Vol. 623 No. 2
22 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources if, in view of his recent comments that the ESB should not be broken up into smaller parts or atomised, he will publish the Deloitte & Touche report on the ESB that he commissioned and is in possession of; when the energy Green Paper will be published; and if he will make a statement on the matter. [26622/06]
24 Mr. Crawford asked the Minister for Communications, Marine and Natural Resources when he expects to publish the Deloitte & Touche report; the bodies, groups, persons or agencies who have to date had sight of this report; if he expects the contents of the report to be reflected in proposed legislation; and if he will make a statement on the matter. [26571/06]
44 Mr. Stanton asked the Minister for Communications, Marine and Natural Resources the reason he has not published the Deloitte & Touche report; if he has set a date for publication; the groups, persons or bodies who have to date had access to part of its contents; and if he will make a statement on the matter. [26579/06]
91 Mr. Eamon Ryan asked the Minister for Communications, Marine and Natural Resources when he intends to publish the Deloitte & Touche report with regard to dominance in the electricity market; the discussions which have taken place to date within the Government with regard to the report; and the consultation or action plan which is envisaged following publication of the report. [26590/06]
I propose to take Questions Nos. 22, 24, 44 and 91 together.
In my recent address to the Energy Ireland conference, I stated that the Government did not favour the privatisation or atomisation of the ESB in any circumstances. Future possible directions for the electricity sector, taking into account all relevant considerations including the development of the all-island single electricity market, competition, security of supply, generation adequacy and consumer needs, will be articulated in the energy policy Green Paper, under preparation in my Department, which will be finalised shortly. I intend to publish the report by Deloitte & Touche into the electricity sector in the wider context of that Green Paper. The Department of Finance and the Commission forEnergy Regulation have received copies of the Deloitte & Touche report in confidence.
This is one of a series of reports the Opposition has been eagerly awaiting in recent months. Why did the Minister not publish the Deloitte & Touche report while the Dáil was sitting? He is creating a situation where he can pre-empt the discussion and lay down his policy and, because the House will not be in session, we are at an incredible disadvantage. The report has cost taxpayers millions of euro, as far as I am aware, and appears to have been leaked in a selective way to certain journalists. For example, an article published last February claimed that Deloitte & Touche advocated splitting up the ESB into three companies, a transmission company, a power generation company and a customer supply company, and reducing its market share to 40%. Will the Minister confirm that that is the basic tenor of the report?
The Minister's reply refers to the energy Green Paper. When will that be published? The Minister has been lethargic, as has his predecessor, Deputy Dermot Ahern, on so many areas of policy — energy is as bad as broadband and digital radio and television. The United Kingdom Government is moving on to its third energy review over the past three or four years. Given the sky-rocketing price of oil, up to €74 or €75 a barrel, is it not incumbent on the Minister to publish the energy Green Paper and present it to Dáil Éireann in session to ensure we can have a proper public debate on it?
What is the Minister's reaction to today's news that the ESB is seeking to increase its prices by an astonishing 20% this year? Every summer, when the Dáil is not in session, the Labour Party, Fine Gael and the other Opposition parties hear about all these reports, which are usually followed by an announcement from CER around late August, again usually pre-empted by Government.
Is the request from the ESB that prices be increased again by 20% from early next year not shocking? Does it not mean that the Minister will have personally overseen the highest energy price increases in decades — 61% and rising — during the period of this Administration? Will that not be part of the Minister's legacy? We heard the Taoiseach blathering on this morning about the billions of euro spent on the health system, when we know more billions must be spent and additional manpower provided. That is the point, given that Ireland is rated 25th out of 26 in Europe in terms of health provision. Is it not a fact that energy prices are escalating, there is little competition in the market, there is a major report on the ESB and we are waiting for an energy Green Paper and a White Paper, yet nothing is happening?
I am aware that the Deputy does not know what is happening but because he is not aware of what is happening——
I am not the Minister. I would love to be but I am not.
I am not criticising the Deputy, I am saying that just because he does not know what is happening does not mean that nothing is happening.
Murphy's law.
Does the Minister know what is happening?
I would not like anyone to think that the diligent officials in my Department who are working on the energy paper are doing nothing. They are committed to this issue and have put in long hours with me over a considerable period to produce an energy paper that will be well worth the wait for Deputy Broughan and the other Deputies.
When?
Over the coming weeks.
In the first week in August.
Is the Deputy going on holidays?
If I can be around the first week in August, so can the Deputy.
If the Minister tells me I will be around.
As soon as I can fix a date. It should be around that time.
The Minister will do it that week.
I will probably be working throughout August. The Deputy should not make any holiday plans for August.
I will go in July.
Down to Wexford.
The Deputy raised a number of questions, including the reason I did not publish the Deloitte & Touche report before now.
Before the Dáil rises.
