James Reilly (Dublin North, Fine Gael)
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Question 594: To ask the Minister for Communications, Energy and Natural Resources his plans for the ESB company; the effect those plans will have on the workforce and the cost of electricity to the consumer; and if he will make a statement on the matter. [18510/07]

Eamon Ryan (Dublin South, Green Party)
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The Programme for Government confirms that we will transfer ownership of the transmission assets from ESB to EirGrid by end 2008. High oil and gas prices worldwide are a reality with which Ireland, as price taker, has to contend. About 70% of the costs of generating electricity here are driven by international trends, our location and transportation costs. However, the remaining 30% of costs are a result of domestically controllable factors and are high by international standards.

The transfer of the transmission (Grid) ownership from ESB Group to EirGrid is a key action in the delivery of healthy competition and consumer choice in the electricity market. Quantification of the benefits of the Government's policy actions, in terms of electricity prices for consumers, will be a matter for the Commission for Energy Regulation (CER) in its annual price review but it is quite clear that transparency in relation to access to the Grid and Transmission assets will attract more players into the market and help to stimulate competition.

The ESB Group will remain a strong, commercially viable and fully integrated entity after the transmission asset ownership moves to EirGrid. In fact ESB will be even better positioned to deliver on its mandate in the distribution, power generation and supply sectors on a level playing field and to play a leading role in the development of new renewable electricity supplies and energy saving technologies. ESB International will be strongly growing its UK, European and international business. 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.

It is my view that any transactional costs inherent in the transfer process will not result in greater costs to the consumer. The Deloitte analysis considered that the transfer of the Transmission Asset Ownership function should not create a material cost. Nor will the transfer of ownership of the national grid transmission assets from ESB Group to EirGrid have negative implications for jobs, pay and conditions for ESB or EirGrid workers. I have already confirmed my commitment to working with ESB and EirGrid management and unions, as well as the ESB ESOT as minority Shareholder in the ESB Group, to ensure satisfactory outcomes which address legitimate concerns in the process of achieving the transfer of transmission asset ownership to EirGrid by end 2008.