Vol. 913 No. 3
5. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources the commitments in the programme for Government on improving mobile telephone coverage and his timetable for action; and if he will make a statement on the matter. [16180/16]
Question No. 5 is in the name of Deputy Michael McGrath but I understand that Deputy Dooley will introduce it.
We were talking about rural Ireland and rural constituencies and the Minister will be well aware of the difficulty encountered by many people who use mobile phones in rural areas and the propensity for call drop-out on a very regular basis. In my view and in the view of many of my constituents there has been a significant deterioration in the quality of that network over a period. What is the Minister's view on how he would ensure an improvement in the existing mobile network?
I thank Deputy Dooley for that question. The programme for a partnership Government commits to the establishment within 100 days of a mobile phone and broadband task force which will consider immediate measures to address telecommunications deficits in rural Ireland. My Department is engaging with the Department of Arts, Heritage and the Gaeltacht in regard to the terms of reference for the task force to ensure delivery of the programme for Government commitment within the timelines set out. It is likely that the task force will involve a number of Government Departments and agencies, as well as engagement with telecommunications operators. My Department has already conducted a number of meetings with vendors and mobile operators to help inform the process and identify what tangible measures can be taken. I intend to set a challenging timeframe for the delivery of actions arising from this task force.
The provision of mobile telephony services is undertaken by telecommunications service providers operating in a fully liberalised market under licences provided by the Commission for Communications Regulation, ComReg. It is subject to a requirement to secure access to the required radio spectrum by way of licence. The management of the radio spectrum is a statutory function of ComReg and, accordingly, I have no statutory responsibility in this matter.
I am aware, however, that licences issued by ComReg apply terms and conditions on mobile network operators such as quality of service and minimum population coverage obligations. The design of the network is a matter entirely for the operator concerned although operators tend to exceed their minimum coverage requirements for commercial reasons. ComReg monitors compliance with licence requirements by means of bi-annual drive tests. I understand that current testing is designed to cover all national primary and secondary routes, with measurements being performed on all mobile networks.
There are several ways in which improved wireless broadband and mobile services can be achieved. This includes the Government and local authorities working to reduce barriers to the deployment of telecommunications infrastructure through better planning laws and processes, and working with telecommunications operators to improve information on various aspects of their activities, including upgrades and changes in their networks. My Department continues to liaise closely with industry and other relevant Departments and agencies to assist in the commercial deployment of telecommunications networks and this will be a focus of the mobile phone and broadband task force.
Additional information not given on the floor of the House
A programme for a partnership Government also commits to measures to assist in the roll-out of the network once a contract under the national broadband plan is awarded. In this regard, the Minister, Deputy Humphreys, will lead on the establishment of county or regional broadband task forces, working with local authorities, local enterprise offices, Leader groups and other relevant agencies to help accelerate the broadband network build in rural Ireland, once a contract or contracts have been awarded. These measures should also assist in the roll-out of mobile telecommunications services.
The commercial telecommunications sector has invested over €2 billion in upgrading and modernising networks which support the provision of high speed broadband services, including acquiring spectrum under ComReg's 2012 multi-band spectrum auction for roll-out of 3G and 4G mobile services. These investments will further improve the coverage and quality of broadband and mobile voice and data services throughout the country, although I understand that some temporary disruptions to service have been encountered as upgrades take place. ComReg is also planning the further release of spectrum to assist in the roll-out of wireless services, particularly in rural areas.
I thank the Minister for his reply. He will be aware that in 2012 ComReg awarded a number of individual rights to use the spectrum that provides for 4G services and certain conditions were applied at that time to provide minimum coverage obligations of, I believe, 70% of the population, and many operators claim to be providing that service or in excess of that. That is fine when it comes mobile broadband and all the additional services that reside thereafter. The issue is about access to basic telephony. Interestingly, under a UK 2014 agreement, all four of its mobile operators have collectively agreed to guarantee voice and text coverage from each operator across 90% of the UK geographic area by 2017. That should set the template for us in ensuring that voice calls and texts are at least accessible. We do not expect to be able to access enhanced fast download speeds on mobile phone in every rural or remote area.
We spoke about the importance of being able to direct an ambulance to the location of an accident when we dealt with an earlier question. Cellular telephony and technology has provided the greatest tool in getting ambulances and emergency services quickly to the site of an accident but accidents happen in rural and isolated areas and, sadly, in many cases there is a delay in getting personnel there because of the poor coverage. I humbly suggest that the Minister examines what has happened in the UK and the arrangement that has been made between its commission and the operators to put in place something along those lines about achieving 90% coverage of the landmass. There is no doubt that anybody familiar with the geography of the UK would recognise that it is as testing, or probably more testing, than the topography of our own landscape, therefore, it should be possible to reach 90% to 95% coverage for mobile calls and texts.
On the Deputy's comment regarding what has happened the UK, we will look at that. It is a matter for ComReg but we will look at what is happening in UK. My Department works very closely with colleagues in the UK.
Vodafone has 98% 3G coverage and 95% 4G coverage, Meteor has 99% 3G coverage and 75% 4G coverage, 3 has 96% 3G coverage and 73% 4G coverage but that is on the basis of population. Approximately 70% of premises are in about 4% of the land area, and therein lies the problem. A number of actions have to be taken. There are bottlenecks in the system and we will consider the Deputy's suggestion. If anyone else has suggestions on that, I would be happy to examine them.
