Written answers

Thursday, 10 March 2005

Department of Communications, Energy and Natural Resources

Electricity Generation

4:00 pm

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 20: To ask the Minister for Communications, Marine and Natural Resources when he expects to appoint consultants to review the electricity sector in this country; the terms of reference of the review; when he expects that the review will be completed; if the Government has any plans to privatise all or any part of the ESB; and if he will make a statement on the matter. [8213/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I expect that consultants will be appointed to undertake the review of the electricity sector in Ireland in May 2005. In regard to the specific terms of reference, I refer the Deputy to the tender document published on the Government's public procurement website at http://www.etenders.gov.ie.

As I confirmed in reply to a question on this issue on 8 February 2005, the review will comprise a comprehensive examination of the Irish electricity sector. This will include a detailed examination of the ESB's structure and its dominance. It is estimated that the review and report will take approximately six months.

On the question of the plans, if any, that the Government has regarding the ESB, I have previously confirmed my opposition to the privatisation of the transmission and distribution systems, which are critical national assets that should remain in public ownership. I believe there is strong consensus within Government and elsewhere about this. I have also previously stated my opposition to any privatisation that would result in the creation of a monopoly or near monopoly in the power generation sector.

Notwithstanding this, I will ask the consultants to examine all options as to the future shape of the ESB and, in particular, how to deal with its dominance in power generation. Finding an effective solution to this issue is critical for ensuring the future, orderly development of the market. The consultants will, therefore, be required to identify a range of alternative structures for the ESB and to identify those they consider to be the most appropriate. If the recommendations lead towards a change in the structure of the ESB, I would expect them to be supported by a detailed business case for any proposals.

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