Vol. 696 No. 1
42 Deputy Tom Hayes asked the Minister for Communications, Energy and Natural Resources the position in regard to the establishment of a one-stop-shop to improve the provision of broadband infrastructure here; and the delay in setting up this new structure to date; and if he will make a statement on the matter. [43292/09]
56 Deputy Jan O’Sullivan asked the Minister for Communications, Energy and Natural Resources his views on the call from the Association of Licensed Telecommunications Operators for a one-stop-shop for the communications market here; the position regarding the establishment of a one-stop-shop to provide service providers with open access to existing ducting infrastructure; and if he will make a statement on the matter. [43365/09]
61 Deputy Jimmy Deenihan asked the Minister for Communications, Energy and Natural Resources when he plans to instruct ComReg to allow open access to all publicly and privately owned infrastructure. [43275/09]
I propose to take Questions Nos. 42, 56 and 61 together.
The establishment of a "one-stop-shop" is one of the commitments contained in the Next Generation Broadband policy paper "Gateway to a Knowledge Ireland", which I published in June this year.
The key objective of the "one-stop-shop" concept is to facilitate telecoms operators in gaining access to ducting assets in State owned networks, thereby ensuring optimal use of State assets and facilitating more cost-effective roll out of broadband. The context to the proposal is the anticipated increase in demand for high speed broadband. This can be facilitated by the installation of fibre in State owned ducting.
The actual implementation of the "one-stop-shop" is a complex process involving engagement with a range of State Bodies who own the assets and also consideration of the best operational model to implement the concept. My Department has had internal engagement with the relevant State Bodies who are generally supportive of the proposal.
On foot of this engagement my Department has undertaken a review of State owned networks to determine the routes of infrastructure such as roads, electricity, gas and rail. A more detailed audit of the infrastructure in these networks will now be necessary in order to provide telecoms operators with the type of information they require to inform commercial decisions on broadband rollout.
It is my intention to establish an Implementation Task Force chaired by my Department and comprising senior officials from the relevant State agencies who own ducting infrastructure to oversee the project.
It is necessary, in advancing the concept of a co-ordinated service for telcos, to ensure that any arrangements will not impose net additional costs on them and will provide added value. We will also consider possible impacts on both private sector telcos and State companies with a telco arm to ensure that the introduction of the "one-stop-shop" supports a competitive market but does not create undue market distortions.
It is also important, in terms of future-proofing, to understand what alternative options telcos may have to the "one-stop-shop" concept and what impact regulatory changes may have on these over time. There are complex commercial, legal and technical issues, which my Department is progressing as quickly as possible.
To assist implementation of access to State ducting, I intend to amend Part V of the Communications (Regulation) Act 2002 relating to carrying out communications work on public roads.
These proposed amendments will provide a framework for the National Roads Authority to make ducts on national roads and motorways accessible to telecommunication companies.
It is intended that these amendments will be introduced in the Report Stage in the Dáil of the Premium Rate Services Bill 2009, which is scheduled for early next month. My Department will also advance urgently consideration of all the other issues which will impact on implementation of the "one-stop-shop". This includes the appropriate operational model. It is my intention that the "one-stop-shop" will be in place in 2010.
43 Deputy Pat Rabbitte asked the Minister for Communications, Energy and Natural Resources the way he intends to combat fuel poverty in winter 2009; the number of persons who live in fuel poverty here; the number of homes that were part of the warmer homes scheme for 2008 and 2009; the delay in publishing the findings of the fuel poverty action research group; and if he will make a statement on the matter. [43345/09]
82 Deputy Joan Burton asked the Minister for Communications, Energy and Natural Resources the number of applicants each year and to date in 2009 for the warmer homes scheme; the waiting time for approval and participation in the scheme; if there are applicants who have applied in 2009 who will not be able to avail of this scheme; and if he will make a statement on the matter. [43363/09]
88 Deputy Michael D. Higgins asked the Minister for Communications, Energy and Natural Resources when he will publish the findings of the fuel poverty action research project; when this was first due for publication and the reason for its delay; the numbers living in fuel poverty; the number of persons who benefited from the warmer homes scheme; and if he will make a statement on the matter. [43360/09]
90 Deputy Jim O’Keeffe asked the Minister for Communications, Energy and Natural Resources the details of the warmer homes scheme; the method of application; the average time of approval for applications; the number of approved applications to date in 2009; and if he will make a statement on the matter. [43235/09]
I propose to take Questions Nos. 43, 82, 88 and 90 together.
Quantifying the numbers of people who can be classified as fuel poor depends on the methodology employed. The ESRI estimates that some 300,000 or 19.4% of Irish households may have experienced fuel poverty last year. This figure is based on the share of income spent on household fuels. ESRI estimates that based on subjective assessment by householders, some 68,000 or 4.6% of households could not afford to heat their homes adequately in 2006.
The Government is committed to mitigating the impact of energy costs for vulnerable households through a combination of institutional supports, structural energy efficiency improvements to houses and advice for consumers. The effective communication of energy saving information and advice to the elderly and other vulnerable customers is crucial. The updated Keep Well and Warm booklet, and the associated website, provide energy saving advice as well as information on grant schemes and other supports. Some 132,000 copies of the booklet have been circulated this year.
I am working closely with the Minister for Social and Family Affairs and the Minister for the Environment, Heritage and Local Government, to ensure a fully cohesive approach to energy affordability. The Affordable Energy Strategy, currently being developed by the Inter Departmental Agency Group, will set out existing and future approaches to addressing energy affordability.
The Warmer Homes Scheme operated by Sustainable Energy Ireland (SEI) is the pivotal mechanism for alleviating the underlying cause of energy poverty — that of thermal inefficiency. Some €20 million has been provided for the scheme in 2009, which includes €5 million provided by ESB and BGE. Under the Scheme, structural improvements will have been made to an additional 15,000 homes by the end of this year. This represents a very significant up-scaling of the scheme and underlines the Government's commitment to those most at risk this winter.
The Warmer Homes Scheme provides energy efficiency improvements to homes in, or at risk of, fuel poverty at zero or nominal cost. The scheme is primarily delivered by 22 community based organisations (CBOs). The CBOs work in partnership with their local network of poverty and community support organisations including public health nurses, MABS and St. Vincent De Paul to identify and address vulnerable homes.
Each CBO is responsible for managing applications in their own operational areas. Neither SEI nor my Department have data on the number of applications in each CBO area.
The waiting time for approval and participation in the scheme varies across CBOs. It depends on the level of demand in individual areas and available resources available to them. The average waiting time under the Scheme currently ranges between six and ten months. This is a significant improvement on previous years. It is the case that applicants who have recently applied under the scheme may not, in the time available, be assisted before the end of the year. They will however, be accommodated next year subject to available funding.
Apart from the Warmer Homes Scheme there is considerable financial assistance to alleviate fuel poverty provided under various schemes which are the responsibility of the Minister for Social and Family Affairs.
The Fuel Poverty Action Research Project was established by Combat Poverty and SEI. The project was designed to assess the energy, environmental, thermal comfort and health benefits of the Warmer Homes Scheme.
The report was initially scheduled to be completed in 2008. However, I am advised that its completion was delayed due to the accidental loss of some key data. In August of this year the draft report was circulated to members of the research community for comment. Following this consultation process, publication of the final report is expected next month.
44 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the measures he is planning to introduce to promote bio-fuel production domestically here in view of setting a bio-fuel content for petrol and diesel target of 4%. [43266/09]
92 Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources if he is satisfied that all fuel supply companies will meet the new bio-fuels obligation of 4% of annual fuel sales from July 2010 as announced in November 2009; if his attention has been drawn to the current percentages in relation to fossil fuel and bio-fuel sales by fuel supply companies; the money made available in 2009 for capital grants for biomass and combined heat and power plants to the bio-fuel sector; the projected percentage take up of same in 2009; and if he will make a statement on the matter. [43373/09]
93 Deputy Joe Costello asked the Minister for Communications, Energy and Natural Resources his position on bio-fuels; the way he intends to ensure compliance for bio-fuels used here with the sustainability criteria proposed by the EU; the percentage of bio-fuels sold here which were imported; the countries from which they are imported; and if he will make a statement on the matter. [43338/09]
I propose to take Questions Nos. 44, 92 and 93 together.
