Thomas Pringle (Donegal South West, Independent)
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Question 25: To ask the Minister for Communications, Energy and Natural Resources if he will explain in the context of the proposed sale of parts of the ESB under the troika agreement, the way he defines strategic and non-strategic parts of the company and specifically his definition of power generation as non-strategic; and if he will make a statement on the matter. [12893/12]

John Halligan (Waterford, Independent)
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Question 30: To ask the Minister for Communications, Energy and Natural Resources if he will explain in the context of the proposed sale of parts of the ESB under the troika agreement, the way he defines strategic and non-strategic parts of the company and specifically his definition of power generation as non-strategic; and if he will make a statement on the matter. [12895/12]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 25 and 30 together.

The Government has announced the programme of State asset disposals which will involve the sale of assets up to a value of €3 billion involving an orderly process of disposals over time and which also ensures that value is secured and fire-sales avoided on the basis that one third of the proceeds raised will be retained for re-investment on job creation initiatives in the economy.

Following detailed analysis which identified a range of complex regulatory and legislative issues the Government has decided not to proceed with a sale of a minority stake in ESB as previously signalled. The Government has decided that alternative asset disposal options will now be pursued, to include the sale of Bord Gáis Éireann's Energy business (but not including BGE's gas transmission or distribution systems or the two gas interconnectors, which will remain in State ownership); and some of ESB's non-strategic power generation capacity. The Government has reaffirmed its commitment to the retention of ESB as a vertically integrated utility of strategic importance in State ownership. The disposal of some of ESB power plants will be designed to materially improve the competitive dynamics of the single electricity market.

A Group comprising my Department and the Department of Public Expenditure and Reform and with the assistance of NewERA, is working to identify, by end-March, any remaining policy, regulatory, legislative and financial issues that may need to be addressed prior to disposal of BGE Energy and some of ESB power plants. In that context it is for my Department to identify, for my consideration, non-strategic power generation capacity in the ESB portfolio, in consultation with the Commission for Energy Regulation, NewERA and ESB.