I had a meeting earlier with Vodafone Ireland and Vodafone International at which we raised this issue and their representatives made the point about development contributions. To take my constituency as an example, the development contribution in County Galway per telecommunications mast is €20,000 but across the River Suck, in County Roscommon, it is zero. There is a huge variation across the country in that regard and that is part of the problem.
Another part of the problem is that the demand for data is increasing dramatically. The volume of data on the landline network across Europe is doubling every 40 months and on the mobile network it is doubling every 18 months. That conflict is part of the problem. We need to examine how we can roll out infrastructure quicker, and not just wireless and mobile infrastructure because that needs to be backed up by fibre broadband. It is about engaging with local authorities, dealing with anomalies such as this and with issues of road opening licences and access to ducting. The cost of existing ducting is a significant problem.
I believe we can make significant progress if all of us work together, engage with our own local authorities, deal with the challenges that exist and use the existing State infrastructure available to us to try to roll out that network.
Do I have another minute?
No. I have to cut off the debate when the six and a half minutes have concluded. I have been liberal-minded with the Deputy in allowing him go over time-----
You are awful hard.
-----but I am anxious that we deal with as many questions as possible. Deputy Dooley has 30 seconds to introduce the next question.
6. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources if Ireland is on track to meet binding European Union 2020 renewable targets; the fines that will be realised if these are not achieved; and if he will make a statement on the matter. [16220/16]
The Minister is well aware of the binding commitments made in the European agreement, Towards 2020, regarding renewable targets. Significant fines will accrue to the State if those are not achieved. Will the Minister outline his views on our position in that process and if he expects we will reach the targets set out?
The Deputy should do the lotto on the way home. He has done very well in the lottery on this occasion.
The 2009 EU Renewable Energy Directive 2009/28/EC set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. In order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources. We also plan to achieve 12% renewables in the heating sector and 10% in transport. The Government has adopted a range of support measures designed to meet our binding target and although good progress towards our target has been made to date, meeting the 16% target remains challenging. Provisional data from the Sustainable Energy Authority of Ireland, or SEAI, indicates that we had reached 9.2% of the overall 16% target at the end of 2015. In the electricity sector, the primary support mechanisms introduced for renewable electricity are the alternative energy requirement, or AER, schemes and the renewable energy feed-in-tariff, or REFIT, schemes. These schemes have proved successful at incentivising the development of the renewable electricity generation capacity necessary to meet our 40% renewable electricity target. Provisional figures show that in 2015, some 25.3% of electricity demand was met by renewable sources.
In the heating sector, my Department is working on the introduction of a new renewable heat incentive, or RHI, to support the deployment of renewable energy in the sector. The primary aim of the RHI is to build on the progress already made in heating and to help reach our 12% target by 2020. In 2015, it is estimated that 6.8% of heat was derived from renewable sources. In the transport sector, Ireland aims to meet its renewable target mainly through the increased use of sustainable biofuels with electric vehicles also making a small contribution. In 2015, provisional figures indicate 5.7% of our energy needs in the transport sector were met from renewable sources.
In the event of a member state not meeting its targets, the renewable energy directive sets out arrangements to purchase compliance and thereby avoid infringement proceedings by the EU Commission. These include a flexibility measure known as a statistical transfer. While the precise cost of purchasing statistical transfers or of any potential shortfall in Ireland's target of 16% has yet to be established and will depend on a number of factors, the focus remains firmly on meeting our 2020 target. The SEAI has estimated that the cost to Ireland may be in the range of €100 million to €150 million for each percentage point Ireland falls short of the overall 16% renewable energy target. The energy White Paper, Ireland's Transition to a Low Carbon Energy Future, published in December 2015 sets out a vision for transforming Ireland's fossil-fuel based energy sector into a clean, low carbon system by 2050. The clear focus of my Department is on implementing the range of actions set out in the White Paper and the programme for Government which are aimed at meeting our energy and climate change targets.
I thank the Minister. From discussions I have had with the sector generally, it would appear that we are on target with regard to meeting 40% of electricity demand from renewable generation. There is a great deal of concern around the heat sector and I look forward to the proposals the Minister has on encouraging home owners to be more efficient in the way they manage their heating requirements. My reading and discussions with the industry indicate that there is no expectation we will meet the target on the transport side of things. The Minister referred to biofuels, about which there was a great deal of talk a number of years ago and in respect of which there were some interesting pilot programmes. No more than the Minister, those of us in the House travel the country quite a bit and I do not know when I last saw any reference to biofuels or any station providing them. There is widespread concern that we are in trouble in regard to those two aspects. The sooner the Minister can bring the proposal on heat to the marketplace the better. That is great, but we have a big problem in regard to biofuels and the transport sector and the Department will have to take a lead. It is not going to come from transport or anywhere else. Hopefully, the Minister can bring proposals to the House on that in due course.
