Éamon Ó Cuív (Galway West, Fianna Fail)
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71. To ask the Minister for Communications, Energy and Natural Resources the costs incurred to date on implementing the single electricity market here; the benefits that have accrued from it; and if he will make a statement on the matter. [27858/13]

Pat Rabbitte (Dublin South West, Labour)
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The regulation of the electricity and gas market is the responsibility of the Commission for Energy Regulation (CER). The Electricity Regulation Act 1999 provided for the establishment of the CER as an independent statutory regulator. Since its establishment, there have been a number of changes to the regulatory framework, and CER’s functions, in line with the continually evolving energy policy landscape and partly as a result of EU obligations.

With a view to meeting policy objectives, the CER has played a pivotal role in the development of the Single Electricity Market (SEM) which has been operating in Ireland and Northern Ireland since November 2007. It represents one of the first cross-jurisdictional markets of its kind in the world.

The all-island Single Electricity Market (SEM) is the combination of two separate jurisdictional electricity markets in Ireland and Northern Ireland and is governed by the SEM Committee (SEMC). The SEMC currently consists of a membership drawn from the CER in Ireland, the Utility Regulator (UR) in Northern Ireland and an independent member, who also has a deputy.

Independent analysis has indicated that the market has worked well since its introduction in November 2007 and continues to deliver benefits to consumers through the use of efficient generation plant to meet demand across the whole island. The SEM model of setting prices in a transparent and cost reflective manner is not only assisting to promote competition and attract new investment, it has also contributed to improvements in the availability of generation plants. The structure of the SEM has ensured that generators, including new players, have invested in the market, thus ensuring security of supply.

This is evidenced by recent decisions to invest in the Irish electricity market by a variety of market players. Bord Gáis opened the 440 Mega Watt (MW) Whitegate power station in 2010 and ESB commissioned the 435 MW Aghada power station in the same year. The East West Electricity Interconnector (EWIC) commenced operation in 2012 with a capacity of 500 MW. Scottish and Southern Electricity (SSE) is currently constructing a 460 MW gas-fired power station at Great Island, Co. Wexford, and expect the plant to be operating from 2014. The SEM has also facilitated the connection of over 2,400 MW of renewable energy to the grid.

The SEM project was developed by both regulators. The allowed project costs incurred in its establishment were paid for by both regulators and were ultimately borne by electricity customers in the Irish and Northern Irish markets.

The SEM will continue to evolve in line with European electricity market developments, bearing in mind the primacy of the electricity customer when considering market evolution.