As I advised the House earlier, the Government is committed to the sustainable development of an Irish biofuels market in line with EU biofuel requirements and policy developments. The introduction of the National Biofuel Obligation next year will underpin the development of the Irish biofuels market. The Obligation will also integrate the EU Commission's guidelines on Sustainability Criteria as soon as these are finalised. Under the Obligation fuel suppliers will be legally required to include 4% biofuels in their overall annual fuel sales. I am satisfied that this target will be delivered. The Obligation will in effect create a long-term market based framework for the progressive development of the Irish biofuels sector. As the Deputy is aware, prior to the introduction of the Excise Relief schemes in 2005, market penetration of biofuels in Ireland was almost non-existent. Penetration is set to exceed 2% in 2009. There have been at least five biofuels plants constructed or redeveloped on foot of excise relief granted under the schemes. A number of others are either at an advanced stage of planning, or have received planning permission. Under the excise relief schemes there has been over 180 million litres of biofuel produced for the Irish market to date, of which 49% was imported from the United Kingdom, the Netherlands, Germany and South America. The steady growth in indigenous biofuel production is reflected in the fact that it represents 51% of biofuel production to date. The introduction of the Biofuel Obligation in 2010 will, through the creation of a guaranteed market demand, provide the Irish biofuels sector with the certainty it needs to underpin investment and sustainable growth. This will create economic activity across the regions. I can advise the Deputy that funding of over €5 million was provided under ReHeat and CHP programmes for 2009. It is the case that projects to date have come from the solid biomass sector as opposed to the liquid biofuel sector. Overall, I am satisfied that the National Obligation from next year, will incentivise and enable the sustainable growth of the Irish biofuels market and support indigenous biofuel producers. The EU sustainability criteria will also provide some competitive advantage by ensuring that non-EU imports meet strict environmental guidelines.
45 Deputy John Perry asked the Minister for Communications, Energy and Natural Resources his plans to address the windfall profits being made by electricity generators on the back of charging consumers for the cost of carbon; and if he will make a statement on the matter. [43323/09]
The current EU Emissions Trading Scheme (ETS), which runs until the end of 2012, requires a free allocation of carbon credits to electricity generators. The North-South Single Electricity Market Committee, which is statutorily responsible for the operation of the all-island electricity market on the island of Ireland, decided that from 2008 all electricity generators must include the full opportunity cost of their carbon allocations when bidding into the Single Electricity Market. The enterprise community in particular is concerned that this increases the wholesale cost of electricity and gives rise to windfall gains being earned by electricity generators. The cost impact of carbon and the related windfall gains for generators fluctuates with the price of carbon, which is currently at approximately €13 a tonne. The Government decided last July to work to progress the introduction of legislation to recover carbon windfall gains from electricity generators up to 2012. My Department, in consultation with the Office of the Attorney General and the Department of Finance, is examining the complex issues inherent in designing a legislative mechanism, which could recover carbon windfall gains from electricity generation companies. There are many legal and other considerations to take into account in any potential treatment of carbon windfall gains. The potential impact on the rules and operation of the all-island Single Electricity Market, which straddles the two jurisdictions, North and South, is also a key consideration. I will be reverting to the Government with the outcome of the analysis and the advice of the Attorney General as soon as possible. The ESB has contributed over €300 million this year to reduce electricity prices for all consumers, of which ESB's carbon benefits accounted for a significant portion. For the future and in the context of the European Union's ambitious plans for carbon emissions and cap and trade after 2012, my personal view is that the allocation of carbon credits, which is the basis for trading, should be done by auction rather than free allocation. I strongly favour a scenario post 2012 in which all carbon permits should be bought on the open market and producers can compete on the basis of carbon costs. This will eliminate any windfall gains for electricity producers and promote competition between generators as to who can produce electricity using the least carbon. In my view this is an essential development, which will be good for the environment and good for the consumer.
46 Deputy George Lee asked the Minister for Communications, Energy and Natural Resources if he plans to allocate or auction spectrum that will soon become available for use by telecoms operators; and if he will make a statement on the matter. [43300/09]
The Commission for Communications Regulation (ComReg) is responsible for spectrum management in Ireland and is required, under the Communications Regulation Act 2002, to produce, publish and maintain the national Radio Frequency Plan, which is a national table of frequency allocations. This document details international and European frequency allocations as well as national usage and relevant national and European legislation. Copies of this document can be obtained from ComReg at www.comreg.ie. ComReg is also responsible for the assignment of spectrum by means of licences issued to individual licensees or licence exemptions, in accordance with Regulations made under the Wireless Telegraphy Act 1926 with my approval. The process used to determine which spectrum is assigned to whom is a matter for ComReg, including where necessary by competition or auction. In carrying out these functions, ComReg holds regular public consultations regarding the most suitable course of action for various spectrum ranges. ComReg is currently considering how best to assign spectrum that will become available in the medium term. In particular, there is likely to be significant demand for the spectrum which is in the GSM band and other spectrum that will become available when analogue TV is switched off. The options are complicated, and the final decision, regarding the optimal process is entirely a matter for ComReg.
47 Deputy John Deasy asked the Minister for Communications, Energy and Natural Resources if he plans to introduce legislation to facilitate geothermal combined heat and power projects; and if so, the timescale for same. [43273/09]
72 Deputy Ruairí Quinn asked the Minister for Communications, Energy and Natural Resources the position regarding the findings of the geothermal working group established by his Department in 2008; the timeframe for any proposed legislation; and if he will make a statement on the matter. [43348/09]
91 Deputy Joe Costello asked the Minister for Communications, Energy and Natural Resources the position regarding the findings of the Geothermal Working Group; if the legislative requirements are necessary in order to facilitate the growth of the geothermal industry; and if he will make a statement on the matter. [43337/09]
I propose to take Questions Nos. 47, 72 and 91 together.
The report of the Geothermal Working Group is being finalised and it is intended to publish it, when complete, on the Department's website. I am strongly committed to the early provision of a legislative framework for the exploration for and development of geothermal energy. Accordingly, I have instructed my Department to prioritise the drafting of a General Scheme of a Bill with a view to producing heads in early 2010, with detailed legislative drafting to follow by the Office of Parliamentary Counsel. It is important to stress that geothermal energy is a new area of legislative endeavour in this jurisdiction and the Bill is likely to be substantial, dealing with a range of matters such as ownership of the resource, regulation and licensing of exploration and development, ancillary rights and protection of third party interests. In relation to combined heat and power facilities, it is my intention that the Bill will be drafted to accommodate a range of technical approaches to the exploitation of geothermal energy. While I am committed to expediting the preparation of this legislation, it is not possible at this juncture to identify a firm date for publication.
48 Deputy Enda Kenny asked the Minister for Communications, Energy and Natural Resources the position regarding the provision of commercial digital terrestrial television here and the ongoing negotiation between the Broadcasting Commission of Ireland and a consortium (details supplied); the timescale for the rollout of a free to air DTT service; and if he will make a statement on the matter. [43298/09]
49 Deputy Paul Connaughton asked the Minister for Communications, Energy and Natural Resources the exact target date for the switch off of analogue television broadcast services. [43261/09]
74 Deputy Eamon Gilmore asked the Minister for Communications, Energy and Natural Resources his views on the EU Commissioner for the Information Society’s call for EU countries to speed up the move to digital terrestrial television; the timeframe for a signed contract with a company (details supplied); and if he will make a statement on the matter. [43339/09]
76 Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources the position regarding with digital terrestrial television; when he excepts to finalise the contract for DTT with a company (details supplied); if he will comment on reports that companies have reduced their stake in that company; the amount spent on DTT by RTÉ to date in 2009; and if he will make a statement on the matter. [43342/09]
I propose to take Questions Nos. 48, 49, 74 and 76 together.
