Vol. 449 No. 4
220 Mr. Killeen asked the Minister for Transport, Energy and Communications the role he and his Department envisage for power purchase agreements in the provision of electricity in the future; and the implications for staffing in power stations. [4009/95]
In May 1993 the Government approved, as part of an overall restructuring of the electricity industry, the establishment within ESB of a power procurement function which is separate from ESB's generating, national grid and customer service functions. This is intended to increase the level of transparency in ESB's operations both to encourage greater efficiency and to anticipate the requirements of the draft directive on the liberalisation of the electricity industry which is currently under discussion at the Council of Ministers. As part of this process the power procurer will in the future have a formal agreement — a power purchase agreement — with each generating unit on the system for the purchase of electricity. This will specify such things as the price to be paid for the electricity, incentive payments for increased availability and penalties for failure to meet contracted obligations.
Power purchase agreements do not in themselves have implications for staffing in power stations. This issue is being addressed in the tripartite Cost and Competitiveness Review currently under way in ESB. However, efficiency levels achieved through this process will naturally be reflected in the various power purchase agreements.
