Vol. 510 No. 1
51 Mr. Shatter asked the Minister for Public Enterprise the steps, if any, she is taking to prevent electricity rationing this winter due to demand exceeding supply; and if extra generating capacity by either or both ESB and new independent power procurers will be expedited. [20827/99]
I am informed by ESB that there is sufficient capacity to meet our winter electricity needs. ESB currently has responsibility for ensuring electricity demand is met. The company has approximately 4,325 mega watts of installed capacity, which will rise to 4,485 mega watts when the final phase of the Poolbeg plant comes into operation at the end of this year. This compares with the expected winter peak electricity demand of 3,700 mega watts.
Continuing growth in the economy has led to an unprecedented demand for electricity. This increase in demand means that new generation capacity, beyond that which is already under construction, will be required by 2001. While there are projects in the pipeline by ESB and others for the provision of this capacity, the ESB is successfully managing the increased demand for electricity.
I am aware of recent media reports about a capacity shortfall. It is important to understand what is meant by the term "capacity shortfall". It does not necessarily mean that ESB has insufficient capacity to meet the demand for electricity. All utilities, including ESB, must have reserve generating plant capacity available to meet demand above the anticipated peak demand. Capacity shortfall in this case means a tightening of the reserve operating margin that a prudent electricity operator would consider necessary.
As I indicated in a reply to a parliamentary question on 26 October 1999, it is important, not only for the introduction of competition in the electricity industry, but also for the economy's growing needs, that new electricity generating capacity is brought on stream at an early date. Until the planning processes are completed, no further movement can take place regarding the construction of new plant. A further issue is the allocation of gas pipeline capacity. My Department has recently issued a consultation document in this regard.