The reason is that it is an important part of the energy paper but it is not the be all and end all. The Deloitte & Touche report is part of that. We have used it as an input in terms of the electricity sector in the overall energy paper we are producing. That is the reason it has not been published before now. It will be published some time after the energy policy document is published. It did not cost millions of euro. I do not have the figure available to me but it cost just over €1 million. It is a quality report, as I said previously.
The Deputy talked about selected leaks. The one aspect that has frustrated journalists, whatever about the Deputy, is that there have not been any leaks about the Deloitte & Touche report. The article the Deputy refers to that appeared last February is incorrect but it was a good piece of journalism in that they went into the website, examined the terms of reference for the study Deloitte & Touche eventually got and made a number of assumptions which were not accurate.
Regarding the ESB seeking a 20% increase, that is a matter for the Commission on Energy Regulation. Neither the ESB nor the CER will consult me on that matter. The levels of increase in electricity and gas prices are reflective of what is happening with fossil fuels generally but there is no doubt there is room for savings in terms of reducing costs and increasing efficiencies in the ESB. The level of efficiency of a variety of the plant in the ESB leaves a lot to be desired — it is not near the European average. There are labour practices in the ESB that add to the cost for the consumer and I am sure the Commission on Energy Regulation will take all those into account, as it did last year. I look forward to the Deputy's full support in ensuring we reduce ESB costs as much as we can——
I will do so if the Minister follows Labour Party policy.
——to make it much more efficient and make the market much more competitive when we move that forward.
Is the Minister agreeing with the Labour Party?
Would it not have been wiser to publish the Deloitte & Touche report thereby giving everybody, including the public and journalists, equal access to it? They would not have had to speculate if that had been done, and it is easy to speculate. The Minister might be able to resolve some of that speculation now. For example, what is his policy direction on the future ownership of the grid? Will it be kept in public ownership and will there be any change in that? For instance, in respect of any future agreements entered into in the aftermath of the need to introduce more competition, is the Minister satisfied that the security of the grid will be maintained given that that is of absolute necessity? Will he further indicate whether he and his Department have learned from the experiences of Eircom regarding investment in infrastructure and providing for the future? What are those experiences and how will the Minister deal with them?
Having read the Deloitte & Touche report, is the Minister confirming that nobody has seen the report other than the two bodies to which he referred? Is that true? Is the Minister certain about that because if it were not true it would be very embarrassing for many people, including and most importantly the Minister?
I would not be so foolish as to make a statement like that on any report that has had this type of circulation, but all the copies of the Deloitte & Touche report are personalised to the individuals and organisations that received them. To my knowledge they are all still accounted for. However, I would not——
They would not have revealed it.
——predict that nobody else would have seen it. Many journalists have asked me about its contents. The Deputy can ask the journalists. They have heard nothing from me.
On ownership of the grid, security of supply, the experience with Eircom etc., in my Energy Ireland speech a few weeks ago I clearly stated the importance of maintaining the grid and the transmission lines in public ownership, whether that is in a semi-State company like the ESB or in a separate company. The Government is determined they will stay in public ownership and will not go to a private company at any stage. From the point of view of security of supply and competitiveness it is extremely important that no single player has control over the transmission system to block others out and prevent competition etc. I can give the Deputy absolute assurance that there is no fear of the grid going into private ownership at any stage.
I warmly welcome what the Minister has said and that the company will not be privatised or atomised especially considering what my colleague said about Eircom. I ask about rising electricity costs. Will the Minister consider giving CER some sort of strong consumer mandate? To put it the other way around will the Minister give consumers a role in CER either in terms of a consumer panel as proposed in the report of the Joint Committee on Communications, Marine and Natural Resources on energy before these energy price decisions can be made? In other words will the Minister amend the Energy (Miscellaneous Provisions) Bill as I requested on Second Stage to give consumers a role?
Has the Minister discussed the role of the ESB in the all-island market with the Northern Ireland Minister, David Hanson MP, who criticised the role and the more than 60% market share of the ESB in the Southern part of the market after next summer? Did the Minister make any similar comments to him about Viridian, the old Northern Ireland Electricity company which also owns a network and operating assets? In other words has the Minister discussed the future of the ESB with the Northern Ireland Minister following his criticisms of ESB in the context of the operation of the all-island market? Given the Minister's view that it should not be broken up or atomised and that structural reforms are needed, how does he envisage the generation side reaching the point of 40% or more in the all-island market where we could have true competition at the marginal cost level?
On consumers' interest, there are two aspects to the remit of the Commission for Energy Regulation, CER. One is competitiveness, which encompasses various aspects, and the other is consumer protection. I believe it has considered establishing consumer panels. However, more importantly, the national consumer agency, recently announced by the Minister for Enterprise, Trade and Employment, will have a role in the current application for a price increase. The ESB seeks an increase from CER, which puts it forward for public consultation. One of those consulted, representing the consumer interest, is the new national consumer agency.
Written Answers follow Adjournment Debate.