The Broadcasting Act 2009 provides, consolidates and updates broadcasting legislation. Part 8 of this Act replaces and updates the Broadcasting (Amendment) Act 2007 which provided for the development of digital terrestrial television in Ireland and for the closure of the national analogue TV network. Under the 2009 Act, RTÉ continues to have responsibility for the provision of a national free to air digital terrestrial television system with the capacity to carry RTÉ 1, Network 2, TG4 and TV3. This new service will eventually replace the existing analogue terrestrial television service. The legislation also requires the newly established Broadcasting Authority of Ireland, BAI, to provide for the development of commercial digital terrestrial television, DTT, services. The BAI, which is an independent regulatory authority, is responsible under the 2009 Act for the licensing and competition issues raised by the Deputies. A competition for commercial multiplexes initiated by the Broadcasting Commission of Ireland, BCI, in 2008, under the 2007 Act, is still ongoing. The contract has been offered to the One Vision consortium. The BAI has taken over the role of the BCI in finalising this competition. While I have no direct function in these matters, I am concerned on policy grounds to see an early agreement on the provision of commercial DTT services and an early time path for the implementation of such agreement. My policy objective is the achievement of the earliest possible switch-off of the analogue system thereby releasing valuable spectrum to enable Ireland to reap the benefits of the digital dividend.
In relation to the rollout of DTT services, I am informed by RTÉ that, to date, 13 sites have been DTT enabled to accommodate both the single free to air DTT multiplex and also three commercial DTT multiplexes. This represents the most difficult and costly element of the build plan as it includes the main transmitter sites in Ireland. It also involves costs associated with replacing several of these masts to accommodate the commercial multiplexes. RTÉ has informed me that the accumulated capital expenditure on DTT, commercial plus free to air, for 2009 is expected to be €13.5 million. In relation to the timing of the rollout of the free to air DTT service, the legislation provides that RTÉ must provide a full national DTT service by the end of 2011 or such later date as I decide. RTÉ has not yet set a date for launching the free to air DTT service but has indicated a preference for launching in parallel with a commercial DTT operator as the availability of commercial DTT is important to assist RTÉ in getting a return on its investment and to ensure adequate viewer choice in the digital era.
In relation to the target date for switching off the analogue terrestrial television services, the Broadcasting Act 2009 provides for me to establish a date or dates for analogue switch off, after consultation with RTÉ and the BAI, on among other things, the availability of digital television services in the country, the availability of suitable televisions and other receivers and the take up of these services. In this regard, I am in close contact with the BAI and RTÉ on progress in these areas. The European Commission has set 2012 as the timeline for analogue switch off throughout Europe and recent correspondence from the European Commission is requesting that Member States should endeavour to adopt 1 January 2012 as the target date. I consider that it is in the best interests of Ireland to switch off analogue services in 2012. In this regard, I have established a group to advise me on planning for analogue switch off and I expect to report on this in the first quarter of 2010.
50 Deputy Seán Barrett asked the Minister for Communications, Energy and Natural Resources the rationale behind the postal code system that he proposing to introduce here; the timescale and cost for same; and if he will make a statement on the matter. [43248/09]
53 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources his proposals for the introduction of postcodes; the cost of introducing postcodes; his views on whether the cost is justified at this time; and if he will make a statement on the matter. [43335/09]
57 Deputy Willie Penrose asked the Minister for Communications, Energy and Natural Resources the position regarding the possible introduction of postcodes; his views on the benefits of postcodes; the amount already spent on postcodes; the estimated full cost; if he will clarify his statement that it will be self financing; and if he will make a statement on the matter. [43346/09]
84 Deputy Emmet Stagg asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the criticisms from a union (details supplied) to his announcement of the introduction of postcodes; and if he will make a statement on the matter. [43340/09]
I propose to take Questions Nos. 50, 53, 57 and 84 together.
A smart economy envisages economic development based on innovation and sustainability and an economy aiming for high end performance requires that the underlying infrastructure supports enterprises based on knowledge and innovation. One key element of national infrastructure which is required is a common spatial identifier across the economy. Postcodes provide this common identifier which will assume greater importance as we become more embedded in the digital economy. Ireland is the only country in the EU that does not have such a postal code in place. The Government has recently approved the implementation of a postcode for Ireland as recommended by the National Postcode Project Board. This board, which comprised representatives from Government Departments, together with public and private sector organisations, including the Communications Workers Union, identified many postal and non-postal benefits of introducing postcodes and recommended that a postcode be introduced. Consultations conducted by the Board's advisors revealed an overwhelming support for the introduction of postcodes across public, private and voluntary sectors and identified that postcodes would not only deliver benefits for the postal sector but also would contribute to the development of a knowledge economy and the country's overall competitiveness.
With respect to the postal sector, the forthcoming liberalisation of the market in 2011 has highlighted the absence of a postcode as a potential barrier to market development and many stakeholders see postcodes as playing an important role in development of a competitive, high-quality postal sector. I am aware of the criticisms made by the Communications Workers Union, in particular, that postcodes will damage the position of An Post. This is not the case. It has been longstanding Government policy that An Post remains a strong and viable company, in a position to compete in a liberalised market. The Government's core policy goal for the postal sector is to ensure that Irish customers, both business and residential, enjoy competitively priced, high quality postal services. This would not be possible without a key piece of infrastructure such as postcodes. The introduction of postcodes will bring opportunities for all players in the postal sector. However, some of the more significant benefits of having a postcode in place will materialise outside of the postal and logistics sectors. These benefits include providing an enhanced capacity and capability to use spatial data effectively and link databases with spatial elements across Government. Using spatial data more effectively can improve public policy making and help with the more effective use of resources. Postcodes will also facilitate better location-based services and will also facilitate the speedier deployment of emergency services.
As regards costs, the National Postcodes Project Board's report estimated upfront costs of establishing a postcode address database, implementing and promoting the postcode would be in the region of €15 million. The ongoing annual maintenance costs, will be financed from revenues generated by the postcode manager charging for value added products and services. The upfront investment by Government can be justified, because, the benefits to society, which are spread across a wide range of stakeholders, including the public sector, outweigh the private benefits accruing to any individual investor. No single stakeholder or set of stakeholders is likely to ensure the delivery of a publicly available postcode. Government is in the unique position of being able to implement a national postal and location code. As a key piece of national infrastructure, they will deliver economic and social benefits, which we will reap long into the future. Whilst many of the benefits of postcodes cannot be accurately gauged in monetary terms, consultants asked to review the public sector benefits estimated the monetary benefits to the State would be €22 million in the medium term. This analysis incurred fees of €54,450. Separately, the National Postcodes Project Board was assisted in its work by technical and economic consultants, recruited and funded in 2005 by ComReg, at a cost of approximately €479,000. Following on from the Government approval to implement postcodes, my officials and I are working to address the next steps in this project, including the process of selecting a body to implement the proposed system. It is expected that postcodes will be assigned and in use in 2011.
51 Deputy Seán Sherlock asked the Minister for Communications, Energy and Natural Resources the position regarding the funding and number of applicants for the greener homes scheme; and if he will make a statement on the matter. [43355/09]
The Greener Homes Scheme supports the installation by householders of renewable energy heating technologies including wood pellet and chip stoves and boilers, gasification boilers, solar panels and geothermal heat pumps. The grant is a fixed amount, based upon the technology selected, towards the cost of purchase and installation of the chosen scheme. Products and installers must be selected from published Sustainable Energy Ireland registered lists. The net number of applications from 2006 to date under the scheme is 29,000. Nearly 25,000 installations have been completed under the scheme. Exchequer funding to date has amounted to just under €62 million. The Greener Homes Scheme has created a stable market in domestic renewable energy technologies and has supported the development of the renewable heating industry. The current phase of the scheme was launched in July 2008. New homes ceased to be eligible with the introduction of the new building regulations under which it is now compulsory to include a component of renewable energy in new housing developments. The scheme is supporting a range of objectives, including more competitive offerings for the consumer, enhanced product standards, quality assurance and improved training standards and certainty for the renewable heating industry. The Exchequer allocation of €12.345 million for 2009 was increased by €3 million during the year in order to meet continued levels of demand under the scheme. Decisions in relation to funding for 2010 will be taken in the context of the Estimates process.
