Tommy Broughan (Dublin North East, Labour)
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Question 373: To ask the Minister for Communications, Energy and Natural Resources the legal position in relation to the transfer of assets from the ESB to Eirgrid; if legislation or new regulations are necessary in order to transfer assets away from the ESB; the timetable and steps that he will take to transfer the ESB assets including all financial arrangements that will be necessary for the transfer to take place; and if he will make a statement on the matter. [18019/07]

Eamon Ryan (Dublin South, Green Party)
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The Programme for Government together with the White Paper on Delivering a Sustainable Energy Future for Ireland, sets the end of 2008 for completion of the transfer of the electricity transmission network assets from ESB to EirGrid.

The mechanisms to implement the successful transfer of the transmission assets comprise a range of legislative, commercial, legal and financial components.

I intend to bring the necessary legislation forward for Government approval by the end of the year. The Bill will include provisions enabling EirGrid to own infrastructure and undertake any necessary borrowing. The full extent and substance of the statutory provisions required will be teased out over the next number of months. The legislation is also likely to include a range of amendments to the Electricity Supply Act 1927 and the Electricity Regulation Act 1999 to fully reflect the new arrangement.

In line with successive Partnership Agreements, there will be a full process of engagement with the Management and Unions of both ESB and EirGrid on implementation of this policy decision by the end 2008 deadline. The process of discussion will also include the legitimate concerns of the ESOT.

The transfer of the transmission assets will be undertaken in a manner that ensures the future positioning of both EirGrid and ESB as strong Semi-State companies, as well as reflecting the position of the State and the ESOT as shareholders. I am confident that the ESB Group will remain a strong, commercially viable and integrated entity after completion of this process. It is equally important that EirGrid, as the independent owner and operator of the national grid, is securely positioned in that strategic role so that it can fully contribute to developing effective competition in the electricity market, reducing energy costs and encouraging investment as well as ensuring security of supply.