Vol. 527 No. 1
22 Mr. Higgins (Mayo) asked the Minister for Public Enterprise if she has satisfied herself that sufficient electricity is available to supply peak-time demand over the coming months particularly in the context of the ESB's decision to lease five emergency generators from the United States of America at a cost of £10 million; and if she will make a statement on the matter. [27830/00]
I dealt in some detail with electricity supply in reply to a previous question on 19 October 2000. The situation is being carefully managed by the ESB and by Eirgrid and, as a consequence of this, customers have not suffered any disruption to supply. The chairman of the ESB has given me a categoric assurance that there will not be a shortfall in the electricity supply this winter.
The ESB keeps my officials informed of capacity on a regular basis and, in turn, I am kept informed. The ESB recently encountered unexpected difficulties with one of its generating sets at its Poolbeg plant and with a smaller set at Shannonbridge. However, customers have not experienced any supply interruptions as a result of these unplanned outages. The localised power supply interruptions that have occurred resulted from various problems with the grid, including construction work interfering with electric cables. The smaller unit at Shannonbridge will take several months to repair but the larger unit at Poolbeg is undergoing urgent repair and will be back on stream early in the new year. The company's position is greatly helped by the mobile generators which it leased earlier this year and by the new IVO peat plant at Edenderry which I formally inaugurated on Monday of this week, 27 November. The ESB and Eirgrid will continue to manage capacity competently until a major tranche of additional capacity comes on stream.
(Mayo): When we last had oral questions here we dealt with the £25 million mini-CTC mismanagement of public funds which is the subject of the next question tabled by Deputy Stagg. In relation to the five emergency generators leased from General Electric in the United States for six months at a cost of £10 million, is £10 million the actual cost? What is the cost of the five emergency generators? Is it true that the ESB staff did not read the technical detail too closely with the result that the quoted figure of £10 million for the leasing reflects the initial payment only and that a second £10 million had to be paid as soon as the equipment was installed on the site?
Did the engineers in question not read the detail of the fuel specification too closely? Is it not true that they assumed diesel was the fuel to be used and that only recently have they discovered that to meet the technical requirements of the fuel specification, the ESB will now have to supply aero kerosene as the fuel at considerably increased cost if it has to switch on the generators?
I do not have the information on any of the three points the Deputy raised because they are entirely technical. I will find out all the details, including the cost of the five generators. The Deputy asked if the ESB staff did not read the instructions. I have no idea, but I will ask if they did not. The Deputy asked if the engineer in question was not aware of his job brief or whatever in regard to the generating capacities. On all of those points, I will inquire of the ESB and will have it contact the Deputy directly with the replies.
(Mayo): Is the Minister not aware that there is a reference in the question to £10 million? Does she not think she has an obligation to check out if £10 million, or £20 million as I have alleged, is the figure? She is after all the main shareholder – the stakeholder.
I have been told by the ESB that it is £10 million. The Deputy told me it is £20 million and I will have to ask it about that.
(Mayo): In relation to further details of the project itself, the five generators which have been installed for more than two months – the period in question is October to March – have any of the generators been brought into use as of now? Are they simply lying idle – two in Killala, County Mayo, and three in Aghada in Cork? Does the Minister not accept that there is a manifest lack of planning here? If we have to bring in five generators from the United States at a cost of £10 million or £20 million – I said £20 million because that is my information – does it not show a manifest lack of planning and foresight by virtue of the fact that there are 38,000 new consumers coming on stream every year and there is a 6% increase in demand for electricity and yet at the end of the day, we simply do not have adequate generation capacity in the grid to supply the minimum needs of the country and that we have to resort to these very expensive emergency measures to ensure that supply is augmented if necessary?
I would be very pleased with the ESB for taking the emergency measures needed. The Deputy talked about engineers and technical details and I will have the ESB reply to him directly on them. The ESB has supplied me with a figure of £10 million for the purposes of a Dáil answer. I can only assume it is telling me the truth. If the Deputy says it is £20 million, I will get the ESB to reply directly to the Deputy.
The House should know that the unit three at Poolbeg, which is out of commission, is down for a 12 week overhaul. A major problem has occurred there. This has a 270 megawatt capacity outturn, so it is a major supplier. A major problem has occurred with the welding in the boiler tubes. The outside contractor has accepted full responsibility for the problem and he will bear the full cost of putting it right. The ESB aims to have the unit operational again by the end of December or in early January. It would seem it was most prudent of the ESB to make those standby arrangements.
We must proceed to Question No. 23. We have exceeded the time on that question.
(Mayo): Has the Minister any information on whether tenders were sought?
For the emergency generation supply?
(Mayo): Yes.
That would be an operational matter. The Deputy has made very serious accusations against the ESB.
(Mayo): I have asked questions.
The Deputy is quite right to ask them.
We must proceed to the next question.
Clearly, I must ask if it has given me incorrect information. The points the Deputy put about the engineer not being able to read the specification, about the other technical people and about the details not being read by the ESB staff and his accusation that the cost went from £10 million to £20 million, are serious
accusations—
I remind the House that we have to proceed with questions in line with Standing Orders.
—which stand to be addressed.
We cannot have breaches of Standing Orders.
Sorry.
