Written Answers Nos. 364-381
364. Deputy Barry Cowen asked the Minister for Communications, Energy and Natural Resources if he will explicitly seek to have greater competition in the generation sector by encouraging and facilitating more independent generating players to enter the market; and if he will make a statement on the matter. [54266/13]
Amharc ar fhreagraThe regulation of the electricity and gas markets is the statutory responsibility of the Commission for Energy Regulation (CER). The Electricity Regulation Act 1999 provided for the establishment of the CER as an independent statutory regulator. Competition in electricity generation has been facilitated by European legislation and transposed into Irish law. The EU adopted its first package of legislation aimed at the liberalisation of the electricity and gas markets in 1996. This has subsequently been followed by two other packages, the most recent of which was approved in 2009. This legislation has allowed for competition in the electricity generation and in wholesale and retail supply markets.
The Single Electricity Market (SEM) is the wholesale electricity market for Ireland and Northern Ireland. The SEM came into operation on 1 November 2007 and commenced the trading of wholesale electricity in Ireland and Northern Ireland on an All-Island basis. It consists of a gross mandatory pool market, into which all electricity generated on, or imported onto, the island of Ireland must be sold, and from which all wholesale electricity for consumption on or export from the island of Ireland must be purchased. Independent analysis has indicated that the market has worked well and continues to deliver benefits to consumers through the use of efficient generation plant to meet demand across the whole island. The SEM model of setting prices in a transparent and cost reflective manner is not only assisting to promote competition and attract new investment, it has also contributed to improvements in the availability of generation plants.
The structure of the SEM has ensured that generators, including new players, have invested in the market, thus ensuring security of supply. This is evidenced by decisions to invest in the Irish electricity market by a variety of market players. Bord Gáis opened its 440 Mega Watt (MW) Whitegate power station in 2010 and ESB commissioned its 435 MW Aghada power station in the same year. The East West Electricity Interconnector (EWIC) commenced operation in 2012 with a capacity of 500 MW. Scottish and Southern Electricity (SSE) is currently constructing a 460 MW gas-fired power station at Great Island, Co. Wexford, and expect the plant to be operating from 2014. The SEM has also facilitated the connection of over 2,400 MW of renewable energy to the grid.
The SEM will continue to evolve in line with European electricity market developments, bearing in mind the primacy of the electricity customer when considering market evolution.
365. Deputy Barry Cowen asked the Minister for Communications, Energy and Natural Resources his plans to promote smaller players in the electricity market; and if he will make a statement on the matter. [54267/13]
Amharc ar fhreagraThe regulation of the electricity and gas market is the responsibility of the Commission for Energy Regulation (CER). The Electricity Regulation Act 1999 provided for the establishment of the CER as an independent statutory regulator. On 1 November 2007 the Single Electricity Market (SEM) went live, commencing the trading of wholesale electricity in Ireland and Northern Ireland on an All-Island basis. The SEM consists of a gross mandatory pool market, into which all electricity generated on or imported onto the island of Ireland must be sold, and from which all wholesale electricity for consumption or export from the island of Ireland must be purchased.
Regarding smaller players entering the electricity generation market, in order to be built and/or to operate, a generation project must hold an Authorisation to Construct or Reconstruct a Generating Station and/or a Licence to Generate Electricity. The CER is responsible for assessing and for granting or refusing to grant these licences. The conditions imposed in the Authorisation and in the Licence to Generate must be met by the generator and compliance is monitored by the CER on an ongoing basis. Under Regulation 13 of Statutory Instrument No. 60 of 2005, the CER authorises, by way of order, the construction or reconstruction of generating stations with installed capacities not exceeding 2 MW. The approval process is based on the assessment of specific information submitted by the applicant that is less than that required under the full application process and takes into account their limited size and potential impact.
I am mindful of the importance of well-functioning energy markets for business and domestic customers. The Government remains firmly committed to increasing competition as the best means of exerting downward pressure on prices in electricity and gas markets. New players have moved into electricity generation since 1996. I welcome the entry of new players and increased competition.