52 Deputy Terence Flanagan asked the Minister for Communications, Energy and Natural Resources the progress made to date on rolling out an infrastructure for charging electric vehicles; and if he will make a statement on the matter. [43287/09]
65 Deputy Charles Flanagan asked the Minister for Communications, Energy and Natural Resources if he has worked on securing a memorandum of understanding with any new manufacturers with a view to producing electric vehicles here following his statement that he will look to other manufactures to guarantee choice and supply of electric vehicles; and if he will make a statement on the matter. [43285/09]
68 Deputy Eamon Gilmore asked the Minister for Communications, Energy and Natural Resources the progress of rolling out an infrastructure for charging electric vehicles; when the inter departmental and inter agency task force report on electric vehicles will be published; and if he will make a statement on the matter. [43347/09]
I propose to take Questions Nos. 52, 65 and 68 together.
The Government has ambitious plans for the large scale deployment of electric vehicles in Ireland. A target has been set of 10% of all vehicles to be powered by electricity by 2020. This would equate to around 225,000 cars on Irish roads. Electric vehicles are an increasingly realistic solution to the challenge of reducing the transport sector's Greenhouse Gas Emissions and reducing reliance on imported fossil fuels. There is now very significant global investment under way in research and development in this area. The technology is maturing to a point where large scale commercial deployment appears feasible in the short to medium term. There is keen interest internationally in Ireland's commitment to be an early mover in this field. Ireland is seen as an excellent test-bed particularly in relation to network infrastructure development. The challenge now is to develop economically viable options for the establishment, cost efficient operation and maintenance of an electric vehicle infrastructure network in Ireland, together with measures to develop a market for the vehicles themselves.
ESB Networks has a central role to play in the research and development of the infrastructure network. The ESB is also playing a leading role in work by European utilities and car manufacturers to progress essential standardisation across Europe. The Inter Departmental/Inter Agency Taskforce is advising on the costed options and timeframes for putting in place the necessary infrastructure and other arrangements for the cost effective deployment of electric vehicles on a national basis. Initial estimates by ESB Networks for the roll out of infrastructure are between 6 and 18 months depending on the scale of initial deployment. Global developments will be factored in as the technologies mature. I am currently reviewing the report of the task force with a view to bringing it to Government in the near future for agreement to setting a clear roadmap ahead. While it is my intention in the context of Budget 2010 to discuss with the Minister for Finance, the possible introduction of incentives to assist in the roll-out of electric vehicles, such decisions can only be considered in the context of the overall budget framework. My Department and the ESB have already agreed a Memorandum of Understanding with Renault-Nissan which provides for ongoing information exchange on developments. Discussions are underway with a number of other car manufacturers, with a view to developing Memoranda of Understanding, with them also.
54 Deputy Bernard Allen asked the Minister for Communications, Energy and Natural Resources if he will have discussions with EirGrid to promote the construction of a 7 km cable from Sorne Station in County Donegal to Coolkeeragh Station in Derry, which would enable wind energy produced in the north west to be sold in the UK and European markets; his views on the potential for wind energy production on the peninsular north west Atlantic coast; and if he will make a statement on the matter. [43244/09]
Developing the electricity grid infrastructure in the North West in an economically viable and environmentally acceptable way is the key to optimising the North West renewable energy resources to the benefit of the region, the economy and consumers. The North West has the potential to become a net electricity exporter to the rest of the island and beyond.
EirGrid's GRID25 strategy sets out in broad terms the development required in each region of the country out to 2025. EirGrid concludes that the capacity of the backbone transmission system needs to be doubled in the period from now to 2025 in order to meet future levels of demand, security of supply needs and to deliver on our ambitions for renewable energy.
Grid25 states that the renewable energy demand in the North West region could grow by up to 60% by 2025. EirGrid's assessment is that Donegal could have almost 700 MW of wind generation by 2025, with Mayo/Galway having around 890 MW and Leitrim/Roscommon having just over 250 MW of wind generation. This is in addition to the potential for 300 MW of ocean generating technologies where the challenge is to get to large scale deployment over the next decade.
An ambitious but cost effective level of transmission infrastructure will be needed to deliver this renewable capacity in a region which is acknowledged to have a relatively weak transmission system currently.
Grid25 has already identified the key infrastructure upgrades for the North West region:
Investment of approximately €750m to upgrade almost 700 km of the existing transmission network in the North West and to build new circuits;
Extension of the 220 kV network into Sligo, which is already in progress;
110 kV reinforcements between Killybegs and Letterkenny and between Ballaghadereen and Castlebar;
Major infrastructural development from Mayo to the main bulk transmission system in the eastern part of the region;
Further integration of the Donegal and Northern Ireland networks in conjunction with NIE, the Northern Ireland Transmission company.
In the latter context, EirGrid, in conjunction with SONI and Northern Ireland Electricity, is assessing the overall options for strengthening the linkages between the two networks. Eirgrid has confirmed with me that options for the Sorne line are being reviewed among several possible options being assessed. The specific lines and routes ultimately identified will be subject to the normal planning processes North and South.
58 Deputy Shane McEntee asked the Minister for Communications, Energy and Natural Resources when he intends to change the regulatory model for setting the price of domestic household electricity in order to allow the ESB to compete on price; and if he will make a statement on the matter. [43303/09]
I welcome the fact that the benefits of competition in electricity supply, which have previously been confined to large industrial and commercial customers, are also available to domestic consumers. The entry into the domestic electricity market of two new suppliers, Airtricity and Bord Gáis Energy, demonstrates that policy to encourage competition in electricity generation and supply is paying dividends for consumers.
The independent suppliers are offering discounts of between 10% and 14% on ESB unit rates. These discounts apply even after the 10% reduction in ESB prices implemented by the Commission for Energy Regulation (CER) from May 1st 2009. The independent suppliers are also offering domestic consumers fresh choices, such as the proportion of renewable electricity they purchase, as well as alternative billing arrangements. Domestic customers have been switching to the independent suppliers in unprecedented numbers. However, there are close to 2 million domestic electricity customers and ESB still retains some 80% of the market share in this category.
The CER has made it clear that the regulation of ESB tariffs will only continue until competition has taken firm hold in the market. Energy price regulation is designed to ensure that a dominant player cannot engage in uncompetitive, short-term pricing practices, which could undermine or drive out emerging competition. The CER has been working with ESB and with the other players in the market to develop a timeframe for deregulation.
In a tariff decision paper published on September 3rd 2009, the CER set out its commitment to the short to medium term removal of all price regulation provided there is the continued development of the appropriate levels of sustainable competition in all sectors of the market. I welcome the CER's commitment to publish a 'Roadmap' for deregulation in the near future.
60 Deputy Emmet Stagg asked the Minister for Communications, Energy and Natural Resources his views on the proposed disbandment of the digital hub; and if he will make a statement on the matter. [43357/09]
There are no plans to disband the Digital Hub Development Agency (DHDA). The Agency has enjoyed much success in creating a cluster of young and vibrant enterprises focussing on the creation and development of digital media content which will be key to the success of the smart economy. The Report of the Special Group on Public Service Numbers and Expenditure Programmes did recommend that the DHDA should be amalgamated with either Enterprise Ireland or the Industrial Development Agency (IDA) but no decision has been taken by me or the Government.
The Digital Hub Development Agency (DHDA) continues to develop and grow the Digital Hub. The number of companies and employees based in the Hub has grown steadily and the demand for additional space for digital media companies continues to increase.
There are now 870 employees working in 101 companies located in the Digital Hub. A further 290 approximately contract employees are engaged on a regular basis by Hub companies. Approximately one in six digital media companies currently operating in Ireland is based in the Digital Hub. The work of these companies encompasses computer gaming, animation, online bookings, Internet security, website development, mobile technologies, broadcasting, design and Internet services. Such highly skilled knowledge economy companies are key to maintaining and developing economic success.
The Digital Hub Development Agency has performed remarkably well since its inception and I look to the client companies that have been nurtured at the Digital Hub as exemplars of what we can do in establishing Ireland as a leader in digital media industries.
