Vol. 437 No. 1
11 Mr. O'Malley asked the Minister for Transport, Energy and Communications if, in view of the overcapacity of the ESB, he will refuse its latest application for a price increase and insist that it achieve a greater degree of efficiency and cost effectiveness in its operations.
71 Mr. Gilmore asked the Minister for Transport, Energy and Communications if he has received a new application from the ESB for an increase in prices to fund proposed capital developments; if so, the increases sought; if he intends to sanction them; and if he will make a statement on the matter.
I propose to take Questions Nos. 11 and 71 together.
As the House is aware, the ESB has applied for an increase in electricity process primarily to finance its proposed capital expenditure programme. ESB's most recent proposals was for an initial increase of 3.5 per cent followed by regular annual increases related to inflation.
It has been decided to examine the ESB's cost base and capital expenditure programme in detail before taking a decision on the price increase application.
Does the Minister agree that if there is overcapacity in the ESB at the moment and if one of the benefits arising from a successful conclusion of the talks on Northern Ireland was a sufficient degree of peace to enable the interconnector to be reopened, the overcapacity would be even greater and therefore there is no need for further substantial capital work? In these circumstances would he not advise the ESB to postpone any request for a further increase in the price of electricity, which, at the industrial level at least, is prohibitively high for many users?
Until the examination of the cost base and the capital expenditure programme has been looked at in detail, no decision will be taken on a price increase. A stand alone electricity grid like ours requires some overcapacity to meet peak demands and there are a number of ways of doing that. If the interconnector between ourselves and Northern Ireland were to reopen it would help the situation, but it would certainly not address future need because there is an ever increasing demand for electricity in our economy, reflecting a level of output growth we all welcome. The question is what is the best and most effective way of providing for that. When the examination has been completed and the assessment made we will be in a better position to see what capital expenditure programme is appropriate. The question of the opening of the interconnector is under continuing review. As the Deputy knows, security issues come into place in determining that decision. Should the interconnector come into operation again it would improve cash flow in the ESB by £1.5 million providing extra reserves for the ESB. Were it to be there long term it certainly would be of benefit.
I thank you, a Leas-Cheann Comhairle, for taking No. 11 to facilitate me, but I would point out that after one hour and 25 minutes the House has completed only 11 questions.
Plus 43.
The other 43 were all repeats of one. Perhaps the Committee on Procedure and Privileges might look at this situation because Question Time is meaningless if only a small number of questions can be taken in such a relatively long time.
That concludes questions for today.
