Dáil Éireann Debate, Wednesday - 15 January 2014
459. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if he will provide evidence that placing electricity pylons underground will add 3% per annum for 50 years to domestic electricity bills. [1270/14]
View answerDecisions regarding the construction of the electricity transmission infrastructure are operational matters for EirGrid. Apart from the tariff charged by BGE to its residential gas customers, the Commission for Energy Regulation (CER) no longer regulates final retail prices in either electricity or gas. The CER does regulate the network component to be charged within retail electricity and gas prices.
I am advised by the Commission for Energy Regulation (CER) that it estimates that the additional cost of implementing an underground cable solution for the main Grid25 projects would increase the capital costs of the projects from €1.4 billion to €3.12 billion. I am further advised by the CER that this estimate is based on certain assumptions and the estimated increased costs are conservative and could be higher. The CER would be happy to provide the Deputy with a more detailed explanation of their calculations which, the CER believes, would add an additional 3%, per annum increase in customer tariffs over the coming 50 years. I would be happy to request the CER to provide the Deputy with the relevant material. Finally, I should mention that the CER have also highlighted that the increased costs giving rise to the estimated 3% increased are capital only and that higher operational costs would also be anticipated for any underground solution.