62 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources if he will comment on a recent report on broadband which positioned Dublin as the 87th city in the world in regard to quality of broadband; and if he will make a statement on the matter. [43336/09]
86 Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the position currently held by the telecommunications sector here within the EU on a scale of one to 27 with particular reference to availability and access to highest speed broadband, satisfactory mobile telephony, cable and wireless systems; his plans to improve the situation dramatically from an Irish perspective; the timescale within which this might happen; if his attention has been drawn to the need to bring this sector up to international best practice given our competitive needs; and if he will make a statement on the matter. [43371/09]
I propose to take Questions Nos. 62 and 86 together.
Government policy pertaining to the electronic communications market in Ireland is set out in "Next Generation Broadband — Gateway to a Knowledge Ireland", which I published in June 2009. The policy paper was developed in accordance with various key principles which are crucial to the development of the market including (i) competition, at platform and service levels, which drives innovation and investment (ii) investment certainty for service providers considering investing in network infrastructure, (iii) investment intervention by Government to bridge any digital divide to address market failures and to provide certain of the State's communication needs (iv) appropriate regulation.
A variety of international reports on electronic communications markets are published periodically. It is clear from all of the reports that the roll out, penetration and quality of broadband in Ireland has improved steadily over recent years. I welcome the "Broadband Quality Score" report published jointly by the Universities of Oxford (England) and Oviedo (Spain) on October 1st last and referred to by the Deputy. The report is the second annual global study on the quality of broadband connections, which provides useful comparisons of quality and penetration indicators between the countries studied in each year and a measurement of progress achieved in the period between the two reports.
The 2009 report highlights significant progress in Ireland's broadband performance across a range of headings. In particular it reflects the significant improvements in the roll out, penetration and quality of Ireland's broadband over the past year. The report highlights the improved broadband quality of service in Ireland moving the State into the group of countries that are recognised as "Meeting the needs of today's applications". In the previous report, published in 2008, Ireland was in the lower ranked group of countries that were classified as "Below today's applications threshold".
Ireland's overall ranking of 16th out of the 66 countries in the Broadband Leadership table, measuring broadband quality and penetration by households, is commendable and shows due recognition for our increased penetration and quality over recent years. Ireland is also credited for its performance in terms of "Broadband Leadership Movers 2008–2009 Innovation Economies". Only 11 of the 66 countries are credited as leaders in this "innovation economies" class. Dublin is ranked at 87, from a Broadband Quality Score perspective, of more than 240 cities surveyed bringing it within the top 100 cities in the 66 countries surveyed and is classified as meeting the needs of today's applications. It should be noted that major enterprises already located in, or who wish to locate in Ireland can contract with service providers who can provide high broadband speeds if required.
Our significant improvement in broadband availability over recent years is recognised in the table "penetration 2009" where we occupy 12th place in the table of 66 countries and were the 5th best country in terms of improvements in penetration between 2008 and 2009. I fully recognise the need to further improve access and the speed of broadband available in Ireland. I am determined to ensure that targeted Government action, the proper regulatory regime and a spirit of competitive collaboration within industry will address the issues. The high level recommendations for policy makers contained in the report are already embedded in my policy paper "Next Generation Broadband — Gateway to a Knowledge Ireland". It is also important to note that the report underpins recent OECD, ECTA and ComReg reports, which confirm improvements in Ireland's roll out and speed of broadband.
64 Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Question No. 523 of 7 July 2007, if the monitoring committee presented its second progress report on the Disability Act 2005 sectoral plan; if the consultation process with interested parties was carried out; if the subsequent review of the implementation of the sectoral plan has been completed by his Department; when he intends to publish same; and if he will make a statement on the matter. [43372/09]
The second progress report by the Monitoring Committee was presented to me in early November 2009 and can be viewed under the Corporate Publications section of my Departments website. The report has been circulated widely to interested parties who have been invited to submit observations on its content, together with a general invitation to raise any issues concerning the Sectoral Plan with the Department, at any time. Arising from that circulation a number of submissions have been received, concerning both the material in the progress report and the content and implementation of the Sectoral Plan. These issues are under consideration within the Department and will be brought to the attention of the Monitoring Committee.
The submissions received have also been considered in the context of the report being completed by my Department under Section 31(4) of the Disability Act 2005. When completed, that report will be forwarded to the Department of Justice Equality and Law Reform for presentation to Government, in December 2009, as one of a suite of reports from Sectoral Plan Departments. The Monitoring Committee is committed to undertaking an examination of the Sectoral Plan taking into consideration the revised remit of the Department since the Plan was published. That process will consider progress achieved to date, submissions from interested parties and the views of the bodies under the aegis of the Department.
66 Deputy Joe Carey asked the Minister for Communications, Energy and Natural Resources if he will seek a strategic partnership with Eircom under the new partnership with a company (details supplied) to roll out fibre broadband to the home. [43258/09]
Government policy pertaining to the electronic communications market in Ireland is set out in "Next Generation Broadband — Gateway to a Knowledge Ireland", which I published in June 2009. The policy paper was developed in accordance with various key principles which are crucial to the development of the market including (i) competition, at platform and service levels, which drives innovation and investment (ii) investment certainty for service providers considering investing in network infrastructure, (iii) investment intervention by Government to bridge any digital divide in cases of market failure and to meet certain of the State's own communication needs, (iv) appropriate regulation.
The policy paper sets out the Government's position that investment in broadband infrastructure is primarily a matter for the private sector, facilitated, where appropriate and possible, by Government (e.g. by providing access to State owned electronic communications infrastructure). Existing policy has facilitated significant progress in broadband roll out and broadband speeds over recent years and my focus will be in continuing implementation of this policy. I do not have any plans for the State to be involved in a strategic partnership with any service provider to roll out next generation broadband. I do however, welcome all plans by service providers across different platforms to invest in high-speed broadband and will ensure that the State provides a supportive environment for such investment.
67 Deputy Fergus O’Dowd asked the Minister for Communications, Energy and Natural Resources the position regarding an all island gas market following the successful completion of an all island electricity market; and if he will make a statement on the matter. [43319/09]
The two regulators, North and South, have been working together since late 2007 to develop joint proposals for the Common Arrangements for Gas (CAG) whereby all players in the gas market could buy, sell, transport and contribute to the development and planning of the natural gas market North and South on an all-island basis. The work of the Regulators has included a Cost Benefit Analysis of the potential mutual economic and strategic benefits of the project. The analysis has shown quantifiable and strategic benefits for the two jurisdictions. Following further independent review of that analysis undertaken on behalf of both Departments North and South, both Minister Foster and myself have agreed that the project has the potential to achieve the strategic benefits identified.
The two regulators are working closely with my Department and the Department of Enterprise, Trade and Investment in Northern Ireland (DETI) on the project. They are also continuing to engage with industry on the development of the high level design for CAG. Work to date has focussed on the key areas of system operations, transmission tariffs and gas quality which are the foundation stones on which the project can be built. The Regulators have also commenced work on security of supply and the retail market. To date, a number of consultation documents have been published and industry workshops held.
In tandem with the work on this project, the EU Third Energy Package aimed at further reform of the European gas and electricity sector includes new rules for the promotion of regional and bilateral solidarity between gas transmission system operators and regulators leading to the establishment of regional gas markets. These are objectives which dovetail very closely with the CAG project. Further work on CAG proposals is being fully informed by the EU internal gas market developments including the structural arrangements for joint operation of the gas networks. With a view to working towards conclusions at an early date on the high level design of the CAG while also achieving compliance with EU legislation I will, over the coming months, be considering the advice from my Department on optimum structural arrangements for CAG and discussing further with my Ministerial colleagues in Northern Ireland.
Implementation of the project would require arrangements to be underpinned by enabling legislation in both jurisdictions as was the case for the Single Electricity Market. In light of work by the Regulators to date and the completion of further analysis by both Departments, I am hopeful that Minister Foster and myself can reach agreement in the coming months on the way forward and agree a clear timetable for the gas industry for progressive delivery of the CAG.
