Dáil Éireann debate -
Thursday, 19 Oct 2000

Vol. 524 No. 4

Written Answers. - Electricity Generation.

Seymour Crawford

Question:

31 Mr. Crawford asked the Minister for Public Enterprise if she has satisfied herself that sufficient electricity is available to supply peak-time demand over the coming months particularly in the context of the ESB's decision to lease five emergency generators from the United States; if she will speed up deregulation in order to facilitate new entrants so that supply will be guaranteed; and if she will make a statement on the matter. [22457/00]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 19 and 31 together.

Economic growth in recent years is reflected in high levels of growth in demand for electricity by all sectors of the economy, averaging around 6% per annum.

The chairman of ESB has given me a categoric assurance that there will be no shortfall in the electricity supply this winter.

Current levels of growth in demand for electricity will require the provision of between 150 and 200 of additional capacity each year for the foreseeable future, by means of new plant or imports over the interconnector.

An additional 160 generating unit came on stream at Poolbeg earlier this year and the new 120 peat plant at Edenderry will come into operation in the next few weeks, six months ahead of schedule.

The decision by ESB to lease five 22 generators is an operational decision by the company designed to give it maximum flexibility in meeting demand this coming winter.

As a result of the Electricity Regulation Act, 1999, introduced by me, about 30% of the electricity market is now open to competition. This will rise to 40% in 2002, with full market opening in 2005. This accelerated approach to market liberalisation means that we are, in fact, going beyond the minimum requirements for market opening laid down in the Electricity directive.

Prospective power producers can apply to the Commission for Electricity Regulation for the necessary authorisations and licences to build new plant to supply eligible customers. In view of the high level of interest shown by prospective entrants to the electricity market, there is every reason to believe that sufficient capacity will be built to meet market demand in the short to medium term.