Written answers

Tuesday, 30 November 2010

Department of Communications, Energy and Natural Resources

Electricity Generation

5:00 am

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 57: To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the distribution of the carbon revenue levy; and if he will make a statement on the matter. [44985/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The Electricity Regulation (Amendment) (Carbon Revenue Levy) Act 2010, which came into effect on 1st July 2010, provides for the recovery of carbon windfall gains from electricity generators until the end of 2012. The legislation provides for the establishment of a fund administered by the Commission for Energy Regulation (CER), to whom the levy is paid. The first levy period ran from 1 July to 30 September and CER has recently advised that revenues in the region of €20 million in respect of this period have been paid into this fund.

The Act also provides that this fund is to be used for the benefit of the Exchequer as directed by the Minister for Finance and myself. The Government has decided that the proceeds of the levy are to be used for the continuation of the Large Energy Users (LEU) rebate until 2012. The CER is therefore distributing the funds received from electricity generators to Large Energy Users (LEUs) in accordance with the direction given to the CER by me in August of this year and as stated in their information note, CER/10/155, published on September 1st 2010.

There are two elements to these rebates. A fixed element is applied as a credit to each LEU's contracted electricity capacity each month. A variable element, also known as the kWh element, is calculated and applied based on customer consumption. Both credits will benefit all Large Energy Users connected at Distribution Group Seven and above and all Transmission connected customers, irrespective of supplier. The rebates will apply from 1st October 2010 to 30th September 2011. It is anticipated that in the region of €80 million will be distributed to large energy users over this period.

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