Written Answers Nos. 18-25
18. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources his plans to ensure natural gas is extended to all towns with a population of more than 10,000 or all hub towns and gateways; the towns in these categories that do not have a natural gas supply; and if he will make a statement on the matter. [3668/15]
View answerThe development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a national system for the supply of natural gas that is both economical and efficient.
The Commission for Energy Regulation (CER), is statutorily responsible for all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no statutory function in relation to the connection of towns to the gas network.
In 2006, the CER approved a Gas Connections Policy which enabled assessment of the feasibility of connecting new towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied. The policy provides that the construction and operating costs of connecting a town, or group of towns, to the network are recovered through the consumption of gas and the associated network charges. The distance of a town from the gas network is the major factor determining the costs of building a gas pipeline. The anticipated industrial or commercial gas usage in the town largely determines the revenue from gas network charges which must balance the connection costs. Uneconomic gas pipeline projects would unfairly increase energy costs for all gas consumers.
Gaslink has completed three comprehensive studies to assess nearly 80 towns for connections to the gas network with the result that more than twenty new towns have been connected in recent years. Gaslink constantly reviews unconnected towns for increases in forecasted industrial energy use or where new pipelines or developments may make a town economic for a gas connection. For example construction of a gas connection for Nenagh, County Tipperary has commenced and work will begin later this year on the construction of a gas pipeline to Wexford town.
In terms of towns with a population greater than 10,000, based on the 2011 census data, there are thirty six such towns connected to the network and only six of them are currently without a gas supply: Tralee, Letterkenny, Sligo, Killarney, Enniscorthy and Wexford. Gaslink continues to keep the connection of towns to the gas network under review, having full regard to the CER's network connections policy and I have asked the company to contact the Deputy to discuss this matter in greater detail.
19. Deputy Denis Naughten asked the Minister for Communications, Energy and Natural Resources the steps being taken to support the maintenance of the post office network; and if he will make a statement on the matter. [3669/15]
View answerIt is Government policy that An Post remains a strong and viable company, in a position to provide a high-quality postal service and maintain a nationwide customer-focused network of post offices in the community. The post office network faces significant challenges given the impact of the economic downturn over the last few years, changes in technology and customer retail preferences. The network stands well positioned, however, to become the front-office provider of choice for Government and the financial services sector for both electronic transactions as well as the more traditional over-the-counter transactions.
On 21 December 2014, I announced the appointment of Mr. Bobby Kerr as the independent Chair of a Post Office Network Business Development Group. Mr. Kerr will bring a depth of knowledge and experience in identifying and developing business opportunities for the post office network. The Group, which has commenced its work this week, will engage with the private sector and Government organisations and agencies in exploring potential opportunities for new commercial and Government business for the network. It is anticipated that the group will produce a report this Summer.
20. Deputy Richard Boyd Barrett asked the Minister for Communications, Energy and Natural Resources if he will provide details of the companies that are benefitting from public service obligation funding; the amounts each company received since 2001 broken down by year; and if he will make a statement on the matter. [3913/15]
View answerThe Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for generation constructed for security of supply purposes, including peat generation, and for the development of renewable electricity. It is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers. The PSO levy is vital to enable Ireland to meet its 40% target for electricity generated from renewable sources by 2020, which in turn is important for the achievement of Ireland's 16% EU 2020 target for renewable energy.
The Commission for Energy Regulation (CER) determines the PSO levy which is a charge on all electricity customers without exception. The legal basis for the PSO levy and its method of calculation are set out in Regulations made under the Electricity Regulation Act 1999 (S.I. 217 of 2002).
In accordance with legislation the CER also administers payment of the PSO Levy in accordance with the provisions of SI 217 of 2002. My Department does not keep the records sought by the Deputy.
