Dáil Éireann Debate, Tuesday - 24 February 2004
141 Mr. Sherlock asked the Minister for Communications, Marine and Natural Resources his views on reports of further price rises in electricity following an expected asset windfall for ESB resulting from the company’s expected share of the allocation of Ireland’s trading emission allowances; and if he will make a statement on the matter. [5871/04]
Amharc ar fhreagraThe eventual economic outcome of measures, such as emissions allocations and emissions trading, is a complex matter to analyse and continues to be considered by interested parties both in this country and elsewhere. Several analysts are of the view that there will be resultant windfall gains, notably in the electricity generation sector.
Consultants who advised the Minister for Environment, Heritage and Local Government suggested that, in certain circumstances, and based on a postulated cost of carbon of €10 per tonne, that wholesale electricity prices here could increase by 14% leading to a retail increase of7%. This would be lower than the average increase postulated for the EU. I am considering, in conjunction with the Commission for Energy Regulation, what options and measures might be available to mitigate the windfall factor to minimise or eliminate increases in the consumer prices of electricity.
