Vol. 536 No. 1
2 Mr. Stagg asked the Minister for Public Enterprise her views on whether delays in sanctioning the Ringsend plant resulted in increased costs to the ESB for the leasing of generators and gas turbines for the winter of 2000-01; and if she will make a statement on the matter [13318/01]
I dealt in detail with the approval process for the ESB-Statoil plant at Ringsend in the reply which I gave to two parliamentary questions in February of last year. In that reply I indicated that, in light of the significant competition issues arising which were con veyed to me from Europe, I exercised my statutory functions in relation to the ESB-Statoil proposal, at all times, on the basis of legal advice.
The ESB gave notice in 1998 of its intention to build a large gas fired generating station at Ringsend. The necessary approval process was initiated immediately, leading to approval in November 1998 for capital expenditure on the preparatory work up to completion of the planning process. On 1 December 1999, on the basis of legal advice from the AG, I published a letter which set out the conditions under which the next stage of approval for further capital expenditure by the ESB would be furnished. Approval for a further tranche of capital expenditure followed on 23 December 1999 and approval for the final tranche issued on 26 May 2000. The ESB applications for each tranche of capital expenditure were processed expeditiously by the Department.
The ESB's decision to lease a number of stand-by generators for use last winter was an operational decision designed to give the company flexibility in meeting peak demand. The cost involved for the leasing of five units from General Electric was £10.5 million and the necessary works involving civil construction, mechanical and electrical installations, etc., cost £8.5 million.
Does the Minister agree that the £41 million the ESB will require to finance the transport of mobile generators around the country to prevent lights going out is a waste of money? Does she agree that the waste of money is her direct responsibility because of her refusal in 1997 to recognise the looming crisis and to allow the ESB to proceed with a power station? What changed in the legal advice available to her between 1997 and 1999 when, in the face of a crisis in electricity supply, she allowed it to go ahead?
I am sorry the date of 1997 is completely incorrect. We have checked all the files and the correspondence.
When did the Minister get the advice?
All the correspondence can be viewed. The ESB gave notice in 1998 of its intention to build a large gas fired generating station at Ringsend. The necessary approval process was initiated immediately and approval was granted in November 1998. I do not know why the Deputy mentioned 1997. There is not a sum of £41 million.
There is a sum of £41 million because the money the Minister spent last year and the money she will spend next year on mobile generators is £41 million, according to the figures she gave us. Does the Minister agree there is a huge gap between the requirement of this country for electricity and the generating capacity? Two-thirds of the land mass of the Republic, particularly the midlands, the Border regions and the west, cannot accept any new large users of electricity, such as a large factory. Does she agree that not only do we not have generating capacity but that if we had, we would not have a transmission system to transmit the electricity from the generating stations to the users? We are using a 40 to 50 year old creaking transmission system which is not capable of transmitting electricity. Given that all the privateers who were supposed to arrive at our door when the market was opened have disappeared – the only one which stayed is sorry it did – what plans does the Minister have to supply sufficient electricity generating capacity and a transmission system to take the electricity to the midlands, the Border regions and the west where it is needed?
I did not answer one question the Deputy asked me earlier about legal advice. I was guided at all times by the Attorney General. All his advice and the correspondence from the European Commissioner for competition, Commissioner Monti, are available. I was always careful to give the approval and to convey that to Brussels and to take the advice of the Attorney General.
As regards electricity generation, we are happy that Viridian is here.
It is not happy as it has been left holding the baby.
I hope there will be more competition as it is good for business.
The Minister is not doing anything to get it.
It is necessary to have more competition. I am delighted the Deputy is in favour of it.
I am in favour of competition.
I know that. The electricity regulator told me at a recent meeting, and I subsequently heard him say on "Morning Ireland" that there will be sufficient capacity for the coming winter.
There will not be sufficient capacity to meet the shortfall.
The newest ESB plant will come into commission in February 2002 and the same will happen with Viridian in June 2002.
That is only for Dublin. It is not for the rest of the country.
No. It is for the rest of the country.
