Written answers

Tuesday, 27 March 2007

Department of Communications, Energy and Natural Resources

Electricity Grid

11:00 am

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 98: To ask the Minister for Communications, Marine and Natural Resources the mechanism he will use to arrange for the transfer of the transmission grid assets to Eirgrid; and the tripartite agreements that may have been in place between the Government, the ESB and the ESB unions regarding the future ownership of such assets. [11490/07]

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 104: To ask the Minister for Communications, Marine and Natural Resources when the shape of the proposed restructuring of the ESB is expected to be finalised; and if he will make a statement on the matter. [11472/07]

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 151: To ask the Minister for Communications, Marine and Natural Resources if he has identified fully the various structures anticipated for the future of generation and transmission of electricity; the way the ownership of the networks are expected to be held; if they will be held by the public or private sector; and if he will make a statement on the matter. [11439/07]

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 165: To ask the Minister for Communications, Marine and Natural Resources the role he sees for the ESB in the context of generation and transmission of electricity in the future; and if he will make a statement on the matter. [11425/07]

Photo of Damien EnglishDamien English (Meath, Fine Gael)
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Question 176: To ask the Minister for Communications, Marine and Natural Resources the way he anticipates the ownership of the national electricity grid to develop in the future; if ownership is intended to be retained by the public sector or otherwise; and if he will make a statement on the matter. [11475/07]

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 182: To ask the Minister for Communications, Marine and Natural Resources his proposals for the future ownership of the ESB; if privatisation is his intention; and if he will make a statement on the matter. [11454/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 373: To ask the Minister for Communications, Marine and Natural Resources the role he sees for the ESB in the context of generation and transmission of electricity in the future; and if he will make a statement on the matter. [11550/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 386: To ask the Minister for Communications, Marine and Natural Resources if he has identified fully the various structures anticipated for the future of generation and transmission of electricity; the way the ownership of the networks are expected to be held; if they will be held by the public or private sector; and if he will make a statement on the matter. [11564/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 399: To ask the Minister for Communications, Marine and Natural Resources his proposals for the future ownership of the ESB; if privatisation is his intention; and if he will make a statement on the matter. [11579/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 415: To ask the Minister for Communications, Marine and Natural Resources when the shape of the proposed restructuring of the ESB is expected to be finalised; and if he will make a statement on the matter. [11597/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 418: To ask the Minister for Communications, Marine and Natural Resources the way he anticipates the ownership of the national electricity grid to develop in the future; if ownership is intended to be retained by the public sector or otherwise; and if he will make a statement on the matter. [11600/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 428: To ask the Minister for Communications, Marine and Natural Resources his plans for the future of the ESB; and if he will make a statement on the matter. [11623/07]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 98, 104, 151, 165, 176, 182, 373, 386, 399, 415, 418 and 428 together.

Government policy in relation to the ownership of the electricity and gas networks is clearly set out in the recent White Paper on Delivering a Sustainable Energy Future for Ireland. It is the Government's explicit position that the transmission and distribution network assets will remain in State ownership as strategic national assets and that these assets will never be privatised.

As I have also made it very clear to this House on a number of occasions, there are no plans to privatise any part of the ESB and The Government fully supports the continuation of ESB as a strong and commercially viable vertically integrated utility within State ownership. This will continue to be the position. It is equally the case that EirGrid as Transmission owner and operator will remain in State ownership now and in future.

ESB Group will continue to own and run the distribution network and will continue to undertake the major networks infrastructure investment programme to provide enhanced levels of continuity of supply for the economy and the consumer.

In power generation, ESB has been given approval to build the new power plant at Aghada, Co. Cork. The ESB-CER Asset Management Strategy Agreement will see ESB Powergeneration reducing its market share by 2010 and becoming more efficient and commercial in the process. The ESB Group will continue to compete successfully with Viridian, Airtricity and other independents in power-generation and electricity supply in the all-island electricity market. ESB will also continue to develop its renewable energy portfolio on the island.

Over the next five years, ESB Group will, through ESB International, strongly expand its increasingly profitable all-island, UK, European and international business in power generation and supply, renewable energy and consultancy services.

Informed by a wide range of views from interested players, the Government has decided this is needed in order to secure a competitively priced energy supply and a positive investment environment for competition. Further structural change is necessary in Ireland's electricity sector.

The Government's decision to transfer by end 2008 the transmission assets from ESB Group to EirGrid, establishing it as both the owner and the operator of the national transmission system, is a vital part of the further change needed.

Combining the ownership and operation of the transmission system in EirGrid will deliver confidence to all market players that the system is run in a non-discriminatory way. It will underpin the efficient operation of the all-island electricity market. It is also the norm across Europe.

The combining of ownership and operation of the transmission assets will also reduce the amount of heavy regulation on both EirGrid and ESB. It will deliver efficiencies and reduced overheads for EirGrid. The result will be reduced costs for the electricity users over time.

Combining the ownership and operation functions within EirGrid will also enable more efficient and timely integration of renewable energy on to the grid system. This is critical for delivery of our ambitious renewable energy targets.

As well as supporting a strong ESB, the Government is equally firm in its commitment to a strong, independent and forward-looking EirGrid as the State-owned utility charged with the ownership, development and management of the national grid transmission system and as operator, jointly with its Northern Ireland counterpart, of the Single Electricity Market on this island.

EirGrid has specific responsibilities to ensure security of electricity supply, manage national electricity demand, and to ensure fair and transparent access to the grid for all players in Irish power-generation. The proposed restructuring will ensure that it can effectively deliver on those responsibilities.

The mechanisms to implement the successful transfer by end 2008 of the transmission assets will comprise a range of legislative and commercial components. As enshrined in successive Partnership Agreements we will work on the principle that change requires negotiation and agreement. There will be a full process of engagement with the Management and Unions of both ESB and EirGrid over the coming months as we work together on implementation by the end 2008 deadline. The process of discussion will also include the legitimate concerns of the ESOT.

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