Vol. 400 No. 9
58 Mr. Belton asked the Minister for Energy if he has satisfied himself with (a) the buy-in price paid by the ESB for electricity generated by private producers and (b) the stand-by charges applied by the ESB to those who seek to generate electricity for themselves as a by-product from their boiler system.
I am satisfied that the current price paid by the ESB for electricity purchased from private producers is fair and reasonable. The principle of "avoided cost" is generally applied in determining the price paid by an electrical utility for bought-in power, that is, the price paid by a utility for a unit of electricity is the saving which the utility makes by not generating such a unit itself. The current price paid to private producers, which is about 3p per unit, was settled some years ago and has not been reduced even though the ESB's own fuel costs have decreased substantially in recent years. I am, however, keeping the position under review.
The second part of the Deputy's question relates to the stand-by charges applied by the ESB to those involved in what is usually referred to as combined heat and power (CHP). The appropriateness or otherwise of these charges is one of a number of subjects relating to CHP development which is currently being examined by a working group in my Department whose report I expect to have shortly.
