I propose to take Questions Nos. 32 and 71 together.
As the Deputies may be aware, the European Communities (Internal Market in Electricity) Regulations 2000, S.I. 445 of 2000, made in December 2000, provided for the separation of the operation of the transmission system from the rest of ESB into a newly formed independent State owned company. This separate State company, Eirgrid, was formally incorporated in February 2001 but as yet it is not discharging the functions of transmission system operator.
The delay in establishing Eirgrid as a fully functioning and operational entity is attributable to various problems and disputes which arose in the course of the complex negotiations ensuing since the making of the regulations. However, despite the delay, the Eirgrid model, once in place, will be effective and beneficial to all players in the market and I therefore announced my intention, on 10 March 2004 having reviewed the situation, to retain Eirgrid as the independent TSO.
In order for Eirgrid to be able to operate the transmission system, the governing regulations provided that an agreement was to be made between Eirgrid and ESB, which would set out the respective roles and responsibilities as between Eirgrid, in its capacity as TSO, and ESB, in its capacity as owner of the transmission network.
The regulations also provided that the practical arrangements regarding the transfer of staff, rights, liabilities and contracts from ESB to Eirgrid be put in place in the form of a transfer scheme.
My Department has no direct role in the making of the infrastructure agreement or transfer scheme. These are a matter for the companies involved to agree, with the negotiation of both overseen by the Commission for Energy Regulation.
Neither the infrastructure agreement nor the transfer scheme is yet in place. It has been difficult to bring the process of operationally establishing Eirgrid to a satisfactory conclusion in the absence of a chief executive officer of the company being in situ which has been delayed through contractual difficulties.
I hope these contractual difficulties have been resolved and I can advise the Deputies that a revised draft CEO contract is currently with the company for determination subject to my consent and that of the Minister for Finance. I am disappointed that three years after its formal incorporation as a company, Eirgrid is still not up and running as the TSO and, as shareholder, I wish to see a speedy resolution to the outstanding issues. My Department is working closely with the company to facilitate progress. I expect all parties to the negotiations to use their best endeavours to bring this process to a speedy conclusion and to expedite the operational establishment of the company.