Denis Naughten
Ceist:245 Mr. Naughten asked the Minister for Public Enterprise if she will review the current top-up and spill prices within the deregulated electricity sector; and if she will make a statement on the matter. [21868/01]
Written Answers. - Electricity Prices.
The type of review referred to is a matter for the Commission for Electricity Regulation, CER, which is an independent body established under the Electricity Regulation Act, 1999. One of the key functions of the commission is to establish, supervise and review a system of trading in electricity in accordance with the terms of the Minister's policy direction of July 1999 relating to trading in electricity. In response to a request from me to examine the competitive difficulties faced by new entrants, the CER replied that it is currently carrying out reviews across a range of areas. These reviews are being carried out with a view to enhancing the economic circumstances for market entry, thereby increasing competitive opportunities and security of supply for customers. In this context, the commission has recently published on its website at www.cer.ie an information note on key strategic deliverables and timeframes for the completion of these reviews.
In this connection, I understand that the CER has decided to bring forward to September 2001 its review of the price effectiveness of the interim trading and settlement system foreseen in the Minister's policy direction of July 1999. The commission has said that it may modify the pricing arrangements if they do not meet the main objective of the trading arrangements, which is the promotion of efficient competition among licensed generators and suppliers within the market being opened to competition. The CER has indicated that the review will include a thorough analysis of the possibility of the spill price containing a capacity element.