Written answers

Tuesday, 23 May 2023

Department of Communications, Climate Action and Environment

State Bodies

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
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167. To ask the Minister for Communications, Climate Action and Environment if he will provide a breakdown of how the dividend arising from the ESB in 2009 was allocated, in tabular form. [24202/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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In 2009, the Government approved the taking of a special dividend from ESB and the then Commission for Energy Regulation (CER), now the Commission for Regulation of Utilities (CRU), was tasked with implementing this decision through the mechanism of the network tariffs.

It is important to note that the CRU was established as an independent statutory regulator by the Electricity Regulation Act 1999 and enhanced under the Gas (Interim) (Regulation) Act 2002 and the Water Services (No.2), Act 2013.

The CRU is legally independent in the performance of its functions and is entirely accountable to the Oireachtas for such performance. It is funded by means of a levy on electricity and gas undertakings and income from licensing fees.

Following the 2009 Government Decision, the CRU, then the Commission for Energy Regulation (CER), published Information Note CER/09/117, which is attached for reference. This note outlines the CER decision to continue the rebate scheme set out in Information Note CER/09/002, also attached, for all LEUs to ensure they did not face any rise in their network tariffs.

The attached extract, Bill impacts of customer rebates, is taken from the CER Information Note CER/09/002, which sets out the details of the rebate mechanism.

"PSO Related Rebate

Monies from the sale of some ESB power stations under the CER-ESB Asset Strategy agreement will be rebated to all customers. Some of these generation stations received support through the Public Service

Obligation (PSO) mechanism and following their sale a rebate can be given to all electricity customers in 2009. The value of the PSO related rebate varies by customer category and is shown in Annex I.

While the above contributions have offset price increases for ESB Customer Supply customers, they also benefit customers of all Independent Suppliers. Both rebates will be passed from ESB through the networks companies, EirGrid and ESB Networks Ltd. to suppliers who will distribute them to their customers."

This rebate mechanism was continued for the 2009/2010 tariff year, as outlined in the CER Information Note CER/09/117.

The attached extract, Electricity Network Tariffs Overview, from CER Information Note CER/09/117 outlines the rationale for the continuation of the rebate scheme for LEUs. This was a targeted response to the industrial competitiveness concerns arising during the economic circumstances 14 years ago in July 2009.

"The Government have stated their continuing concern about the impact of energy prices on Large Energy Users (LEUs), who contribute so substantially to employment and are particularly affected by electricity prices. It has therefore been decided that there will be a continuation of the rebate scheme for LEUs.

This should ensure that LEUs do not face any rise in their network tariffs from October 2009. The rebate will comprise: 1.5003 cent/kWh and €8.63/kVA per annum for the period 1st October 2009 to 30th September 2010."

There is no tabular breakdown of these amounts, as the amounts received depended on the energy consumed by each LEU in that period, and the rebates were passed through the network companies, EirGrid and ESB Networks Ltd.

The Commission for Regulation of Utilities (CRU), which has full independent responsibility to regulate network charges, provides a dedicated email address for Oireachtas members. This enables members to raise questions directly to the regulator for timely reply.

If further clarification is required on the above, please contact oireachtas@cru.ie.

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