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Dáil Éireann debate -
Wednesday, 2 Nov 1966

Vol. 225 No. 1

Ceisteanna—Questions. Oral Answers. - ESB Charges.

2.

asked the Minister for Transport and Power if he is aware that the ESB are now asking for returnable contributions from householders in certain cases, together with meter rent plus a special charge, before an ESB supply can be given; and if he will make a statement on the matter.

3.

asked the Minister for Transport and Power the reasons why the ESB are asking applicants for power and light connections to pay, by lump sum, the full capital costs of such extensions.

4.

asked the Minister for Transport and Power if persons in rural areas are at present refused an electricity supply unless they are prepared to pay the capital cost of providing the supply; and, if so, if he will state the reason why and take steps to ensure that this practice is discontinued forthwith.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 2, 3 and 4 together.

Rural electrification has been affected by the general limitation on capital expenditure. Because of the necessity for continuing expenditure on system improvement, because of increases in costs and also because the number of people seeking connection under the post development scheme is greater than was originally estimated, the Board had been finding difficulty in providing connection to all persons seeking supply. In an effort to alleviate the position the Board had offered consumers the option of paying capital contributions, subject to refund later.

I have reviewed the position and I have authorised the Board to proceed with connection in cases where houses are already wired and a firm commitment has been made.

Can the Minister say why, if the ESB have in fact lent £2,500,000 to the Government, they can now say they have not money enough to carry out necessary connection work unless the people who hope to get a connection pay in advance the amount of money necessary to do the work, and why, in addition, they are asked to pay a flat charge? How is that supposed to happen?

Is the Minister aware that people who applied for service have been asked to pay sums like £257 and similar amounts and where does he, or the ESB, expect the ordinary citizen to find this kind of money if the Government or the ESB cannot find it?

The ESB have always been in the habit of offering people desiring connection the alternative of paying the service charge or paying the capital sum. It would take too long to go into calculations or to give the nature of the refund. I will be able to answer that if the Deputy asks a question on it.

In reply to Deputy Tully, the Deputy knows perfectly well that there is a capital programme of some £100 million. The Minister for Finance explained the position to the House in regard to sums lent by State companies and other bodies for reinvestment in the general capital programme. As I have already indicated, the cost of providing rural electrification has gone up, partly because of increased costs here, partly because of increased costs of materials or raw materials brought into the country for that purpose. I have now made arrangements that some 3,000 people who wired their houses will be connected and every effort will be made to continue the programme of rural electrification and to see if it can be accomplished in the light of the capital programme as a whole. It depends on the general financial situation. Eighty-three per cent of the rural dwellers are already connected and that is not a bad effort on the part of the ESB and the Government.

It is ludicrous for the ESB to ask a smallholder in a rural area for a loan of £300 in order that he may get an electricity supply. Is this not tantamount to asking the smallholder for a loan, when the ESB say: We cannot do it because we have not got the money?

Apart from the numerous statements which the Minister has made and which have no relation at all to the question here, will the Minister definitely state that those people who have wired their houses for connection up to now and have been refused that connection because the ESB had not the money to do it or because they could not reach that area due to shortage of money, will get their connection almost immediately?

I could not say almost immediately. You cannot send gangs of people all over the country but, as I said, between now and the end of this financial year an arrangement is being made whereby the Board will proceed with connection in cases where houses are already wired and a firm commitment has been made. The amount of money which would be available for this purpose could not have been predetermined earlier. The work will be done in the course of the next six months.

Would the Minister say if, in fact, in regard to the money which they are asking people to lend them now to do the work on their own houses, they will give a definite date for the repayment of that money and not simply say that a refund will be considered when the capital assets allow it?

In six years it will be paid.

(Cavan): Does the Minister agree that the rate of rural electrification of new areas has been slowed down?

I have already indicated to the Deputy the position in regard to that. As the Deputy knows, the ESB have not been bad in making predictions in regard to the future of consumption in the country. It just so happened that the increase in consumption by domestic consumers and others in the rural districts exceeded, not by a very large amount, but by a small amount, what they envisaged. As a result of system improvement, improvement in trunks and circuits has taken up a larger amount of the total amount made available for rural electrification as a whole than was envisaged. I am asking the ESB why they made a calculation that, apparently, was not as good as others made in the past. The fact is that the calculation was not entirely correct. A larger amount of capital than was envisaged was taken up in system improvement. The amount of money required to connect a further 3,000 householders is now given as a result of a further examination of the total finances of the ESB.

Question No. 5.

(Cavan): Does the Minister think it reasonable that an applicant should be asked to give £1,000 before the house is wired?

Question No. 5.

Now you are borrowing from the ESB or anywhere else you can get it.

Capital sums were always lent by State companies. There is nothing new in this.

I have called Question No. 5.

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