There is no doubt that there is a challenge in regard to transport. It is an uphill struggle for us, mainly because we are technology takers. We are not big car manufacturers and we are not a big market. As the Deputy knows, electrical vehicles are useful in big cities, but they will not be a solution in rural Ireland given the type of batteries we have. I am very supportive of and have met with Commissioner Cañete on a number of occasions. The Commissioner is ensuring that additional investment is being made in battery technology, because that is the solution to the electricity quandary. When that technology is available, all we can do is be ready to accept it.
On the heat sector, we can make significant progress. The cheapest barrel of oil is the one which is not burned. If we can reduce the cost of heating and energy for families by making their homes more energy efficient, that will reduce the amount of energy they use. To give the Deputy a simple statistic, the SEAI tells me that there are 1 million home heating boilers in the country which need to be upgraded. If they were, it would reduce the cost of heating homes and make them far more efficient. Today’s Irish Examiner indicates that EPS, a company in Cork, has spent €200,000 on upgrading the energy efficiency of the homes of its own employees. It is the equivalent in the energy sector of the cycle to work scheme. Employers get involved, assist with carrying out assessments on homes and assist with upgrading them. The families get interest free loans which they pay off against the savings they make. That is an innovative approach we need to support.
7. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources if he will consider introducing an opt-in provision for customers in the national smart metering programme; and if he will make a statement on the matter. [16236/16]
There are proposals out there on the introduction of smart meters. While it is recognised that there are benefits to a smart metering programme, meters are not for everybody. Unless one has particular characteristics in the way one uses electricity, they may not benefit one. Is it the Minister's view that they should be rolled out on an opt-in basis whereby if somebody wants one, he or she can have it or does he expect that they will be rolled out and provided to everybody regardless of choice?
The EU's third energy package stipulates that "where roll-out of smart meters is assessed positively, at least 80% of consumers shall be equipped with intelligent metering systems by 2020". In Ireland, the national smart metering programme, which includes both electricity and gas meters, is managed by the Commission for Energy Regulation. The regulator is developing a cost-benefit analysis on the roll-out of smart meters. The cost-benefit analysis results are due in the first quarter of next year and that will be the key determinant in relation to the scale, scope and timing of the roll-out. The roll-out will include replacement with new smart meters of electricity meters by ESB Networks and gas meters by Gas Networks Ireland.
I have been informed by the regulator that a customer who does not want an upgraded meter will be able to decline to have this new meter installed. However, the intention is that the default position will be the installation of a smart meter for newly constructed dwellings and other premises or where meters are due for replacement at the end of their life. It is important to recognise that the full benefits associated with smart meters will only be realised by people using this technology to change their behaviour by reducing their energy usage or moving their use to times when energy costs less. To help inform people, the regulator is working with the network companies, energy suppliers and consumer interest groups to develop the necessary information for people on the benefits of smart meters. As a result, people will have greater awareness of the benefits and be more likely to view the roll-out of smart meters positively.
It seems the Minister is referring to an opt-out rather than an opt-in, and one that will not be mandatory. I have some concerns in that this has the potential for unfair pressure being placed on a cohort of people who are often referred to as fuel-poor customers. What is effectively being put in place is a technology that can charge more at peak times. That is helpful if someone is in a position to manage his or her budget, but it could be used unfairly in respect of a certain cohort.
I hope that all aspects are made clear to consumers. The installation of meters is a cost that must be borne by them. I know how they will be sold by the organisations, namely, that one can manage a fuel bill better and consume energy at cheaper times. However, we all know that if one uses electricity at 1 a.m., it is cheaper for the companies, but one cannot feed children and large families cannot be expected to do their washing or drying at that time.
I thank Deputy Dooley for raising that concern, as it had not yet been raised with me directly. I would be concerned by anything like that happening.
The approximately 500,000 meters that must be replaced will be replaced with smart meters. I do not know whether there will be an option at that stage to opt out. In terms of the cost-benefit analysis, there is still a question mark over whether there will even be a general roll-out. Within 12 months of a smart meter being installed, the energy company must provide the customer with the option of time-of-use tariffs, but it is up to the customer to decide whether to accept it or use the current flat-rate tariff. No decision has been made to phase out the existing charging regime. Even if a smart meter is installed in a house, a person will still receive the same charging structure. People can opt into time-of-use tariffs.
The Deputy may correct me if I am wrong, but his concern seems to be more about the time-of-use tariffs than the smart meters. I appreciate that it may be an issue and something that needs to be addressed, but I will allay the Deputy’s fears. The Commission for Energy Regulation, CER, has carried out a number of consultations on this matter and engaged with several consumer interest groups, including the Society of St. Vincent de Paul and the Money Advice & Budgeting Service, MABS. We will take these concerns on board and have them addressed in the overall context. It is important that there be an uptake, that this measure only be positive and that there be no stick to penalise any family.
8. Deputy Shane Cassells asked the Minister for Communications, Energy and Natural Resources the rate at which the public service obligation, PSO, is levied on electricity bills; his views on increasing this; and if he will make a statement on the matter. [16205/16]
I welcome the opportunity to contribute. I wish the Minister well in his role and look forward to working with him closely in the months ahead in order to ensure that he instructs EirGrid to run its cables underground and save us from the proposed monstrous pylons that would otherwise desecrate County Meath.
