Michelle Mulherin (Mayo, Fine Gael)
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Question 130: To ask the Minister for Communications, Energy and Natural Resources the position regarding ownership of the power transmission grid; his views on whether the previous Government missed the EU deadline for unbundling the grid and transferring ownership to EirGrid; if the EU will now impose fines until we comply with the relevant EU directives; if he intends to seek a derogation from the directive; and if he intends to compensate the ESB for loss of the asset. [14792/11]

Pat Rabbitte (Dublin South West, Labour)
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The EU Energy Third Package, which sets out a complex range of measures relating to the further liberalisation of the Electricity and Gas Markets came into force in September 2009. The range of measures was due to be transposed by 3 March last but very few States have actually fully transposed the Directive.

Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC relates to the electricity market. The European Communities (Internal Market in Electricity) Regulations 2010 (S.I. 450 of 2010) were signed into effect on 17 September 2010 and mark the first step in full transposition of this Directive.

I will be bringing proposals to Government in due course with a recommendation on the next steps with regard to the future ownership of the electricity transmission assets in the context of options under the Directive. I am mindful of the urgency for an early definitive decision to comply with the legal deadlines in the EU Directive. In that context the European Commission has confirmed to all Energy Ministers that it acknowledges that Member States will take some time longer than the due date of 3 March to fully transpose and comply with the Directives.

Member States are required to formally notify the EU Commission of transposition measures. The imposition of fines against a Member State for breaches of EU legislation represents the culmination of a formal process which requires the issue of a judgment by the European Court of Justice against the Member State. The process is initiated by the sending of a formal notification by the EU Commission to the Member State concerned setting out the Commission's case and providing the Member State with the opportunity to state its case. To date, such a letter has not been issued against Ireland in regard to failure to fully transpose of the Third Package.