Jan O'Sullivan (Limerick East, Labour)
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Question 103: To ask the Minister for Communications, Energy and Natural Resources his views on the deadline to deal with the unbundling of the electricity transmission system assets; the way he intends to proceed with this legislation; if he will outline the options for the State on this issue and his preferred option; and if he will make a statement on the matter. [37803/10]

Eamon Ryan (Dublin South, Green Party)
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Directive 2009/72/EC, which provides, inter alia, for the unbundling of transmission systems, entered into force in 2009. Member States are obliged to transpose the Directive into national law by 3 March 2011. My Department is working to deliver transposition of the Directive by the deadline.

The Directive requires Member States to ensure from 3 March 2012 that the ownership and operation of the electricity transmission system is separated from any undertaking engaged in generation or supply. As alternatives to full ownership unbundling, the Directive allows Member States to opt for establishment of an independent system operator or an independent transmission operator subject to detailed rules. The Directive also provides for a derogation whereby if a Member State considers that there are current arrangements in place which guarantee a more effective independence of the transmission systems operator than the independent transmission operator regime, a case may be made to the European Commission for verification and approval.

The Government's policy in relation to the ownership of the electricity transmission network is to transfer the assets to EirGrid the transmission system operator as stated in the Energy Policy White Paper 2007 and reaffirmed in the Programme for Government.

The Independent analysis currently underway in relation to the electricity transmission assets, includes an assessment of the costs, benefits and regulatory impact of the legal options for unbundling under the Directive set in the context of overall EU energy policy developments and the All Island single electricity market. The analysis which is being carried out by Frontier Economics Limited will be finalised shortly and will inform decisions on the substance of the required legislation required to transpose the Directive.