What are the Minister’s views on increasing the PSO levy on electricity bills for hard-pressed families? Is it justified?
I wish Deputy Cassells the best of luck, not just for the current term but also for a long-term career in the House.
The PSO levy has been in place since 2001 and consists of a set of support schemes designed to facilitate the Government's electricity policy objectives for renewables, indigenous fuels and security of supply. It also supports employment in the renewables and peat industries.
The PSO has supported the connection of more than 2,000 MW in renewable energy to the electricity grid and will continue to support the development of renewable energy so that we can meet our target of 40% renewable electricity penetration by 2020.
Recent international studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the EU.
The calculation of the level of the PSO is a matter for the CER. The CER has published a consultation on the proposed levy of €441 million for the period 2016 to 2017, equating to just less than €7 per month for domestic consumers and representing an increase on 2015 of €1.61 per month or €19.32 per year. The greatest drivers for the proposed levy increase are the lower predicted wholesale market electricity price and increased deployment of renewables.
I am conscious of the impact of energy costs on industry and households alike. As the wholesale electricity price is falling, this decrease should be passed on to domestic electricity customers and more than outweighs the proposed levy increase in the current period. In that regard, I am pleased that some electricity suppliers have recently reduced their prices. Consumers can also avail of discounts either by contacting their suppliers directly or using the price comparison websites accredited by the CER, such as bonkers.ie and switcher.ie, to switch to discounted tariffs. A customer consuming the average amount of electricity could save over €150 by switching suppliers.
I thank the Minister. This morning, many Deputies discussed bin charges but the PSO increase of €20 for a residential customer and €65 for a small business is another hit on families and small businesses that are trying to survive, and all to create a fund of some €300 million for promoting renewable sources of energy such as that produced by wind turbines, a technology that is being forced on small communities in my county of Meath from Loganstown and Carlanstown to Longwood in the south. Communities do not want them, never mind what I already mentioned in the context of EirGrid.
Ireland has the third highest average price of electricity in the EU at €1,900 per annum. I am concerned by the high retail energy prices. The Minister stated that some providers had reduced their prices. However, any decrease will be negated by the planned PSO levy increase of more than 30% in October. He referred to the CER but does he believe that this increase is justified, given the current scenario?
Electric Ireland's reductions in the past two years have amounted to approximately €184 per electricity customer, which is multiples of the PSO levy increase. SSE Airtricity recently announced discounts. A 5% discount on electricity would save €60 on a typical annual bill of €1,200, and an 8% discount could be applied to any customer who moves to direct debit billing. Given that the PSO levy accounts for just under €20, which is a small percentage of the overall bill, it is more than made up for by the reductions.
The PSO levy exists for a purpose, namely, to support wind and biomass. A significant biomass project to come on stream in the Deputy's constituency will be supported by the levy. There are other renewable energy projects. Every Deputy has contacted me about biomass, biogas, pyrolysis, solar and wind projects across the country.
All are funded through the PSO. As the Acting Chairman would know, the levy also supports two peat-fired power stations in the midlands, namely, in Lanesborough and Shannonbridge. It is specifically to deal with energy security. A complex calculation is used but there is a specific purpose. The cost of renewables in this country is far lower than anywhere else in Europe.
I acknowledge what the Minister said about the proportion of the overall bill attributable to the PSO. The fact still remains that the price is still going up at a time when people can least afford it. Wholesale prices decreased by some 30% but the retail equivalent was only 5%. The decrease is not reflected in people's bills.
9. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources his plans for developing an alternative energy sector in line with current and future requirements, the need to meet carbon dioxide emission reduction targets and the need to ensure a robust and reliable energy grid; and if he will make a statement on the matter. [16168/16]
This question is to ascertain the extent to which the Minister proposes to lay the foundations for a reliable and robust energy grid, which will obviously have to be sustained with renewable energy, and the extent to which he expects to meet emissions targets at the same time. This is similar to the question on the grid asked a few minutes ago.
I do not need to wish Deputy Durkan, of all people, longevity here in this House.
The White Paper on Energy Policy has set out a vision for a low-carbon energy system in Ireland, where greenhouse gas emissions from the energy sector will be reduced by between 80% and 95%, by comparison with 1990 levels, by 2050, and where alternative and renewable energy will play a dominant role in Ireland’s future energy mix. In addition, the programme for Government sets out a range of priority climate actions and interventions, a number of which have a direct bearing on the energy sector. In combination, these will help to increase and diversify Ireland’s renewable energy mix across the electricity, heating and transport sectors.
Work is now ongoing to examine the design and cost of introducing a new renewable electricity support scheme, RESS, to encourage the development of Ireland’s abundant and indigenous renewable energy resources. This scheme will examine the viability of supporting a range of new renewable energy technologies in Ireland, including solar, bioenergy and ocean energy, and will help to further reduce emissions in the electricity sector.
During this transition, maintaining a robust, secure electricity grid for the benefit of all electricity consumers will be paramount. EirGrid’s Delivering a Secure, Sustainable Electricity System, DS3, programme and the future energy scenario planning exercise will ensure the electricity network is designed to meet the transition to a low-carbon energy future in a secure manner.
