Dáil Éireann Debate, Tuesday - 8 February 2005
95 Dr. Upton asked the Minister for Communications, Marine and Natural Resources if he will report on the likely impact of full market opening for electricity on 19 February 2005; his plans for a second North-South interconnector on the all-island electricity market; and if he will make a statement on the matter. [3606/05]
View answerLiberalisation of the electricity market is well under way and has proceeded on a phased basis since February 2000 under the regulatory oversight of the Commission for Energy Regulation, CER, the independent regulator for gas and electricity.
In accordance with the Electricity Regulation Act 1999 (Eligible Customer) (Consumption of Electricity) Order 2003, on February 19 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. Scope will exist for all customers, household and non-household alike, to seek out keener prices in the competitive market. This is over two years in advance of the July 2007 deadline set down in electricity directive 2003/54/EC.
To date, the partial opening of the market has successfully broadened customer choice. The latest information available to me indicates that at the end of 2004, some 2,342 customers out of 13,500 eligible customers had switched supplier. In terms of eligible customers, as things stand all large customers and many small and medium-sized businesses are free to choose their electricity supplies from licensed suppliers other than ESB.
The "green" market has been fully liberalised since February 2000 and over 40,500 customers out of the electricity customer base have so far chosen "green" suppliers. My Department has itself changed to a "green" supplier, moving away from the ESB following a competitive process.
Indications are that at the end of 2004, the independent supply sector had increased its market share to some 33% by volume. The fully open market will encourage new entrants and provide existing players with opportunities to increase their market share. I look forward to seeing real competition taking root and flourishing in this sector for the benefit of all customers.
Turning to the plans for a second North-South interconnector, at a bilateral meeting in November 2004, Mr. Barry Gardiner, MP, the Northern Ireland Minister for Enterprise, Trade and Investment, and I endorsed plans put forward by the CER and the Northern Ireland Authority for Energy Regulation for the construction of a second interconnector. The proposed interconnector will provide increased system security and reliability. It will be a positive step towards further developing competition and will facilitate the development of a fully functioning single electricity market.
As a first step, the transmission system operators North and South have been requested to draw up a plan and to revert to the regulators by May 2005 with details of route options, ownership structures and other technical issues.
