David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 497: To ask the Minister for Communications, Energy and Natural Resources the efforts he is making to increase competition in the energy market; and if he will make a statement on the matter. [4591/09]

Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

The introduction of the all-island Single Electricity Market (SEM) in November 2007 marked an important milestone in the development of competition in the Irish electricity sector. This market has already attracted new entrants to the Irish electricity generation market.

Our ambitious renewable generation targets will also attract new generators to the Irish market. However, the all island market is relatively small and accordingly only a certain level of generation capacity can be adequately accommodated.

This is mirrored by developments in the retail electricity market. Airtricity has decided to offer a new tariff to domestic electricity users to compete with ESB and I understand that other companies are currently considering entering sections of the market. This progress represents the dawning of real choice for electricity consumers, which will help to keep energy costs competitive.

The Government will continue to promote the development of competition as a cornerstone of our energy policy. We will ensure the completion of the reduction of ESB's market share in line with the CER-ESB Asset Strategy Agreement, the completion of the transfer of the Transmission System Assets from ESB to EirGrid, the successful development of the East West Interconnector by 2012 and the implementation of the grid development strategy set out in EirGrid's Grid 25 programme.

On a European level, the Government will continue to implement reform of the electricity and gas markets in line with EU Internal Energy Market Directives.