In the heating sector, my Department is working on the introduction of a new renewable heat incentive, RHI, to support the deployment of renewable energy for commercial and industrial users of heat in the non-ETS sector. The primary aim of the RHI is to build on the progress already made in the renewable heat sector and help to reach Ireland's 12% renewable heat target by 2020. In 2015, it is estimated that 6.8% of heat was derived from renewable sources. The new RHI scheme is expected to become available in 2017.
In the transport sector, Ireland aims to meet its 10% renewables target mainly through the increased use of sustainable biofuels, with electric vehicles also making a small contribution, out to 2020. Provisional figures indicate 5.7% of our energy needs in the transport sector in 2015 were met from renewable sources. Our renewable transport target will be largely met through the biofuels obligation scheme, which has been in place since 2010. It will increase the percentage of biofuels in transport fuels between now and 2020.
The Government recognises the importance of fostering the development of other energy-related technologies, such as biomass, solar, energy efficiency technology, offshore technology and smart meters, all of which can support the future transition to a low-carbon energy future.
I congratulate the Minister on his assuming office, and I also congratulate his colleague. I reciprocate the good wishes offered and hope the Minister reigns for many a year and enjoys it.
To what extent has the Minister tested the targets? I would like him to refer in particular to the use of electric motor cars. To what extent can these cars replace cars running on conventional fuels? Are the targets in this regard much lower than I would have anticipated?
Is the Minister satisfied with the robustness of the various provisions to meet the challenges ahead given that agriculture must continue to exist, that emissions will continue and that the requirement in terms of economic development is likely to increase? Is the Minister satisfied that, with continued economic growth in this country, it will be possible to meet the targets? Have these already been factored into the projections?
One would want about a week to get through all the questions. In any case, I will start with renewable transport technology. There is a binding target of 10% set. The Deputy is saying he believes it is low. The officials in my Department are telling me it would be very challenging to meet the target. The reason is we have not had the take-up in regard to electric vehicles that was projected or expected. This is mainly because the technology has not developed internationally to the extent that it should have.
At one of my meetings with Commissioner Cañete, who is in charge of energy and climate action, he made the point that the European Union is now investing significantly in developing battery technology that will result in longevity so that if one is going to Belmullet, one will be able to get there and back with one charge.
In fairness to the ESB, it has rolled out the charging network across the country. At present, electric vehicles are very useful in large urban conurbations but there is still a challenge in rural areas. Therefore, the current focus is on biofuels, in addition to putting in place structures such that when the technology develops internationally, we will be in a position to seize it.
10. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources his plans to expedite the roll-out of genuinely high-speed broadband to rural areas; and if he will make a statement on the matter. [16119/16]
As the Minister knows, the most urgent step in rural areas is the rolling out of real high-speed broadband. I look forward to getting details from the Minister on the progress made since he entered office. I seek assurance from him that we will not be told a speed of 30 Mbps is high-speed broadband in the modern world. I hope he will be aspiring for at least 100 Mbps, and ideally 1 Gbps.
The national broadband plan aims to deliver high-speed services to every city, town, village and individual premises. A programme for a partnership Government commits to the delivery of the plan as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and through State intervention in areas where commercial investment is not forthcoming. The formal procurement process for the State intervention commenced in December 2015.
The high-speed broadband map, which is available at www.broadband.gov.ie, shows the extent of the State intervention area, which is the subject of procurement. The areas marked blue represent those areas where commercial providers are either currently delivering or have previously indicated plans to deliver high-speed broadband services. The Department continues to monitor the commercial deployment plans in the blue area to ensure those services are delivered. The areas marked amber on the map represent the target areas for the State intervention. The map provides information on a county-by-county basis with a breakdown of coverage across the townlands in every county.
More than 750,000 premises are the focus of the procurement process, which formally commenced in December 2015 with the publication of the pre-qualification questionnaire and the project information memorandum. Five responses were received from prospective bidders to this stage of the competitive procurement process by the deadline of 31 March 2016.
The second stage in the procurement process will be a formal invitation to participate in dialogue to short-listed bidders. I expect that my Department will move to this stage in the next month. The third stage of the procurement process involves the issue of final tender documentation which follows the dialogue process. Following the submission of final tenders by bidders, a winning bidder or bidders will be selected for the contract which will comprise one or two lots, as set out in the national broadband plan intervention strategy. The Department will then enter into formal contract negotiations with the winning bidder or bidders. It is expected that a contract or contracts will be awarded by June 2017.
As part of the competitive process, the Department will engage with the winning bidder or bidders on the best roll-out strategy in order to target areas of particularly poor service, business needs and-or high demand. This will need to be balanced with the most efficient network roll-out plan. A prioritisation programme will be put in place in this regard in consultation with the Minister for Regional Development, Rural Affairs, Arts and the Gaeltacht. A detailed roll-out plan for the network will be published once the contract or contracts are in place.
The programme for a partnership Government commits to measures to assist in the roll-out of the network once a contract is awarded. In this regard, the Minister, Deputy Humphreys, will lead on the establishment of county or regional broadband teams, working with local authorities, local enterprise offices, Leader groups and other relevant agencies to help accelerate the broadband network build in rural areas once a contract or contracts have been awarded.
