastructural delivery plan to be seen on people's bills. The cost of that work will be spread over a 25- to 50-year life span in terms of how it is recouped by ESB Networks for customers. Certainly, this investment in our grid will lead to lower system costs and reduced constraints on the network, including a reduced need to turn off wind turbines.

A significant investment that will drive down the overall cost of electricity is in the North-South interconnector. That is critical to delivering grid resilience and expansion and bringing the excess renewable energy produced in Northern Ireland to the areas of high-energy demand in the South. If we do not deliver that project, wind farms will not be able to generate at their capacity and we will be paying to turn them off. It makes absolute sense for this key infrastructure to be built. We must work collaboratively with local communities to ensure it is delivered.

The proposed new subsection (4C) would prevent any borrowing activity by the ESB that could lead to increases in domestic electricity tariff rates beyond inflation and would require the ESB to publish an annual statement confirming compliance. Under its legal mandate, the CRU, as the independent regulator, is responsible for the network tariffs and grid investment plans. Network charges are primarily a means by which grid infrastructure is funded. Through the equity investment in the ESB and the further equity investment we will make in EirGrid, we are reducing the amount of borrowing required. The CRU sets the network tariff to align with the grid investment plan. It would not be appropriate to legislate to restrict activities relating to that effort.