Written answers

Wednesday, 23 April 2008

Department of Communications, Energy and Natural Resources

Electricity Generation

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 102: To ask the Minister for Communications, Energy and Natural Resources the most up to date position in regard to the reconfiguration of the ESB and the separation of generation, transmission and distribution, including the transfer of assets; the degree to which discussions have taken place with management and unions in this regard to date; and if he will make a statement on the matter. [14695/08]

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 119: To ask the Minister for Communications, Energy and Natural Resources the process, including deadlines and timescales, that will surround the transfer of grid assets from the ESB to Eirgrid; and if he will make a statement on the matter. [14793/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 102 and 119 together.

I would refer the Deputy to my Statement of 13th March on the future of Ireland's electricity sector. In that Statement I affirmed the Government's policy commitment in the Energy Policy White Paper and the Programme for Government to transfer the ownership of the electricity transmission assets from ESB to EirGrid. It is also fundamental Government policy that we retain the electricity and gas networks as strategic national assets in state ownership which will never be privatised. The unbundling of the transmission assets involves the resolution of complex technical, financial and operational issues as well as legislation. In the context, not least, of wide-ranging challenging priorities for ESB and EirGrid, I have proposed that an independent analysis of the transmission issues, including costs, benefits and regulatory impact assessment, be conducted in the context of EU developments and the all island single electricity market.

Statements by my predecessor and I, on this issue, have consistently underlined the need for transparent and inclusive engagement with all relevant stakeholders in the process of implementing Government policy in relation to transmission. Input to the process of independent analysis will accordingly be invited from the direct key stakeholders. These are the management and unions of ESB and EirGrid, the ESB Employee Share Ownership Trust, as well as the Commission for Energy Regulation and the Department of Finance. As I also announced in my statement, I intend to appoint a senior independent figure to chair this process. This will include the commissioning of independent consultants to carry out the technical and economic analysis.

All the direct stakeholders have pivotal roles to play in the process of engagement and analysis and in achieving outcomes that are good for EirGrid and ESB and which are satisfactory for all parties concerned and in the best interests of the economy and consumers. I look forward to getting this collective process under way following my appointment of the senior independent chair shortly. Government policy is clear in relation to ensuring the strategic future of both EirGrid and ESB as strong viable Semi State bodies with key roles to play in delivering national goals for emissions reduction, renewables and energy efficiency as well as security of supply and competitiveness.

I welcome ESB's announcement of its new Strategic Framework to 2020, which will see an unprecedented capital investment programme by the company at home and abroad in support of our goals for renewable energy, energy efficiency, emissions reduction and energy security. I look forward equally to EirGrid's forthcoming Transmission Development Strategy 2025. This will set out an ambitious national plan for investment in the transmission system over the next two decades in support of economic, social and regional development and the integration of renewable energy generation.

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