Vol. 409 No. 3
1 Miss Flaherty asked the Minister for Energy if he is concerned that proceedings are now being taken by the EC against Ireland because of the existence of a monopoly situation in electricity supplies here; and if he will make a statement on the matter.
11 Mr. Creed asked the Minister for Energy whether he has made progress in relation to the establishment of an electricity interconnector especially in view of the EC investigation into the ESB monopoly situation; and if he will make a statement on the matter.
32 Mr. Crowley asked the Minister for Energy whether he has made progress in relation to the establishment of an electricity interconnector especially in view of the EC investigation into the ESB monopoly situation; and if he will make a statement on the matter.
46 Mr. Flanagan asked the Minister for Energy whether he has made progress in relation to the establishment of an electricity interconnector especially in view of the EC investigation into the ESB monopoly situation; and if he will make a statement on the matter.
I propose to take Questions Nos. 1, 11, 32 and 46 together.
No proceedings against Ireland have been issued by the EC Commission about the legal status of the ESB. The Commission's intention to scrutinise the Community's electricity producers relates to its concern that some member states are protecting their own electricity utilities from competitive importation of electricity across Community borders. This situation is not relevant to Ireland at present as there is no interconnector in operation to engage in such trade.
Ireland was responsible during its Presidency for getting agreement on the Electricity Transit Directive which facilitates the exchange of electricity between utilities. In the event of an interconnector being built there would be opportunities for both the import and export of electricity as well as improved security of supply. Discussions are taking place between the ESB and the National Grid Company in the UK about the feasibility of such an interconnector.
The question of amending the existing legislation both in relation to the ESB's monopoly position in Ireland and to take account of EC developments regarding competition is considered regularly in the context of ensuring the best possible service for all Irish electricity consumers.
I saw a printed matter indicating that we were amongst almost all of the countries in the EC against whom proceedings were being initiated as a result of anomalies. Is the Minister stating that that is not so?
In March this year the EC Commission issued a press release in which they announced that under competition law it intended to open proceedings against ten member states which maintain exclusive import and export rights for electricity and gas. Some member states have rules which grant monopoly rights in respect of cross-border trade in these fields. Despite press reports the Commission so far has not started any proceedings. If they do decide to proceed the action would initially take the form of a letter to the ten member states asking them to show that their energy monopolies conformed to competition rules of the Treaty.
On receiving responses from these member states, the Commission will examine the situation further to see if there is a basis for further action. Only then will the Commission consider, after exhaustive examination of each case, whether a complaint is warranted and whether action should be taken in the European Court.
Could the Minister indicate more clearly to the House his position in relation to providing an interconnector service for the Irish electricity consumer?
As I have informed the House on a number of occasions, the first priority is to achieve the construction of a gas interconnector. Preliminary work is proceeding on the question of following on with an electricity interconnector. Contact has been made with the UK authorities in regard to that matter. There was a hold-up because of the privatisation programme which was under way in Great Britain but now the distribution company has been established over there and the ESB have been holding discussions with them. It is the next priority after we achieve the gas interconnector, but preliminary work and investigation is proceeding. We have not reached the stage yet where we will be carrying out a viability study.
In the context of an area over which he has total control, is the Minister satisfied that anti-competitive practices are not in existence here, and what efforts has he made to ensure that independent suppliers have an opportunity to develop and to get a reasonable price from the EC for the products they produce?
The legislation in this country gives the Electricity Supply Board the monopoly of the distribution of electricity.
I am talking about producers. We will come back to it later. There are other questions on it.
