asked the Minister for Transport and Power what action, if any, he proposes to take arising from the Fletcher Report on the ESB; and if he proposes to take any steps to prevent further increases in ESB charges.
Ceisteanna—Questions. Oral Answers. - Fletcher Report on ESB.
93.
Mr. O'Donnell
The proposals and recommendations in the Fletcher Report may be divided into three broad categories as follows:
(a) Long-term recommendations or suggestions of a technical nature for consideration in relation to future ESB policy in such fields as inter-connection with other systems particularly in the context of a nuclear station, marketing strategy, pumped storage schemes and fuel policy.
(b) General recommendations for a new financial regime for the ESB, which would require legislation.
(c) Short to medium term recommendations aimed at possible reductions in costs.
An examination has already been made of the short to medium term recommendations aimed at possible cost reductions and to the extent that these recommendations can be implemented, action has already been taken or is in progress. I must say, however, that no cost reductions can be expected under this head which would measurably affect the price of electricity.
The long-term recommendations are at present under study. The recommendations relating to a new financial regime would not result in savings to the community. They would, if adopted, simply involve transfers and counter transfers of costs between the ESB, the Exchequer and local authorities.
The general conclusion to be drawn from the report is that subject to certain areas in which corrective action has or is being taken, the ESB is operating efficiently and that the scope for cost reductions in the short-term is minimal. In these circumstances the cost of supplying electricity must be met by the consumers and the price of electricity must be determined accordingly. The only alternatives to this are to transfer part of the cost to the taxpayer or to make the ESB insolvent.