asked the Minister for Transport and Power if he is aware that a person (name supplied) in County Cork who is setting up a small industry in a rural area is being charged £1,300 for connection to the ESB network; and if he will have this very high charge investigated with a view to having it reduced.
Ceisteanna—Questions. Oral Answers. - ESB Connection Charges.
33.
I have been informed by the ESB that the person concerned has been quoted a capital contribution of £1,302.35 for the extension of three phase supply to his workshop. In cases where it is difficult to predict the level of electricity consumption for a number of years ahead, it is the practice of the board, in order to protect their investment, to require the applicant to contribute a substantial proportion of the cost involved. The contribution in this case is related to the cost of providing the required supply and would be subject to review after a minimum period of four years but not more than seven years at the request of the consumer. In the light of the actual consumption experienced in the intervening period and the expectation of further usage at that stage, a partial refund may then be made. No reduction is now possible in the capital contribution quoted.
Does the Minister not think this is a very high sum for a small industry in a rural area where they are experiencing great problems? Is there any special scheme where such people can get grants from the Government? The Minister knows the problem.
I do. Rural electrification is subsidised but I have seen sums of that order quoted for domestic use in very remote areas. In this case the ESB had to supply 450 metres of three-phase line, a 50Kw transformer as well as servicing of meters. This is a large capital sum. They must either get sufficient income from the investment of that sum to justify its payment or else the people getting the supply of electricity must guarantee, in the event of their not using that amount of electricity, that the ESB will not be out of pocket.
Could the Minister give us in this connection, as a sample for the information of the House, the basis on which this sum was calculated?
It is actual cost basis. It is the actual cost of bringing the supply to the consumer involved.
Is it the physical cost of the extension?
Yes, the extension of the supply would require 450 metres of three-phase line, a 50Kw transformer as well as servicing and metering. Single phase supply would not be sufficient as a 10 h.p. motor is involved.
Is there any finance element involved in that costing or is it purely the physical cost of providing the supply?
I could not tell the Deputy that. The information I have here is that this is the cost of the items I have read out.
Would the Minister tell us as a matter of practice if any individual potential domestic user or industrial user would be entitled to get from the ESB the make-up of the capital charge which they propose to make in any individual case?
The break-down in this case is £1,302.25p. Yes, they would.
The Minister is giving this information now on this particular case but if I am a potential consumer and the ESB quotes me a figure of £700 or £1,000 am I entitled to get from the ESB the breakdown of that particular charge as a matter of practice?
I would not like to answer that off the cuff. The ESB may have objections to giving it for reasons that I cannot see or understand. I think possibly yes.