Bernard Durkan (Kildare North, Fine Gael)
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Question 551: To ask the Minister for Communications, Marine and Natural Resources if recent media reports that EirGrid has agreed to take office space in Ballsbridge at record breaking rents of €650 per square metre are accurate; the reason such an expensive location was selected; the considerations that were given to alternative and less costly locations; the way this fits with the Government's national spatial strategy and decentralisation programme; his views on such costs being added to consumers' electricity bills at a time of widespread concern regarding electricity prices; and if he will make a statement on the matter. [14819/07]

Noel Dempsey (Meath, Fianna Fail)
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On July 1 2006, EirGrid plc took over the operation of Ireland's electricity transmission system from ESB National Grid (ESBNG). EirGrid currently occupies office space within ESB premises. In order to comply with EU requirements to liberalise the electricity market, it is necessary to effect the full separation of EirGrid from ESB. The move, by EirGrid, into its own office space is an important step in this process.

The issue of premises is a matter for the board and management of EirGrid and not one in which I have a function. The negotiation of rents is a matter for the company, although I note reports that city office rents are reportedly at their strongest for eight years. The position in law is that sole responsibility for the regulation of electricity tariffs, including standing charges, lies with the Commission for Energy Regulation (CER), which is an independent statutory body. As Minister, I have no function in setting or regulating these tariffs.

The CER regulates tariffs and charges for the connection to and use of the transmission system by market participants. This ensures that only efficient costs are passed on to end customers. Transmission tariffs are designed to recover the total costs associated with the transmission business. With regard to increased overheads such as office accommodation costs, the CER works with the transmission system operator to ensure that these costs are reasonable.

EirGrid's remit supports the National Spatial Strategy through investment in the development of the electricity transmission network throughout the regions as a key element of physical infrastructure.