I thank the Minister for the large amount of information he provided. The amber on the map may no longer be amber because one telecommunications company has indicated it intends to cover a significant part of the area in question privately and commercially, starting this year. Will this be taken into account when the contracts go to tender, as proposed next February, because it appears the Minister is aiming at a moving target? Will he confirm that the Department still considers speeds of 30 Mbps high-speed broadband and that the tender will seek minimum speeds of 30 Mbps? While I accept that the speed can be increased, is it the case that the Department will legally accept 30 Mbps under the tender? Does the Minister consider such a speed adequate in the modern world given that all the providers have far exceeded it? For example, all the advertisements feature broadband speeds of at least 100 Mbps. We should seek to have speeds of 1 Gbps available to every premises and get the job done once and for all.
Have the Minister's officials indicated to him when the final house will be connected through the national broadband scheme? I have asked a series of specific questions to which no doubt I will receive specific answers.
The minimum requirement is 30 Mbps. The contract will include a provision for a review every three to five years. If, therefore, in five or ten years demand in Cornamona is for 40 Mbps, 50 Mbps or 60 Mbps, it must be possible to achieve these speeds under the contract. This process is future-proofed for the next 25 years. In 20 years, 100 Mbps may be completely inefficient and speeds of 1 Gbps may be required to meet needs. The contract will allow for such flexibility.
The Deputy also asked a question related to areas where an operator is rolling out the broadband network. Any operator which has announced plans to roll out high-speed broadband services has been invited to submit details of its plans to the Department in order that they can be assessed. The criteria for assessing these plans were published on the Department's website in October 2015. Any operator seeking to have its plans reflected in the high-speed broadband map in the amber areas must sign a specific commitment of agreement, the heads of which have been published on the Department's website. If contractors are prepared to sign a contract to deliver high-speed broadband to house A, B and C, we will amend the map. However, not one single operator has signed such a contract.
The time for the question has expired.
I have one final brief question.
I will allow the Deputy to put his question because I allowed the Minister great latitude. However, I do not want to exhaust other Deputies' time.
The minimum broadband speed of 30 Mbps provided for in the plan is utterly redundant and I am disappointed the Minister is buying the Department's line on the issue. Why are all the companies opting for speeds of 100 Mbps? What will happen if a company does not sign a commitment to deliver high-speed broadband but subsequently provides broadband services?
The Department has been engaging directly with all of the commercial providers, not one of which has been prepared to commit. Deputies have all been given promises that broadband would be provided in particular villages by particular dates and it has not happened. Many of us have ended up with egg on our faces. We are willing to amend the map but if we are to do so, a contractor must put pen to paper. It is as simple as that. Wireless and wired operators may be advertising speeds of 100 Mbps but Deputy Ó Cuív should ask people living in the areas concerned whether they are getting this speed. The Department has set a speed of 30 Mbps as a minimum requirement. Some people have asked me to examine the model in place in the United Kingdom. The requirement for rural areas of the UK is only 10 Mbps, which is completely inadequate.
11. Deputy Mick Barry asked the Minister for Communications, Energy and Natural Resources his views that the Electricity Supply Board should consider reducing its charges for electricity, given its reported profits of €635 million in 2015; and that high energy prices are being maintained to make the Electricity Supply Board an attractive proposition for privatisation. [16116/16]
The ESB clocked up profits of €635 million last year. Surely the Minister is not satisfied with the minimal 6% cut in electricity prices by Electric Ireland. Does he agree that the company must go much further than this? Does he believe the ESB is being fattened up for privatisation?
The electricity and gas markets are commercial, liberalised and competitive and operate within national and European regulatory regimes. I have no statutory function in the setting or review of electricity or gas prices. Price setting by all electricity suppliers, including the ESB's Electric Ireland, is a commercial and operational matter for the companies in question.
Responsibility for electricity and gas market regulation is a matter for the Commission for Energy Regulation, CER, which is an independent statutory body. The CER ceased regulating retail electricity prices in 2011 and retail gas prices in 2014. Business and domestic customers may avail of competitive offerings from a number of supply companies. The competitive energy market results in choice for consumers and businesses in terms of suppliers, products and prices, exerting downward pressure on prices. Under various relevant statutory instruments, the CER carries out statutory market monitoring functions and has responsibility for ensuring the market operates competitively for the benefit of the consumer.
On 29 April last, Electric Ireland announced a 6% reduction in its unit rate for domestic electricity consumers and on 18 May, the company announced that its customers could avail of additional savings of up to 8.5%. On 1 May 2016, SSE Airtricity announced a 5% electricity and 5% gas price cut and an 8% reward discount by moving to direct debit and e-billing. While I do not have a statutory role in the setting or review of energy prices by energy supply companies, I welcome these reductions.
The level of profit in ESB fluctuates due to market forces over which I, as Minister, have no control, nor do I have any function in the matter of the regulation of electricity or gas prices. The figure of €635 million does not take into account ESB debt and taxes paid to the State. The company's profit for 2015 after tax is €286 million. It is vital that the ESB is resourced to enable it to reinvest in maintaining generation capacity and the electricity network. There is no question of the ESB being privatised.
