Darren O'Rourke (Meath East, Sinn Fein)
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17. To ask the Minister for Communications, Climate Action and Environment further to Parliamentary Question No. 111 of 4 May 2023, the specific provisions under European Union law which require the separation of ESB's generation and retail supply arms specifically, irrespective of ESB's role as the Distribution System Operator (DSO). [26426/23]

Eamon Ryan (Dublin Bay South, Green Party)
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There is both EU and domestic law available at the links below in relation to this matter. The relevant EU legislation is – Directive 2019/944 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast)

Specifically Article 35 of the Directive relates to unbundling of DSOs

“1. Where the distribution system operator is part of a vertically integrated undertaking, it shall be independent at least in terms of its legal form, organisation and decision-making from other activities not relating to distribution. Those rules shall not create an obligation to separate the ownership of assets of the distribution system operator from the vertically integrated undertaking.

2. In addition to the requirements under paragraph 1, where the distribution system operator is part of a vertically integrated undertaking, it shall be independent in terms of its organisation and decision-making from the other activities not related to distribution. In order to achieve this, the following minimum criteria shall apply:...”

Irish legislation of relevance includes – Electricity Regulation Act 1999 as amended, as well as Part 2 of SI 280/2008 which relates to separation of the functions of the Board (ESB).

Section 14(13) Electricity Regulation Act 1999 states

(b) Subject to such arrangements as the Commission may approve in the interest of economic efficiency in relation to the discharge by the holders of licences of their functions under paragraphs (f)and (g)of subsection (1), the Commission shall ensure that the licence granted pursuant to the said paragraph (g)shall contain provisions which—

(i) secure the complete and effective separation of that part of the business of the licensee as relates to any of the operation, maintenance and development of the distribution system (or any part thereof) from all other parts of its business, and

(ii) require the preparation of separate accounts in respect of that part of the licensee’s business which relates to the operation, maintenance and development of the distribution system (or any part thereof).