Written answers

Thursday, 19 October 2006

Department of Communications, Energy and Natural Resources

Electricity Sector

5:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 36: To ask the Minister for Communications, Marine and Natural Resources his vision for the future development of the ESB and Eirgrid in view of the Deloitte & Touche report and his Department's Green Paper on Energy; if these will remain in public or private ownership; and if he will make a statement on the matter. [33530/06]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 42: To ask the Minister for Communications, Marine and Natural Resources if it is intended to retain the electricity grid in State ownership having regard to the Deloitte & Touche Report and his Department's Green Paper on Energy; and if he will make a statement on the matter. [33540/06]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Question 68: To ask the Minister for Communications, Marine and Natural Resources the reasons for not separating out the ownership of the transmission and distribution electricity network under separate State ownership, as recommended by the Deloitte report. [33485/06]

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 110: To ask the Minister for Communications, Marine and Natural Resources the reason he delayed the publication of the Deloitte & Touche Report on the electricity sector for so long; his plans for the future of the ESB in the context of the report's recommendations; and if he will make a statement on the matter. [33408/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 36, 42, 68 and 110 together.

It has always been my view that the Deloitte report would stand as an important contribution to the wider debate on future energy policy directions. I decided therefore to publish the report in the context of the Green Paper when finalised and which was published on 1 October 2006.

One of the main messages coming out of the Deloitte report is that, without changing the current structure of the Irish electricity market, challenges in developing competition and choice for consumers will remain. The report makes a specific recommendation to fragment the ESB as a way of delivering competition in generation and supply.

The Government is firmly of the view that there is strategic value in maintaining a strong, commercially viable ESB into the future and does not, therefore, favour the fragmentation or privatisation of the ESB. Nor does the Government intend to privatise EirGrid. Retaining the natural monopoly networks in State ownership is a core policy tenet for the Government.

The Government agrees that structural reform is necessary in the interests of facilitating the development of a competitive market in electricity, providing consumer choice and driving efficiencies within the ESB itself. The creation of the Single Electricity Market in 2007 is a critical context also.

The Green Paper indicates the lines of action which the Government is considering as a means of achieving the necessary change, including the scope for establishing a State-owned land-bank of potential generation sites and measures to tackle ESB's dominance in the area of price-setting plant. There are issues to be addressed in the short, medium and longer term if we are to deliver a more competitive transparent and secure energy market on the island of Ireland.

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