Joe Costello (Dublin Central, Labour)
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Question 46: To ask the Minister for Communications, Energy and Natural Resources the action he will take to guarantee the objective of achieving lower prices for consumers through breaking up the ESB; his views on whether the splitting of the ESB may be unnecessary for generating competition and that splitting the ESB will endanger the long-term energy security of people here; and if he will make a statement on the matter. [28951/07]

Eamon Ryan (Dublin South, Green Party)
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The White Paper on Energy Policy and the Programme for Government endorse the case for a process of structural change in the electricity sector. The effective working of the all-island market, the competitiveness of energy costs, the interests of consumers and the economy require it. We need to create the conditions that will deliver more competition, real consumer choice and support greater innovation in the electricity market and the strategic development of the distribution and transmission networks.

The Government is committed to the transfer of the electricity transmission network assets from ESB to EirGrid by end 2008. EirGrid already manages the assets as a fully independent entity. Combining the ownership and operation of the transmission assets makes sense. It will ensure that the system operates transparently and effectively, giving confidence to all market players. The present structure is complex and cumbersome and adds to costs. It creates additional overheads and transaction costs, duplication of skills and activities, and the risk of blurred accountability. It also makes for more complex regulation.

The transfer of ownership of the transmission assets will be implemented in a way that ensures the future of both EirGrid and the ESB as strong Semi State companies, as well as reflecting the position of the State and the ESOT as shareholders. There is no question of breaking up the ESB. Both the ESB and EirGrid will be stronger and better placed strategically as a result of the Government's actions.

We will have a healthier, more transparent energy market, which will reinforce the benefits of the Single Electricity Market and encourage investment. Transparency in relation to access to the Grid and Transmission assets will attract more players into the market and encourage competition. Competition on its own is not necessarily a panacea for lower energy prices but a more competitive and transparent environment will benefit the energy sector and Irish business and the consumer.

The Energy Policy White Paper and the Programme for Government contains a range of actions to deliver energy security of supply and a low carbon future for Ireland. The ESB, EirGrid and Bord Gáis Éireann together with all the players in the energy sector, have crucial contributions to make in the collective challenge to address security of supply, competitiveness and climate change.