Dáil Éireann debate -
Tuesday, 2 Dec 2003

Vol. 576 No. 1

Written Answers. - Electricity Generation.

John Cregan

Question:

215 Mr. Cregan asked the Minister for Communications, Marine and Natural Resources the situation on the import and export and movement of electricity; the movements which are taking place; if electricity from the North is being imported; if it is more expensive than that produced by the ESB; if so, the details of the contact with Northern Ireland Electricity; and if the price of electricity is set or determined by the cost of the imported product. [29266/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

The electricity systems between North and South are linked by interconnectors at three points. The main interconnection is between Louth and Tandragee, County Armagh, which has been upgraded from 280MW to 400MW since December 2001. In addition to the main interconnector, there are two standby interconnections at Letterkenny and Strabane and Corraclassy and Enniskillen, which are largely used to facilitate network support.

Some of the capacity on the interconnectors is reserved for contingency purposes to facilitate transfer of power reserves between both systems in emergency conditions. At present, 300MW of the transfer capacity North to South is offered to the market. Usage of the interconnector in the South-North direction is limited as a result of network conditions in Ireland and usage in the North-South direction is limited as a result of system conditions in the North. For the 12 month period 1 November 2002 to 31 October 2003 an analysis of physical flows shows that the average North-South flow is 58.2 MWh/half hour and the average South-North flow is 0.672 MWh/half hour.

However, as a means of mitigating the problems caused by constraints in physical capacity on the South-North direction, the regulators and transmission system operators in both jurisdictions agreed the introduction of a system of "superpositioning" with effect from 1 April 2003, which allows for parties to trade between systems on a contractual basis without the physical transfer of electricity across the interconnector being necessary. This ensures that potential crossBorder trades beneficial to both jurisdictions are not hindered.

The details in terms of prices of market trades are the contractual business of the firms involved and consequently price information is not publicly available. However, imported electricity itself would not set or determine the tariff for electricity customers in the Republic, as determined by the regulator. Furthermore, I am advised by ESB that following the price increase announced by the Commission for Energy Regulation in September last, the price of electricity for domestic customers in the South will be up to 5% cheaper than those obtaining in Northern Ireland.

As the Deputy may already be aware, ESB has recently signed an energy and capacity contract with Northern Ireland Electricity plc. This positive security of supply measure secures 167MW of capacity, which has been contracted on a priority basis to meet customer demand here. The initial term of this contract is due to run up until 30 June 2005 and may be extended up until autumn 2006.