The annual PSO levy amount for 2014/2015 is €335.4 million. This equates to €64.37 per annum for residential customers, €221.66 per annum for small to medium sized business customers and €34.20/kVA for medium and large customers
21. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the final sale price of Bord Gáis Energy; the revenue this will be utilised for; and if he will make a statement on the matter. [3772/15]
View answerOn 30 June 2014, the sale of Bord Gáis Energy was completed. In line with the share purchase agreement entered into by Ervia, formally Bord Gáis Éireann. The total enterprise value, inclusive of debt, for the sale is €1.1 billion, including a small element of contingent consideration.
With regard to the revenue raised from the sale of Bord Gáis Energy, the Government's consistent position has been that the funds released from asset disposals should be used, to the greatest extent possible, to support stimulus and employment initiatives. How best to leverage those funds is a matter for the Government and I, along with colleague Ministers, will be reflecting on possible options over the coming months.
It has already been decided by the Government that some of the proceeds will be used to fund the Social Housing Strategy, published last November. The Minister for Public Expenditure and Reform announced in Budget 2015 that €400 million of public investment, including from the proceeds of the sale of Bord Gáis Energy, would be made available to fund the establishment of an off balance sheet financial vehicle intended to channel investment funds to the voluntary housing sector.
22. Deputy Richard Boyd Barrett asked the Minister for Communications, Energy and Natural Resources if he will provide details of the criteria used to select the new board members of Ervia; and if he will make a statement on the matter. [3914/15]
View answerThe Public Appointments Service (PAS), in conjunction with NewERA, managed the recent selection process for the filling of vacancies on the Board of Ervia in accordance with the "Guidelines on appointments to State Boards" published by the Government in November 2014. Four vacancies were advertised on the www.stateboards.ie website on 20 November 2014 and candidates were required to submit their application by the deadline of 3 December 2014.
Applications were sought from candidates with skills and experience in one or more of the following areas:
- Senior level in the water utility sector with an international focus, ideally with previous executive level operational experience in the sector;
- Senior level in the gas, electricity or telecoms utility sector with executive level experience of dealing with large scale customer facing systems (helpdesk, billing);
- Senior level in an organisation(s) with more than one thousand employees with executive level experience of dealing with transformational change within that/those organisations; and
- Senior level utility infrastructure (network) financing.
In addition to this experience, it was specified that applicants should also possess:
- Sound business judgment;
- Excellent communication skills;
- Proven ability to analyse information critically and constructively challenge;
- A strong sense of ethics and integrity;
- The ability to work effectively and cohesively as a member of a team; and
- An understanding of good governance practices.
There was a significant level of interest in the posts advertised and on conclusion of a rigorous selection process, involving NewERA's assistance, I made four appointments to the Ervia Board. All nine Ervia Board positions are now filled.
23. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources in view of the employment of 11,695 persons in the renewables sector in Scotland in 2013, the number employed in the renewable sector here; the reason for the variance; and his plans regarding same. [3672/15]
View answerThe 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. In 2013, 20.9% of electricity, 5.7% of heat and 4.9% of transport, were met from renewable sources. In terms of achieving our 2020 targets, to date wind energy has been the largest driver of growth in renewable electricity in Ireland. In 2013, 16.5% of Ireland’s electricity demand was met by wind generation.
The economic benefits of the transition to renewable energy include employment from the construction and maintenance of generation infrastructure as well as from component manufacturing. Employment creation is strongly linked to the level of deployment and hence will be further strengthened as we continue this transition.
An Irish Wind Energy Association member survey in 2014 indicated that 3,400 people are employed in the sector in Ireland. A report published in 2014 by the ESRI and Trinity College Dublin, estimated direct and indirect employment under various realistic scenarios. The report, which estimates multiple thousands of jobs depending on the scenario, is available on the ESRI's website at www.esri.ie .
