asked the Minister for Transport and Power if he is aware of the substantial and exorbitant contributions being levied by the ESB on persons building new houses in rural areas where the planned post-development canvass was completed; and if there are any proposals before his Department to subsidise such contributions.
Ceisteanna-Questions. Oral Answers. - Electricity Charges.
42.
In rural areas where the final planned post development scheme is completed subsidised terms are not available for new connections under the rural electrification programme. New connections in such areas may be required to make a contribution related to the actual cost of the network extension required.
I have asked the ESB to prepare a comprehensive report on the future position in relation to rural electrification and I will review the matter on receipt of the board's report.
Does the Minister expect to get this report shortly from the ESB?
I do not think so. I think it will be in the autumn. I could not say exactly when it will be ready. It will be a couple of months before it is complete.
Is the Minister aware that the capital contributions required by the ESB in building new houses are adding considerably to the cost of building in rural areas?
I would accept that when an area has been closed to subsidy under the rural electrification scheme the costs will be higher than if the scheme of subsidy still existed. If we were to continue to subsidise the new work being done it could only be to the detriment of our existing consumers. No decision has been taken by the Government.
When this report is made available will the Minister make its effects retrospective?
I could not give any undertaking about decisions to be reached by the Government on receipt of this report of the ESB.
Would the Minister ask the ESB in view of the importance of this matter to the country to submit their report as a matter of extreme urgency?
I have done that but the Deputy must appreciate that what we are dealing with now are the areas that are closed for subsidisation all over the country since rural electrification started over 30 years ago. These are small pockets and small areas, individual houses in many cases, which did not accept electricity when it was offered to them on two or three occasions. It will be a very detailed, complicated and expensive report to produce.
Is the Minister aware that he is speaking in many cases of areas which are within a two or three miles radius of a provincial town?
I am speaking of the whole Twenty-six Counties.
This incorporates areas within two or three miles radius of provincial towns.
I am talking about when rural electrification finishes. The present scheme for rural electrification finishes on the 31st March next year. I am concerned with the problems which will be faced by people who are not connected after that date.
43.
asked the Minister for Transport and Power if he has any proposals to equate the charges levied on electricity consumers in rural areas with the charges in cities and towns; and if he will make a statement on the matter.
It is a matter for the ESB under the statute by which they were established to make scales fixing the methods of charge and the rates of charge for electricity supplied by the Board.
The reasons for the difference in charges between urban and rural consumers are the substantial extra costs of extending supply to rural consumers and the higher costs for maintenance, depreciation, interest, provision of renewals of assets and meter reading. The Board have no proposals for the equation of the charges which could only be done by increased subsidisation of rural charges either by the urban consumer or the taxpayer.
Did the Minister ask the ESB to incorporate in a previous report proposals to equate the charges as between rural districts and towns and cities?
No, because that is not what they have been asked to report on. To go back now and start all over again would only further delay the report.
Would the Minister ask them to submit a fresh report on this proposal? I have a feeling he does not understand the problems of people trying to build houses and to live in rural areas.
I do. I quite appreciate the point the Deputy has been making. It has been made on a number of occasions in this House during the last 12 months. The Deputy is now talking about charges, which is different from the subsidisation of rural electrification. My information from the ESB is that at the moment rural consumers are being subsidised by the urban consumers to the tune of £4 million a year.
Question No. 44.
With your permission, I intend to raise the subject matter of Questions Nos. 42 and 43 on the Adjournment.
The Chair will communicate with Deputy O'Leary on the matter.