Peter Barry
Ceist:256 Mr. Barry asked the Minister for Transport, Energy and Communications if there will be competition with the ESB for energy supplies over the national grid; and if he will make a statement on the matter. [7281/95]
Written Answers. - Electricity Industry Competition.
I am committed to the introduction of competition in those parts of the electricity industry where it is appropriate. My Department is currently preparing legislation that will establish a new industry structure and provide for both competition in the generation and retail supply of electricity. The introduction of competition for the generation of electricity provides the greatest scope for cost savings. Competition at the point of supply to consumers is intended to make the industry properly responsive to consumers' needs.
The operation of electricity networks are generally accepted as being natural monopolies. Therefore, I do not intend to introduce competition into the national grid and distribution parts of the industry.
Also, given the small isolated nature of the electricity system in Ireland, there will be a single power procurer responsible for generation capacity planning and the purchase of electricity from all generators. The power procurer will hold competitions for new and replacement generating capacity. Competition in generation will start with an open competition for the construction and operation of the new peat-fired generation station in the east midlands.