69 Deputy Seymour Crawford asked the Minister for Communications, Energy and Natural Resources if he plans to introduce legislation to facilitate the development of offshore wind energy; and if so, the timescale for same. [43268/09]
The Foreshore & Dumping at Sea (Amendment) Bill 2009 published on 6 November, provides for the transfer of certain functions relating to the foreshore from the Minister for Agriculture, Fisheries and Food, to the Minister for the Environment, Heritage and Local Government. The Minister for the Environment, Heritage and Local Government has confirmed that following the transfer of functions, he will introduce legislative changes aimed at better integrating the foreshore consent processes with the planning processes under the Planning Acts and ensure a fit-for-purpose planning regime for offshore renewable energy developments.
My Department is already working with the Department of Environment, Heritage and Local Government in relation to progressing a new regime for offshore renewable energy and both Departments are liaising with Sustainable Energy Ireland (SEI) and with the renewable energy associations. SEI has also commissioned a strategic Environmental Assessment for offshore renewable energy, which will underpin future developments.
70 Deputy Dan Neville asked the Minister for Communications, Energy and Natural Resources his plans to combine heat and power in public buildings; and if he will make a statement on the matter. [43313/09]
Combined Heat and Power (CHP) is a highly efficient way of generating onsite heat and electricity simultaneously. It can offer significantly reduced energy bills for the end user and is a particularly efficient form of energy generation as it minimises any transmission losses involved in getting power to the site. Traditionally, CHP plants were only used in large industrial units with a high on-site heat load. Increasingly the technology is developing higher efficiency, smaller scale units that are capable of servicing smaller buildings and even down to individual residential scale units.
As this technology becomes more common in the market, smaller commercial premises, including public buildings, can now reduce their energy costs by installing CHP systems. Sustainable Energy Ireland (SEI) administers the Deployment Programme for CHP technologies. The programme was expanded in early 2008 to include dedicated support for Biomass and Anaerobic Digestion powered CHP.
Under the SEI Support Programme a significant number of Public Buildings have taken advantage of the benefits of CHP, or are currently in the process of doing so. For example, three separate academic institutions have installed CHP systems, with a total electrical capacity of 850 kilowatts, and two more are in the process of installing systems with an electrical capacity of 750 kilowatts. In the Health sector, 5 hospitals have already installed CHP systems with a total electrical capacity of 770 kilowatts, and 3 local authorities sites have installed systems with an electrical capacity of 350 kilowatts, with one more in construction.
The Renewable Heat Deployment Programme (ReHeat), which incentivises the installation of biomass boilers, is also open to institutional users of heat, and has already supported the construction of a number of projects where the heat load was not sufficient to justify the expense of a CHP plant. Taken together, CHP technologies and the projects supported by Reheat offer a real and immediate solution to energy costs in these types of institutions by reducing the cost of power and increasing the overall energy efficiency of the buildings.
There are particular challenges for Ireland in achieving significant CHP penetration given our dispersed low density population and the characteristics of the built environment. The improvements in CHP technology and the ongoing work of SEI with the Public Sector and industry will help us to overcome the challenges.
71 Deputy Mary Upton asked the Minister for Communications, Energy and Natural Resources his views on reports that RTE may be charged for the TV licence fee waiver currently in place for older people; and if he will make a statement on the matter. [43369/09]
The issue of "free television licences" under the Household Benefits Package is a matter in the first place for my colleague, the Minister for Social and Family Affairs. The present position is that the Department of Social and Family Affairs compensates my Department for the cost of any "free licences" which it grants under the Household Benefits package. My Department then transfers a proportion of total net television licence fee receipts to RTÉ. Any change in this position would require Government approval.
73 Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources the position regarding the proposed implementation of the Oireachtas channel and the film channel as set out in the Broadcasting Act 2008; the way these channels are to be financed; if they will be put out to tender; and if he will make a statement on the matter. [43343/09]
Part 7, Chapter 6 of the Broadcasting Act 2009 provides for the development of an Oireachtas Channel and a film channel. Part 8 of the Act provides for a right of carriage on the RTÉ digital terrestrial television multiplex in respect of these channels.
The Broadcasting Act 2009 provides that the Commission of the Houses of the Oireachtas may establish a public service channel to be made available throughout the island of Ireland providing coverage of: proceedings of both Houses of the Oireachtas; proceedings of a local authority; institutions under the British-Irish Agreement; other legislatures; and UN, EU and Council of Europe institutions.
The 2009 Act provides that the cost of such a channel would be met from the budget of the Commission of the Houses of the Oireachtas and that no advertising is permitted on the channel.
In relation to the Film Channel, the Act provides that the Irish Film Board may establish a public service channel to be made available throughout the island of Ireland providing coverage of Irish, European and World films including those in the Irish language.
The Act provides that the cost of such a channel would be met from the budget of the Irish Film Board. The Act also provides that the Irish Film Channel can broadcast advertisements.
The development of these channels is therefore a matter for the Irish Film Board and the Commission of the Houses of the Oireachtas respectively.
The establishment of a new Oireachtas channel could provide for extended free-to-air television coverage of the proceedings which take place in the Houses of the Oireachtas and in other democratic fora. The Programme for Government contains a commitment in this regard.
The Irish Film Channel can both add to the diversity of available public broadcasting services and provide a wide audience for the wealth of Irish and foreign films produced and in production.
75 Deputy Ruairí Quinn asked the Minister for Communications, Energy and Natural Resources the way he intends to combat the digital divide; if he is satisfied that those who wish to learn to use the Internet across broad sections of society have an opportunity to learn; and if he will make a statement on the matter. [43349/09]
I refer the Deputy to my reply to Question No. 53 for answer on 13th October 2009.
I would however add, that I will shortly be announcing the outcome of the BenefIT 2 eInclusion grant scheme, which I launched in September this year. As a result of grant assistance to the successful projects under this scheme from the Department, it is envisaged that approximately 7,000 training opportunities will be provided for people who wish to learn to use the Internet will be available throughout the country. These training opportunities, which will be provided in partnership with community and voluntary organisations, will provide for beginners to learn precisely the type of skills our research shows are most in demand — i.e. use of email, basic Internet use, as well as a range of other useful skills including conducting on-line transactions.
The Department is preparing a knowledge society strategy for publication in 2010 and, in that context, will inter alia be looking at the approach to tackling the digital divide, taking account of resource availability. The approach will also entail a stronger focus on meaningful content, raising people's awareness of the content relevant to them so as to promote further engagement and encouraging the providers of online services to focus on the usability of their technologies.
77 Deputy Michael D. Higgins asked the Minister for Communications, Energy and Natural Resources his target for ocean energy technology; when the licence for the grid application was made; when the licence was granted; the number of applications received; the amount of the €26 million announced for ocean energy that will be spent in total for 2009 and 2010; and if he will make a statement on the matter. [43361/09]
Ireland's ocean energy strategy is being overseen and implemented by the Ocean Energy Development Unit in Sustainable Energy Ireland (SEI) working with my Department and in partnership with all key players.
Ocean energy technologies are still at the research and development phase globally. Work towards the commercialisation of ocean energy technology continues in Ireland and abroad. The Government has set a target of 500MW from ocean energy technology by 2020.
The Ocean Energy Development Unit (OEDU) is working on the establishment of a grid connected wave energy test facility. In June 2009 an application was submitted for an exploratory foreshore licence which was awarded in September. The foreshore licence allows for site investigation works at the planned proposed test site location off Annagh Head, Co. Mayo.
Sustainable Energy Ireland through the Prototype Development Fund has approved funding support totalling €4.35m for 12 projects from over 30 expressions of interest received. Aimed at stimulating the development and deployment of ocean energy devices that can generate renewable electricity, the funding will enable the companies to take their proposals and prototypes to the next stage of development.
The expenditure for the ocean energy programme is projected to be in the order of €6 million in 2009. Funding for 2010 will be determined in the Estimates process.
78 Deputy Brian O’Shea asked the Minister for Communications, Energy and Natural Resources his views on the claims that up to 12,000 homes and businesses cannot access broadband of any kind as they are not covered by the national broadband scheme; the provision he will make for these cases; and if he will make a statement on the matter. [43366/09]
It is accepted that even after the full roll-out of the National Broadband Scheme (NBS) there will still be a small percentage of premises that will not be capable of receiving broadband services. This is primarily due to technical and other reasons (suitability of a telephone line, distance from an enabled exchange, no line of sight etc.). The European Economic Recovery Programme includes funding for access to broadband infrastructure in rural areas and my Department is currently considering the design and implementation of such a scheme. This work will include the identification of premises not capable of receiving broadband.
