Michael Ring (Mayo, Fine Gael)
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Question 235: To ask the Minister for Communications, Marine and Natural Resources the subsidy which has been granted under the public service obligations order to a power station (details supplied) in County Mayo for each of the past seven years. [14099/05]

Noel Dempsey (Meath, Fianna Fail)
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Since 2002 the Commission for Energy Regulation has been responsible for determination of the level of public service order granted for Bellacorrick peat station by virtue of the Electricity Regulation Act 1999 (Public Service Obligations) Order (Amended) 2002, (S.I. 217 of 2002). The Commission for Energy Regulation is obliged under that order, from its commencement date of 23 May 2002, to approve the ESB's estimated additional costs incurred in complying with the public service obligation imposed on the ESB by my Department. It also apportions those costs, recoverable from all final customers of electricity, based on the proportion of maximum demand attributed to each category of accounts such as domestic, small-medium, and large.

The aim of the order is to ensure that Ireland has reasonable self-sufficiency in electricity generation capacity by ensuring that a percentage of the State's generation capacity is fired on indigenous peat to help protect the environment by promoting the use of renewable energy sources.

The public service obligation order requires the board, in its capacity as public electricity supplier to purchase electricity generated from peat and renewable, sustainable or alternative forms of energy. The amount of the levy, which is not a subsidy, is the excess of the board's allowed costs for bought-in and owned peat fired generation and alternative energy requirements over the best new entrant price for electricity. The levy includes an economic return on investment, where relevant, and any other revenue accruing to the board associated directly with peat-fired generation and alternative energy requirements generation schemes.

The commission's decision on the public service obligation charges for 2005 — CER/04/269 — contained, for the first time, a detailed breakdown of the allocation of the levy between the peat stations, peaking capacity and alternative energy requirements-supported plant. This included €1.060 million for Bellacorrick peat station for an estimated four-month operation. This was based on an installed capacity of 20 MW and 38 GW. The 2006 public service obligation calculation will reconcile any changes based on the actual operation of the plant. I am advised by the Commission for Energy Regulation, as the responsible authority in the matter, that a breakdown of the public service obligation charges for preceding years from 2002 onwards has not been published.