The Minister sounds a little like Pontius Pilate because he is washing his hands of the issue. When one strips out taxes and levies, electricity prices here are the second highest in the European Union. Regardless of how one looks at it, the ESB made bumper profits last year, yet the price cuts announced by Electric Ireland were minimal by any standards.
While I welcome what the Minister has said about the ESB and privatisation, is it not the case that prices are being kept high to allow the private companies on the market, which are uncompetitive, to compete, rather than give price cuts to ordinary families?
I will address Deputy Barry's last question first. Prices are not being kept high. No one in this country can keep prices high because they are unregulated. There is an open market. Representatives of ESB tell me the company makes little of its money from the Electric Ireland arm. Thankfully, ESB is in the black and making profits a little short of €300 million. A considerable amount of this profit comes from other arms of the company, including the network and electricity generation arms. I am told that of the pre-tax profits generated by the ESB, approximately 14% relate to the retail arm.
Other companies in the sector make margins as well. It does not seem to me to be excessive. The CER is accountable to the House and the relevant Dáil committee. I call on Deputy Barry to make direct contact with the Chairman of that committee and bring the commissioners before the committee to quiz them on the issue.
There the Minister goes again. Like Pontius Pilate, he is washing his hands of the situation. I will ask the Minister a far simpler question. How does the Minister feel about the fact that consumers in this country are paying the second highest electricity rates in the European Union, while, at the same time, the ESB is making profits which, whether we use the Minister's figures or my figures, run to hundreds of millions of euro?
Electricity prices are higher here than in most parts of Europe. However, we need to remember that Ireland is on an island. We have a small electricity market. It includes the North and South and we have had reference to the single electricity market on the island of Ireland. There are geographic issues.
The other point is that we have to import a substantial amount of our energy. We are not self-sufficient in the energy sector and that adds to the costs. As a result of the size of the market, there are additional transmission costs and such costs are not incurred in continental Europe. As a result these particular challenges are built into the cost.
I am not trying to wash my hands of it. By law I cannot directly intervene in this matter. However, Deputies can question the Commission for Energy Regulation. I am calling on Deputy Barry to use the tools available to him in the parliamentary committee to raise these questions.
The next question is in the name of Deputy Sean Fleming. I gather it has been assigned to Deputy Shane Cassells.
12. Deputy Sean Fleming asked the Minister for Communications, Energy and Natural Resources to support putting the North-South electricity interconnector underground using high-voltage direct current technology; and if he will make a statement on the matter. [16229/16]
Will the Minister support the undergrounding of the North-South interconnector using the technology now available? Will the Minister put a halt to the current plan? It would destroy the landscapes of Meath, Cavan and Monaghan if these monstrous pylons were to be constructed in these three counties.
In fairness, all Deputies in the region have contacted me at this stage on this issue. EirGrid is the designated transmission system operator. Its roles include the operation, maintenance and development of the electricity transmission network in Ireland. As detailed in the Government policy statement on the strategic importance of transmission and other energy infrastructure, the Government does not seek to direct EirGrid in the development of energy infrastructure to particular sites or routes or technologies.
EirGrid made a formal application for a North-South 400 kV interconnector project to An Bord Pleanála on 9 June 2015. This is the subject of a statutory independent planning process and is currently before An Bord Pleanála. Part of this process included an oral hearing that concluded last month. As the planning process is still ongoing, it would not be appropriate for me to comment further.
I know the Minister is an altogether decent man. I am appealing to the Minister, on behalf of the people of these counties, to become involved because this is a major issue for the counties of Meath, Cavan and Monaghan. Not only would it destroy the landscapes of these counties, it would destroy people's homes. I have sat in the homes of people throughout County Meath. These monstrous pylons will be built beside their homes and will destroy their lives. It is amazing to think that in 2013 the EirGrid chairman, John O'Connor, sat before a Dáil committee and said he would not want to live beside one of these pylons. However, he seems to think it is good enough for the rest of the people in these counties.
The North East Pylon Pressure Campaign is led by Aimée Treacy and Padraig O'Reilly. They have spearheaded a campaign to stop the project but they are being thwarted by the formidable legal people of EirGrid. I was at the High Court hearing some months ago when the project was challenged. The Minister's office, under the previous officeholder, and EirGrid used powerful legal teams to fight against the community groups. We need the Minister to stand up for the people rather than EirGrid. EirGrid is spending money relentlessly on public relations campaigns to try to curry public favour but it is destroying people's lives. I appeal to the Minister to get involved and arrange to put these pylons and cables underground. The people need the Minister to stand up for them.
I understand the frustration among people in this case, but the Government does not direct EirGrid on what mechanism it should use. We need an interconnector. People agree that we need an interconnector. The debate has been how that connection would be made.
The Government has not directed EirGrid in any way in this matter. This project is before An Bord Pleanála at the moment. An Bord Pleanála has weighed up the options and all the arguments on all sides. We are going to get a decision from An Bord Pleanála.
I have read some of the numerous reports into undergrounding. However, the reality is that the North-South transmission project is required to ensure security of supply of electricity to Northern Ireland. The existing 225 kV double circuit overhead transmission line between Louth and Armagh is simply insufficient to meet the needs.