It is hoped to commence this scheme in 2010 and have it completed by 2012. A notification of State Aid has been made to the European Commission as part of the process of securing the necessary approvals for the scheme.
79 Deputy Brian O’Shea asked the Minister for Communications, Energy and Natural Resources the measures he will take to ensure the cost of energy here is tackled in view of concerns expressed by the commercial sector; and if he will make a statement on the matter. [43367/09]
89 Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the fact that energy costs are a major contributory factor affecting economic recovery here; if he has examined ways to reduce these costs at least in line with prices in the most competitive EU member states; if he has measured the degree to which alternative energy sources might be examined to bring this about; if he has sought or received any advice from the ESB or Bord Gáis on such issues; if it is possible for the ESB and Bord Gáis to further reduce energy prices in an effort to alleviate the effects of the current economic climate; and if he will make a statement on the matter. [43370/09]
I propose to take Questions Nos. 79 and 89 together.
Ireland's high energy costs, by comparison with much of Europe, are primarily due to significant dependence on imported fossil fuels, particularly gas, as well a requirement for very significant investment in energy infrastructure, following two decades of under-investment in the networks. The under-investment in networks and power generation posed real risks to security of supply which had become a major concern for enterprise. Ireland also faces structural challenges, including geographic isolation, a small and widely dispersed population and lack of economies of scale in power generation, which lead to a higher cost base in Ireland than in competitor countries.
In the current economic downturn, indigenous business and the inward investment community have become even more concerned about energy costs. The Government has put in place a number of measures to mitigate the cost of energy for business.
All electricity users benefitted in 2009 from direct subsidies totalling €567m. These were made up of an ESB rebate to consumers of €315m, a repayment of certain Public Service Obligation (PSO) levies of €87m and the deferral of some network revenues until after October 2009.
The Government agreed in July that these subsidies will continue for large energy users at their current level until October 2010 and will then be phased out over the following two year period. In a number of cases this will see businesses paying up to 40% less for electricity compared with what they were paying in 2008.
In addition, arising from their mid-year review of energy prices, the Commission for Energy Regulation (CER) lowered electricity prices for all customers by 10% and gas tariffs by an average of 12% for domestic and SME gas customers from May 1st 2009.
The CER's most recent pricing decision approved an average decrease in gas tariffs of 9.8% with effect from 1 October 2009. The decrease was made possible by the downward shift in recent months in wholesale gas prices. Small to Medium businesses have also seen further average reductions in their electricity bills of 5.5% from 1 October as the new CER tariff decisions came into effect.
The CER also recently announced that the Public Service Obligation (PSO) Levy will be zero for 2009/2010. The PSO is the mechanism through which we support the security of our energy supplies, including peat, and the development of wind power in Ireland.
The level of capacity payments, that compensate electricity generators for their long run costs, will also be 15% lower in 2010 compared with 2009. This represents a direct saving to all electricity consumers in 2010.
Taken together, these actions will benefit all businesses, including both large energy users and SMEs, by significantly reducing the level of energy costs they would otherwise face in 2009/10.
Working with the CER, my Department is also investigating the scope for further permanent structural changes to our electricity tariffs that will benefit business. These changes include some rebalancing of network tariffs from 2010, as well as recovering carbon windfall gains from electricity generators.
The CER is also about to commence work on a 5-year review of network expenditure. These reviews are designed to ensure that ESB, EirGrid and BGE make even greater efficiencies in operational and capital expenditure, thus driving down costs to all consumers. CER will ensure that this review is rigorous in the interests notably of mitigating energy costs for business.
The Government remains firmly committed to increasing competition as the best means of exerting downward pressure on electricity prices, and also towards ensuring diversity of energy supply to reduce our exposure to high and volatile external energy prices. Significant progress has been made to date, most notably with the all-island Single Electricity Market now in place, the sale of ESB generation capacity, entry of new players and new generation capacity coming on-stream in the Irish market.
The development of supplier competition in the Large Energy User (LEU) market has meant that since 2006 the CER no longer regulates prices for this sector. ESB Customer Supply now supplies less than 10% of this market. The four main independent suppliers are Energia, Bord Gáis, Airtricity and the independent ESB Independent Energy. The Enterprise community acknowledges that there is a robust competition in the LEU supply market with the suppliers very actively competing for customers.
There is also active competition between electricity suppliers in the SME market and companies can avail of discounts of up to 10%-20% simply by switching suppliers. Already approximately 60% of SMEs have made this switch and are experiencing the benefits.
Energy support programmes, offered by Sustainable Energy Ireland (SEI), are proving very successful in helping businesses reduce their energy usage and hence their costs. In the past two years SEI has given free advice and training to over 1500 businesses in the SME sector and has advised that every single business has identified immediate savings, typically greater than 10% of costs. Total business cost savings from the programme already total close to €60 million per annum, which is in addition to savings of a similar scale in the SEI Large Industry Energy Network.
Firms in this Network include some of Ireland's major employers and represent a significant proportion of Irish export income as well as accounting for 61% of all industrial energy use. In addition to the significant annual savings achieved by firms in this network, Irish industry is also developing an international reputation for its efficiency activity.
80 Deputy Kathleen Lynch asked the Minister for Communications, Energy and Natural Resources the position regarding the installation of pilot scheme smart electronic meters; when will this be rolled out to every home as per the programme for Government; the cost for the pilot scheme and the estimated cost for the roll out to every home; the geographic locations of the pilot scheme; if the introduction of a micro generation strategy will be facilitated; and if he will make a statement on the matter. [43353/09]
The Smart Metering Programme is progressing in line with the commitment in the Government's Energy Policy Framework and the Programme for Government. The Smart Metering Programme is a central component of the strategy to radically enhance management of energy demand deliver smart networks and to deliver greater energy efficiency through the use of cutting-edge technology. Smart Metering is also increasingly being seen at European Union level as a critical dimension of energy demand management in the interests of consumers and businesses.
Ireland's smart meter project covers both electricity and gas. The pilot phase of the programme, which encompasses two strands, technology and customer behaviour, is now underway. Technology trials are testing a number of advanced metering systems and their associated IT and communications infrastructure. Customer behaviour trials are determining the potential of smart meters to achieve measurable change in consumer behaviour. The trials are essential to ensure that the optimum and most cost effective technology and systems are identified for the implementation phase.
The electricity element of the pilot phase is expected to be completed at the end of December 2010. It is important to have a trial that captures seasonal changes in usage for peak demand management purposes. The outcome will be a fully informed decision on the most suitable model of smart meter/IT system, tariffing structure, communications system and demand stimuli. The model must have the proven capability to deliver the anticipated benefits of smart metering, taking account of the specifics of the Irish energy system.
The electricity technology trial will examine metering functionality and supporting information and communications systems. Installation of up to 8,000 meters has commenced for technology testing in Limerick/Ennis, Cork City/Bandon and South Dublin/Wicklow.
Over 6,000 participants for the electricity customer behaviour trial have been selected to ensure that the sample is representative of Ireland's electricity consumers both in terms of usage profiles and geographical spread. Installation of 6,363 meters for this trial has been completed and the data benchmarking period is in progress. This trial will go live on 1 January 2010.
The specifications of these metering systems will allow the testing of a range of functionality to deliver enhanced demand management. These include interval metering reading, time of use tariffing and the use of In Home Display devices. They will also provide reliable quality data on actual energy use which will lead to significantly better services to consumers in areas such as, improved fault monitoring and outage recording, power quality monitoring, reduced theft and losses and improved network planning.
The gas element of the pilot phase is also moving ahead. Installation of over 1,900 meters for the Customer Behaviour Trial is on schedule for completion by end November. A further 750 meters will be installed to facilitate the Gas Technology Trials. The gas customer behaviour and technology gas trials will go live in June 2010 and will continue until May 2011.
