Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 74: To ask the Minister for Communications, Energy and Natural Resources if he consulted with the industry in regard to the proposed carbon revenue levy to be imposed on generators; the views of the Commission for Energy Regulation; and if he will make a statement on the matter. [23026/10]

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

The introduction of a carbon revenue levy has been the subject of much public discussion since the single Electricity Market was established in 2007 and the decision by the SEM Committee to allow generators to pass through carbon while availing of the free allowances to 2012. The Commission for Energy Regulation (CER) has consistently taken the view that the introduction of a levy was a matter for the Government. Large Energy Users, IBEC and Forfás have been calling for the introduction of the levy for some time. The issue was discussed at a Round Table Forum on Energy Costs for Business which took place in Farmleigh in July 2009. This forum was chaired by my Department and involved the Departments of Finance and Enterprise, Trade and Employment, the CER, the energy sector, Large Energy Users, ESRI, Forfás, IBEC, IDA and Enterprise Ireland. At this forum, large energy users and Forfás called for the introduction of the carbon windfall levy.

The Government agreed, around the time of the Forum, to my proposal to work to progress legislation to recover carbon windfall gains from electricity generators. The Government's intention to progress the legislation was flagged by the CER in its prices decision in August last year.

My Department subsequently met with several electricity generators who wished to discuss their concerns about the potential introduction of a carbon levy. I also met with some of the generators in question. In those meetings the generators outlined their concerns and my Department agreed to meet as necessary once the very complex work of drafting a proposed scheme was progressed.

In addition, shortly before the publication of the proposed legislation on 6th May, my Department met with those generators who would be affected by the introduction of the levy to outline the proposals and to hear their views.