Dáil Éireann Debate, Wednesday - 5 July 2006
28 Mr. Crawford asked the Minister for Communications, Marine and Natural Resources his proposed role for the ESB for the generation and transmission of electricity in the future; and if he will make a statement on the matter. [26570/06]
View answer38 Mr. Naughten asked the Minister for Communications, Marine and Natural Resources his preferences for the future ownership of the electricity grid; and if he will make a statement on the matter. [26577/06]
View answer54 Mr. Kehoe asked the Minister for Communications, Marine and Natural Resources if discussions have taken place with ESB management or staff regarding the future development of the ESB in conjunction with increased electricity demands and deregulation; and if he will make a statement on the matter. [26567/06]
View answer59 Mr. Naughten asked the Minister for Communications, Marine and Natural Resources his preferred options for the future role of the ESB in the energy market at both generation and transmission levels; and if he will make a statement on the matter. [26578/06]
View answerI propose to take Questions Nos. 28, 38, 54 and 59 together.
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 forthcoming Energy Policy Green Paper. The Green Paper, informed by the Deloitte & Touche report, among other contributions, will confirm the need for change, over time, in the electricity sector and considers the role of ESB in that regard.
As I indicated recently, the Government recognises the strategic value of maintaining the ESB as a strong and commercially viable company into the future. The retention of natural monopoly networks including the grid, in State ownership, is also a core policy tenet for the Government. I have stated that the Government does not in any circumstances favour the privatisation or atomisation of ESB. EirGrid has been fully established operationally as the national independent Electricity Transmission Operator with effect from 1st July.
Future market structures will need to take account of the reluctance of independent generators to enter the market on foot of the perceived and actual dominance of ESB. They will also reflect the creation of the Single Electricity Market from July 2007 under the all-island energy framework. The Single Electricity Market will be both a driver and enabler of further change.
In regard to my contacts with ESB Board management and staff, these are an ongoing part of my role as Minister, and that of my Department, with responsibility for the corporate governance of the ESB. On the particular issue of the future development of the company, I can confirm that representatives of the ESB unions, along with ICTU representatives, last week made a presentation to me on their joint submission to the Deloitte & Touche Review. I expect that both management and staff will take the opportunity presented by publication of the Green Paper to provide further input on this issue.