The smart metering pilot is proceeding in parallel with the current microgeneration initiative and there are important links between the two. The data gathered from the interval meters being used in the microgeneration scheme will provide vital information on the import and export of electricity, which will feed into the analysis of electricity use being carried out in the electricity element of the smart metering pilot. In turn, the findings of the smart metering pilot will also inform the development of a long term microgeneration strategy.
The present estimated cost of the pilot project is €34.9m. This comprises €29.9m for the electricity element and €5m for the gas element. The cost of a national roll out will be determined on foot of the results of the pilot programme and decisions taken on the optimum type of cost effective smart metering system that will deliver the level of functionality required in an Irish market.
A key component of the pilot phase is the associated cost benefit analysis, which will critically inform future decisions. An interim analysis will be completed next year with the final analysis, to include the results of the gas trials, to be completed by mid 2011.
81 Deputy Olwyn Enright asked the Minister for Communications, Energy and Natural Resources the number of MANs across the country that are currently not in use. [43282/09]
Phase I of the Metropolitan Area Networks (MANs) Programme has delivered optical fibre based networks to twenty-seven towns and cities throughout the country. All twenty-seven are operational and open for business and thirty-six service providers are currently offering services on twenty four of the Phase I MANs. Three of the Phase I MANs are not currently used by service providers. These are: Carrickmacross, Gaoth Dobhair, and Kingscourt. While these networks are not yet being used, the significant increase in the demand for bandwidth is leading to greater demand for fibre based products and services. Therefore these MANs will be used at a future time.
An additional fifty-nine MANs covering sixty-five towns have been built under Phase II of the Programme. One other Phase II MAN is currently under construction and is expected to be completed in early 2010. Following a competitive procurement process, the Department appointed e|net as the Management Services Entity for the Phase II MANs on 8 July 2009. The Phase II MANs are being taken over by e|net on a phased basis. It is expected that this process will be completed by quarter three of 2010. Seven of the Phase II MANs are already being used by service providers and additional connections are expected as the handover process continues.
Analysis undertaken by e|net shows that up to 570,000 end users are provided with electronic communications services by service providers connected to the MANs.
83 Deputy Mary Upton asked the Minister for Communications, Energy and Natural Resources his views on the need for an additional pumped storage facility; his further views on the Spirit of Ireland proposal; and if he will make a statement on the matter. [43368/09]
The "All Island Grid Study" published early last year, examined the ability of the electricity systems on an All-Island basis to absorb power from renewable energy powered projects.
Without being prescriptive, the study's findings showed that penetration of up to 42% renewable electricity is technically feasible without any major increase in pumped storage. There are however, a number of different perspectives on the potential role for pumped storage in an electricity system with very significant levels of renewable energy.
In order to further explore the various perspectives and current analysis, Sustainable Energy Ireland in conjunction with UCD hosted a seminar on energy storage on 4 November. The presentations made at the seminar are available on the Sustainable Energy Ireland Website.
It is also the case that several private parties, including the Spirit of Ireland group specifically referred to by the Deputy, are developing renewable energy proposals which are predicated on pumped storage projects.
The promoters of the Spirit of Ireland project presented their proposal last May, during a series of meetings with my Department, with other Departments as well as with the ESB, EirGrid and the Commission for Energy Regulation. I also met the Spirit of Ireland group myself.
These early initial meetings gave us a good preliminary insight into this highly ambitious and complex proposal. The promoters themselves acknowledged at that stage that there were very many elements to the project which needed detailed evaluation and analysis. They signalled that they would revert in the autumn to me and my Department with the results of this work. My Department will be meeting the promoters in the near future for further discussions on their proposals.
85 Deputy Joanna Tuffy asked the Minister for Communications, Energy and Natural Resources if he will comment on the exclusion of those on low incomes from the home energy saving scheme; the reason there is a minimum requirement that the grant amount in the first application must be €500 or greater; if his attention has been drawn to the fact that this excludes those who only require a cavity wall insulation; and if he will make a statement on the matter. [43358/09]
The Home Energy Saving Scheme, which is administered by Sustainable Energy Ireland (SEI), provides grant assistance to homeowners for energy efficiency retro-fitting measures including attic and wall insulation, very high-efficiency boilers, heating controls and Building Energy Rating (BER) assessments.
Persons on low incomes are not excluded from the Home Energy Savings Scheme. It is, however, clearly important to strike a balance between value for money in relation to the cost of the investment in delivering energy efficiency savings measures and the value of those energy savings to the economy. SEI has therefore put in place a requirement that applicants to the Scheme install measures attracting a minimum grant payment of €500. The minimum grant threshold serves to ensure value for money to the Exchequer, while encouraging homeowners to take a holistic approach from the outset to improving the energy efficiency of their homes. The success of the Scheme to date reflects the appetite among homeowners to make energy efficiency improvements. There are currently 27,000 approved applications in the system, representing in total a take-up of over 50,000 measures. Roof and cavity wall insulation are proving the most popular. This clearly shows that householders are availing of the combinations of measures to secure grants.
The Warmer Homes Scheme, also administered by SEI, is specifically targeted at low income households. Some €20 million has been provided to the Warmer Homes Scheme for 2009. This represents a very substantial increase on previous years. This Scheme provides for the installation of a range of energy efficiency measures at little or no cost to the homeowner. The measures include cavity wall insulation, attic insulation, boiler lagging jackets, draught proofing measures and Compact Fluorescent Lamps (CFLs). Details of this Scheme are available from Sustainable Energy Ireland (SEI).
The Warmer Homes Scheme is expected to support energy efficiency interventions in up to 15,000 low income homes in 2009.
The Minister for the Environment, Heritage and Local Government has also set aside some €25 million for two initiatives designed to address thermal inefficiencies in local authority dwellings. Of this, €20 million has already been allocated to local authorities to improve the energy efficiency of dwellings and apartment complexes, to a BER standard of C1. €5 million has been set aside to support a number of demonstration projects that will achieve a BER rating in excess of C1 and will inform the future improvement of the overall local authority stock.
87 Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources if, in view of the Special Group on Public Service Numbers and Expenditure Programmes report into public expenditure, if he will comment on the possibility of merging the Broadcasting Authority of Ireland and ComReg; his views on the overall proposals for his Department from this report; and if he will make a statement on the matter. [43351/09]
The possibility of merging the Broadcasting Authority of Ireland and ComReg is one of a range of proposals made by the Special Group on Public Service Numbers and Expenditure Programmes in relation to my Department. These proposals are being considered in the context of the 2010 Estimates and Budget preparations. It would not be appropriate for me to comment further at this stage on any of the proposals pending the outcome of the Estimates and Budget processes.
94 Deputy Ciarán Lynch asked the Minister for Communications, Energy and Natural Resources if the annual accounts for 2008 of the Central Fisheries Board have been published and laid before Dáil Éireann; if not, the reason for the delay; the timeframe for publication; and if he will make a statement on the matter. [43341/09]
As outlined to the House in response to Question No. 394 on 10 November 2009, under Section 14 (1) of the Fisheries (Amendment) Act 1999, the Central Fisheries Board is obliged to submit draft annual accounts to the Comptroller & Auditor General (C&AG) no later than three months after the end of each accounting period year.
The Board is then obliged to submit to the Department as soon as may be but not later than one month after an audit by the C&AG a copy of its annual accounts, together with his report.
The present position is that the C&AG is expected to complete his audit of the 2008 annual accounts shortly. Upon receipt of the audited accounts and report I will lay copies of both before each House of the Oireachtas in accordance with Section 14 of the Fisheries (Amendment) Act, 1999.
95 Deputy Kathleen Lynch asked the Minister for Communications, Energy and Natural Resources the status of the decentralisation programme for his Department; the cost of securing a site for this project and any ongoing associated costs; and if he will make a statement on the matter. [43352/09]
The decentralisation programme as originally announced in December 2003, included the proposal to relocate the Headquarters of my Department to Cavan.
As announced by the Minister for Finance in his statement of 14 October 2008, the Government has deferred decisions on the timing of the implementation of elements of the decentralisation programme including that of my Department, pending a review in 2011.
Issues relating to the purchase of a site in Cavan town for the proposed decentralisation and the cost of rental of offices there for the existing advance party are a matter for the Office of Public Works.
