Dáil Éireann Debate, Tuesday - 16 July 2013
727. Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the amount on an annual basis from 2007 to date in 2013 provided as a subsidy for Ireland's three peat burning power stations; if all of this subsidy came from the PSO levy; and if he will make a statement on the matter. [35391/13]
Amharc ar fhreagraThe Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for peat generation, for certain conventional generation constructed for security of supply purposes, and for the development of renewable electricity. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers, including the three peat stations. Peat-fired electricity plants are supported by the PSO levy as they contribute to security of supply through the use of indigenous fuels. The levy is paid by electricity customers on their bills. It acts as a price support to peat, renewable and security of supply electricity generation and is therefore not a subsidy paid from public funds.
The particular PSO scheme for peat generation was approved by the European Commission in 2001 and was designed to enable the accelerated closing down by ESB of the then existing six old peat fired plants and the building of two new more environmentally friendly and efficient plants with a 15-year operational lifetime. The PSO also applied to the peat fired plant in Edenderry which is now owned by Bord na Móna. The peat PSO for Edenderry expires in 2015 and Bord na Móna is incrementally increasing the co-firing of biomass with peat. The PSO for the two ESB peat stations expires in 2019.
The specific information requested by the Deputy, including the various breakdowns and historical data, is publically available on the Commission for Energy Regulation’s website at the following link:
http://www.cer.ie/en/renewables-decision-documents.aspx .
