Dáil Éireann Debate, Wednesday - 12 May 2004
34 Mr. Eamon Ryan asked the Minister for Communications, Marine and Natural Resources when he intends appointing the proposed three person energy regulation commission; if the work of the three regulators will be divided on the basis of energy pricing, security of supply and environmental issues; and if he intends extending their remit to include the regulation of fossil fuel products other than natural gas. [13861/04]
Amharc ar fhreagraIn recognition of the critical role which the Commission for Energy Regulation discharges and the importance of the energy sector to the economy's competitiveness, I decided to expand the commission from one member to three members. This is in line with existing legislative provisions in the Electricity Regulation Act 1999 and is consistent with the expansion of the Commission for Communications Regulation in January 2003.
Since its establishment in July 1999, the role and work of the commission has grown enormously. It now includes responsibility for gas, as well as electricity regulation, and is charged with a range of onerous duties arising from the EU liberalisation agenda. This is the appropriate time to increase the membership of the commission. Officials from my Department have been in contact with the Department of Finance about the requisite ministerial consent to the terms and conditions, including remuneration, of the appointment of the additional members.
The next step will involve the Office of the Civil Service and Local Appointments Commission hosting a selection process for the new energy commissioners. I hope this process will be conducted without delay.
The commission is independent in the performance of its functions, and how it proposes to allocate responsibility within its organisation is a matter for it alone, whether the commission comprises one member or three members. However, I have publicly stated that I want an expanded commission to focus more directly on environmental, consumer and competitiveness issues.
The commission's functions are specified in the Electricity Regulation Act 1999, as amended, and no consideration has been given to extending its remit to include the regulation of other fossil fuel products at this time.
The Minister still has not said when the commission will be in place. Perhaps he is unable to say. He says the matter is now with the Department of Finance and will go to the Civil Service and Local Appointments Commission. I am keen that the Minister should put a date on it. In what quarter does he expect this three person commission will be in place?
The Minister rightly stated that environment was one of the areas of concern. Last week I attended a conference on climate change organised by the EPA in Dublin and attended by leading scientists from around the world. Listening to them, if I were in charge of energy regulation I would require the grid company and others to tell me in three months' time how they would make Ireland's energy 60%, 70%, 80% renewable. I would not want to hear the problems. I would want to hear the solutions, and I would want them in three months' time.
Is it not the problem that the Minister does not have the power to regulate and direct? Unlike the position in telecommunications where he can and has in the past year issued regulations and policy directions, with regard to the energy regulator it does not matter what he or we think; there is no ministerial power to issue directions if we have serious concerns regarding, for example, climate change and the need to change our energy policy accordingly regardless of what engineers say is or is not possible. There may be occasions when we as policy makers must tell the engineers we want to hear not about problems but solutions.
When does the Minister expect the three person commission to be in place? Is it possible in introducing the electricity Bill to return certain powers to the Oireachtas or the Department given that there are certain issues where it is necessary to issue directions and tell the people involved in a particular industry that for broader policy reasons they are required to take a certain direction? Will the Minister consider such a change?
In answer to the first question, it is not within my remit to say when the three person commission will be appointed. I would like to think it will be in a relatively short time, that is, in a few months. It is up to the Civil Service and Local Appointments Commission to determine that and, obviously, it depends on the calibre of the candidates who come forward.
On the issue of renewable energy, since I came into office there has been quite a significant increase in interest in this, particularly in the context of the AR6 contracts. To a certain extent we are the victims of our own success. There are significant technical issues to be addressed. I called together the industry and all the other interests in this area, including the ESB, the regulator and other companies on a renewable energies group which met for the first time this week with a very short time frame to build on the consultation process and the recently issued consultation document on renewable energy.
Regarding directions, I have already pre-empted the Deputy. Legislation is being prepared to give the Minister power to make further directions in the area of energy analogous to the directions already being given and quite successfully implemented in the telecommunications area. That legislation will be brought forward as soon as possible. I would not like to think it would be 2005 before it is brought forward. We had to bring forward quickly the funding legislation relating to the ESB. However, the other legislation is being given priority and it will include power for the Minister to make directions.
I welcome the announcement that the Minister will reintroduce those powers in recognition that the legislation was flawed in that regard. I find it remarkable that the Minister can say we are the victim of our own success when I see the development of biomass and biofuel products in other countries, the development of wind resources, the investment by other countries in new technologies such as wave and tidal technologies where we should take a massive lead, and when I see every block being put in the way of development of renewable energy by the main State companies, the regulatory authorities and by the Minister. I see nothing but failure and lost opportunities in terms of development of cleaner energy technology.
The Minister says I admitted there were technical difficulties. I see nothing but opportunities in this area and I find it remarkable that the Government is not pursuing those opportunities and issuing directions to the State companies and to his Department to make sure we avail of them.
The Deputy is extremely naive if he believes there are no technical difficulties in, for example, putting a massive amount of extra wind on to the grid.
The Government is blind to the opportunities.
If the Deputy does not understand that, I suggest that he should meet those who are involved in the industry. Such people know the difficulties——
I will meet them tomorrow
It is high time that the Deputy met them.
It is high time the Minister saw the opportunities.
People in this House——
The Minister sees nothing but difficulties.
If elected politicians in the House have the same sort of idealistic view about renewable energy
The Minister is full of hot air.
There are difficulties in respect of renewable energy
Where is the biomass?
There are difficulties in respect of technical matters.
Where are the biofuels?
There are difficulties in respect of pricing for the future.
Where is the wave technology?
Those who are pushing renewable energy
Where is the tidal plan?
——should tell the people that renewable energy will actually cost them more.
It will bring huge wealth to this country.
It will hit people in their pockets.
Like peat.
We have heard the usual Green Party obfuscation.
There are huge opportunities.
