Joan Burton (Dublin West, Labour)
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Question 478: To ask the Minister for Communications, Energy and Natural Resources his plans to ensure that surplus accruing to the ESB, including any effective subsidies to large electricity users, is remitted to the Exchequer in 2010; and if he will make a statement on the matter. [37700/09]

Eamon Ryan (Dublin South, Green Party)
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While global energy costs have declined over the last year, Irish energy costs remain a significant concern for all sectors of the economy, having risen significantly above EU average in recent years. This is primarily due to structural factors including Ireland's high dependence on imported fossil fuels, geographic isolation, a small and widely dispersed population and programmes of very significant investment in energy infrastructure, following two decades of under-investment in the networks. Recognising the concerns of indigenous business and the inward investment community, the Government has put in place a number of measures to mitigate the cost of energy for business. All electricity users benefitted in 2009 from direct subsidies totalling €567m. These were made up of an ESB rebate to consumers of €315m, a repayment of certain Public Service Obligation (PSO) levies of €87m and the deferral of some ESB network revenues until after October 2009.

In July the Government agreed that these subsidies will continue for large energy users at their current level until October 2010 and will then be phased out over the following two year period. In line with this Government decision, the ESB Board has agreed to pay a special interim dividend which is being used in the interests of the economy to fund the continuation of subsidies from October 1st 2009 to September 30th 2010. This special interim dividend is in addition to the dividend in 2009, which will be payable by ESB into the Exchequer in 2010 in accordance with the general dividend policy agreed between the Ministerial Stockholders and ESB in the context of the Strategic Framework to 2020. Consistent with previous dividends from the company, including the dividend paid by ESB in respect of 2008, current dividend policy is for a continued rate of 30% of profits after tax.