The Minister referred to the An Bord Pleanála hearing. I was there and gave evidence at the hearing in Monaghan as well. Representatives from EirGrid came in on numerous occasions during the hearing and changed aspects of their application during the hearing. They came with images that bore no resemblance to the application. These people are ruthless in the pursuit of their aim and do not care about the people. This Chamber is here to care about the people. The Government can most certainly become involved. The previous two Ministers had no wish to hear from the people's side. Therefore, I am appealing to the Minister not to read out the material prepared by the Department but to listen to the voices. This can be stopped before the September ruling by An Bord Pleanála. We need to see an intervention by Government in this respect.
I have been listening to Members. I have listened to a number of Members from the areas concerned, all of whom have expressed their concerns on this matter. I have not yet come across one person who takes the view that we do not need the interconnector. It is needed because if the existing line were to go down, there simply would not be enough electricity reaching the north east of the island to keep the lights on.
I agree with the Minister.
We have a single electricity market and we need it. It is helping to drive down the cost of electricity for every person throughout the country.
The point is that it should be done underground.
I hear what Deputy Cassells is saying and I have heard and listened to what other colleagues in the House have said as well. I understand the frustration that exists but a statutory process is ongoing.
The frustrating thing is that Pat Rabbitte said the project would drive up prices.
13. Deputy Eamon Ryan asked the Minister for Communications, Energy and Natural Resources if and when he will replace the television licence fee with an alternative funding mechanism; if he is satisfied with the performance of An Post in collecting the current licence; and if he will make a statement on the matter. [16112/16]
I wish the Minister well. He is in a complex and interesting Department. I hope he is here for a good while; I hope we are all here for a good while to tackle some of the issues. How does he think we should fund public service broadcasting?
I have no plans to replace the current television licence fee with an alternative funding mechanism.
I recognise the important part that the independent public service broadcasters play in our democratic society. The provision of stable and adequate funding is essential to ensuring the continued delivery of their role in this regard.
Part 10 of the Broadcasting Act 2009 outlines the statutory basis for the television licence and the associated collection mechanisms. Section 145 of the Act designates An Post as the issuing agent of the Minister with regard to television licences and tasks it with collecting the licence fees. I am satisfied that An Post is meeting its obligations as set out in the Broadcasting Act.
I am very much aware, however, of the challenges that face the existing television licence system, including the current, unacceptable levels of evasion. In that context, my Department has been working with An Post and RTE on an ongoing basis so that all steps are being taken to ensure the system is working as effectively as possible. My Department is also examining a number of additional actions that might be taken, including legislative measures, with the aim of further strengthening the system.
I know it is difficult in government at the moment, particularly with a minority government. Some people are critical and claim the Government will not be able to make a hard call. I have a slight fear that the Minister's answer gives a sense of just keeping things the same or seeing if we can tweak it. In the short run, it may avoid the Government getting into a difficult contentious issue. However, we need to be careful. Broadcasting is an important part of our democratic structures. I am not sure the funding mechanism is working. We may need to consider the wider funding issue in terms of the broadcasting fund for other broadcasters. We should look at the effect of the Internet on other Irish broadcasters. We also need to look at the effect of international broadcasters, including Sky and others which earn huge amounts of money in this country. We need to address the issue of how we protect and provide good-quality public service broadcasting delivered both by the independent sector and by RTE. I am not sure if just tweaking system will do it.
I take the Deputy's point. There was a proposal to introduce a public sector broadcasting charge that would apply across the board. When I came into the Department, I took the decision that efficiencies could be made regarding the television licence. There is a considerable level of evasion, far more than anywhere else where there is a television licence in place. We need to address that issue.
I take on board the Deputy's points about broadcasters. It is important that we have a strong and vibrant broadcasting sector in this country. However, to talk about introducing another domestic charge now and effectively get people to pay again for those who are not willing to pay for anything is unacceptable. There is a significant cohort of people who are not paying for anything. There are issues and anomalies with signing the certificate to confirm they do not have a television and we have to look at that. There are also issues with collection.
It is not just the issue of evasion, although that is an issue. It is also the fact that technology is changing. I do not watch television on a television set too much; I watch it on my phone or my desktop computer. I can understand why the Minister might not want to make a change. However, he should still do the basic underlying research for other options, even if they are introduced in the next year or two. He should start to look at the options so that any future government does not need to go through the same process. Things change in this area very quickly. Leaving broadcasting as a kind of atrophy in a system that is no longer relevant because of technological changes does not do broadcasting a favour. The Minister should keep his mind open to it. Perhaps he could establish a commission, bring people in, bring the Opposition in and look at options. Even if we are not committing to do anything, looking at the options might be a good use of the time we have in the next two to three years.
There are a number of practical steps we can consider in the short term. One of those relates to collection, as I mentioned. There are also issues with the content on all the Irish broadcasters, RTE, TG4 and TV3, being used on other platforms. That is not only an issue for existing traditional providers but also for other technological uses of it. We are looking at many of these aspects. It is not just about the television licence. We will probably introduce legislation in this area, which in consultation with my colleagues in this House I hope can be supported. We are not closing the door on looking at all options. The reality is that there is significant evasion with the current model and I want to address that.