Additionally, biomass can replace imports of fossil fuels and contribute to job creation in Ireland. The availability of competitively priced locally-sourced biomass has the potential to enhance the opportunities for local employment in the sector. A report commissioned by the Irish Bioenergy Association in 2012 indicated that, in the context of 2020 targets, 3,600 permanent jobs could be created in the bioenergy sector with 8,300 work years available during construction and installation of biomass facilities. The Government recognises the enterprise potential of the sector and additional policies brought forward in the context of the draft bioenergy plan, published in October 2014, will facilitate further employment in the sector.
The Economic Study for Ocean Energy Development in Ireland published by SEAI and Invest Northern Ireland in 2010 identifies the potential of the ocean sector for job and wealth creation. It found that an island of Ireland wave industry could produce 17,000 to 52,000 jobs and an NPV (net present value) of between €4 billion to €10 billion by 2030. Given the current state of readiness of the technology, these projections are unlikely to be achieved in the time-scale envisaged in the report, but they remain valid over a longer time frame.
24. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the overall projected cost of implementing Eircode; and his views that this is the best value for money option available. [3933/15]
View answerMy Department commenced a procurement process for a National Postcode System in 2011. An open and competitive procurement process was conducted in accordance with Department of Finance and EU procurement frameworks.
A pre-qualification questionnaire was issued on www.etenders.gov.ie on 17 January 2011. This invited interested parties to tender for the contract as a postcode management licence holder for a period of 10 years to design, provide, disseminate and maintain a National Postcode System. A number of companies entered and participated in the procurement process. Three parties qualified following Stage 1 of the procurement process. The choice of postcode operator was restricted to those companies who participated in the procurement process. My Department subsequently received two final bids from consortia led by Capita and An Post.
My Department evaluated the final bids and Capita’s bid was found to be the most economically advantageous of the two bids.
On 8 October 2013, the Government approved the appointment of Capita Business Support Services Ireland Limited as the company which will develop, roll-out and operate the National Postcode System.
The overall projected cost of implementing the National Postcode System over the 10 year cycle of the contract is expected to be €27m (ex VAT) with costs covering design, database upgrades, communications and postcode distribution. The cost of the contract will be approximately €16m over the first two years and a further €1.2m per annum for the remaining 8 years of the contract. There has been approximately €1.2m spent on specialist costs arising from the project in the period 2010 to date.
The costs of designing the eircodes and setting up the Eircode Address Database are approximately 9% of total cost. It is expected that 43% of the overall cost over 10 years will be attributed to dissemination, communications and upgrade of public sector databases. The remaining estimated costs, approximately 48% of the total cost, will be accounted for by the acquisition of data from GeoDirectory and costs of maintaining the postcodes.
25. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the discussions he has had with the board and chief executive officer of An Post regarding the post office network; if he will guarantee that no post offices will close this year; and if he will make a statement on the matter. [3774/15]
View answerIt is Government policy that An Post remains a strong and viable company, in a position to provide a high-quality postal service and maintain a nationwide customer-focused network of post offices in the community. Operational matters including the opening and closing of post offices are a matter for the Board and management of An Post. It is worth noting that, while there were 197 net post office closures between 2006 and 2010, there have only been 24 net closures from 2010 to 2014.
As shareholder, I have a strong concern in relation to the ongoing commercial position of the Company and I regularly liaise with the Company including the Chair and Chief Executive Officer in this regard.
The post office network faces significant challenges given the impact of the economic downturn over the last few years, changes in technology and customer retail preferences. The network stands well positioned, however, to become the front-office provider of choice for Government and the financial services sector for both electronic transactions as well as the more traditional over-the-counter transactions.
On 21 December 2014, I announced the appointment of Mr. Bobby Kerr as the independent Chair of a Post Office Network Business Development Group. Mr. Kerr will bring a depth of knowledge and experience in identifying and developing business opportunities for the post office network. The Group, which has commenced its work this week, will engage with the private sector and Government organisations and agencies in exploring potential opportunities for new commercial and Government business for the network. It is anticipated that the group will produce a report this Summer.
