Dáil Éireann Debate, Tuesday - 8 February 2005
75 Mr. Naughten asked the Minister for Communications, Marine and Natural Resources his preferred options for the future development of the provision of electricity services throughout the country; if, in the context of deregulation, he has made specific policy directives; and if he will make a statement on the matter. [3654/05]
View answer309 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources his preferred options for the future development of the provision of electricity services throughout the country; if, in the context of deregulation, he has made specific policy directives; and if he will make a statement on the matter. [3975/05]
View answerI propose to take Questions Nos. 75 and 309 together.
In terms of preferred options for electricity market development, my objective is to deliver a fully open, competitive, all-island market in line with the recently published North-South development framework with a quality assured, secure supply at reasonable prices. In the broader context, I wish to see a well interconnected market, both east-west and North-South, underpinning EU policy on interconnection and with maximised usage of alternative or renewable energy sources.
The regulatory framework and unbundling of the transmission and distribution networks are key tools to deliver open and competitive markets to the benefit of consumers and the national economy. The review of the electricity sector which I have announced and, in particular, the element dealing with market structures and issues such as ESB structure and sector dominance will also inform future policy direction.
We are continuing to build upon the significant progress made to date in market liberalisation. Under the regulatory oversight of the Commission for Energy Regulation, CER, market opening is proceeding on a phased basis with statutory effect given to EU directives on the common rules for the internal electricity market. I have just made regulations to give effect to EU electricity directive 2003/54/EC. This directive strengthens the unbundling provisions of the transmission and distribution system operators, explicitly provides for enhanced levels of consumer protection, including the right of supply in quality terms and at reasonable prices, sets out a timetable for market opening and requires member states to ensure proper regulation by independent national regulatory authorities. The current regulatory framework in Ireland already takes account of many of the provisions of this new directive and the new regulations will augment the measures already in place.
On 19 February next, the market will be fully open to competition. From that date, all customers will be eligible to source their electricity from any licensed supplier and the entire market becomes contestable. This is over two years in advance of the EU directive requirements.
With regard to policy directions, currently I have certain limited statutory powers to give directions to the CER relating to electricity trading arrangements solely. This power was exercised by my predecessor in July 1999 and provided for the current electricity trading system. In the interests of the proper and effective regulation of the electricity and gas markets, I am proposing, in line with other regulated sectors and with Government approval, to take powers to issue policy directions of a general nature to the CER. Such a provision is included in the Energy (Miscellaneous Provisions) Bill, which is being drafted by the Office of the Parliamentary Counsel.
