Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 124: To ask the Minister for Communications, Energy and Natural Resources his policy in relation to reversible tariffs or smart meters for households and other micro generators of wind power; if he intends instructing the Commission for Energy Regulation to ensure such a facility is available to micro-producers; and if he will make a statement on the matter. [33870/11]

Pat Rabbitte (Dublin South West, Labour)
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Smart meters facilitate energy efficiency by providing consumers with more detailed, accurate and timely information regarding their energy consumption and costs, thus helping consumers reduce any unnecessary energy usage and shift any discretionary electricity usage away from peak consumption times.

The traditional electricity meter is not capable of operating in reverse and as a result is incapable of giving credit for electricity exported to the grid. A smart meter can measure the consumption of energy, and can transmit data using a form of electronic communication. A key feature of a smart meter is the ability to provide bidirectional communication between the consumer and the supplier/operator.

The Commission for Energy Regulation (CER), is overseeing the national programme to develop smart meters working with my Department, ESB Networks and Bord Gáis Éireann. Pilot trials are under way and a comprehensive cost benefit analysis has been completed, which quantifies the benefits for consumers and the energy system.

Micro-scale electricity generators seeking to export excess generation to the grid would require smart meters. ESB has been operating a micro-generation feed-in-tariff scheme under certain conditions for the domestic sector for a number of years, with 387 signed up to date. The available tariff is 19c Kwh, made up of a 10cent Kwh tariff offered by ESB Networks and a 9cent Kwh tariff offered by ESB Customer Supply. No other supply companies have chosen to introduce a tariff to date, although it is open to them to do so.

A number of years ago, when the scheme was announced, ESB Networks announced that an import/export meter would be provided to the first 4000 micro-generation installations countrywide over 3 years. To date, the take-up rate is under 10%.

The Programme for Government commits to the introduction of a microgeneration feed-in-tariff at a tariff rate that will not be significantly above single energy market (SEM) price for electricity. The experience from the ESB tariff (at 19c Kwh) as well as from studies undertaken by the Sustainable Energy Authority of Ireland (SEAI) are that a tariff not significantly above the SEM price (currently around €7.2 Kwh) would be unlikely to stimulate take-up of microgeneration.

I will shortly be considering advice from SEAI and my Department on the costed options for encouraging microgeneration with a view to determining appropriate directions not least in the present budgetary circumstances. In the meantime, with regard to smart meters, I understand that the CER is shortly due to issue a public consultation seeking views on smart metering and a potential national rollout. There will be an opportunity for all those interested, including microgenerators, to make the case as part of that consultation as to their views on any future rollout programme.