In the electricity supply markets, the CER has overseen the gradual liberalisation of the electricity supply market which culminated in full market opening in February 2005. The regulatory framework created the appropriate environment for competition to develop and since then competition has increased in the business and domestic markets. In 2010, the CER published its Roadmap to Deregulation, which set out the milestones for the end of price regulation. All business markets were deregulated from 1 October 2010. From April 2011, the domestic (residential) market was deregulated and so all suppliers are free to set their own tariffs. The liberalisation of the electricity supply markets has seen the entry of companies such as SSE/Airtricity, BG Energy, Vayu, Energia, Endesa, PrePay Power and Pinergy. These companies offer competition to Electric Ireland, the supply arm of the ESB.
366. Deputy Barry Cowen asked the Minister for Communications, Energy and Natural Resources his plans to replace outdated plants that occupy valuable capacity payments; and if he will make a statement on the matter. [54268/13]
Amharc ar fhreagraResponsibility for the regulation of the retail electricity market is a matter for the Commission for Energy Regulation (CER), an independent statutory body, and is a matter in which I, as Minister, have no role of function. On 1 November 2007 the Single Electricity Market (SEM), the all-island arrangements for the trading of wholesale electricity, was implemented. The SEM is a gross mandatory pool which includes a marginal energy pricing system and an explicit Capacity Payment Mechanism (CPM). At a high level, the SEM design consists of a centralised and mandatory all-island wholesale pool (or spot) market, through which generators and suppliers trade electricity. Generators bid into this pool their own short-run costs for each half hour of the following day, which is mostly their fuel-related operating costs. Based on this set of generator costs and on customer demand for electricity, the System Marginal Price (SMP) for each half-hour trading period is determined by SEMO, using a stack of the cheapest all-island generator cost bids necessary to meet all-island demand.
The CPM is a fixed revenue mechanism which collects a pre-determined amount of money, the Annual Capacity Payment Sum (ACPS) from all suppliers and pays these funds to all available generation capacity in accordance with rules set out in the Trading and Settlement Code (TSC). The value of the Annual Capacity Payment Sum is determined by the quantity or capacity requirement, determined as the amount of capacity required to exactly meet all-island generation security standard, and a price, determined as the annualised fixed costs of a best new entrant (BNE) plant.
The SEM SMP and associated CPM does not disproportionately reward "outdated" plants. In fact, due to the structure of the SEM more expensive or inefficient generators are "out of merit" and hence they are not run and are not paid the System Marginal Price (which equates to their short run marginal cost), thus keeping customers' bills down.
367. Deputy Barry Cowen asked the Minister for Communications, Energy and Natural Resources in the context of 2020 renewable targets, the action he intends to take with regard to the slow rate of progress of DS3; and if he will make a statement on the matter. [54269/13]
Amharc ar fhreagraEirGrid and the System Operator for Northern Ireland (SONI) have embarked on a multi-year programme "Delivering a Secure, Sustainable Electricity System" (DS3) which is designed to ensure that we can securely operate the power system with increasing amounts of variable non-synchronous renewable generation. Together with the on-going work on infrastructure development (Grid25 in Ireland and Network25 in Northern Ireland) and the addition of renewable generation capacity, the DS3 programme is critical to meeting the all-island renewable electricity requirement of 40% of electricity consumption from renewable sources by 2020. The all-island power system is already operating with one of the highest percentages of renewables anywhere in the world, relative to the size of the system, bringing unique challenges with regard to management of the variability of the generation while maintaining ongoing power system stability and security. The DS3 work programme seeks to address these challenges bringing together many different strands, including development of financial incentive products for better plant performance, and development of new operational policies and system tools to use the portfolio to the best of its capabilities. Standards for wind farms and conventional plant are also being reviewed to give enhanced operational flexibility for the future.
With regard to the DS3 programme, my Department actively monitors progress through representation on the DS3 Advisory Council. This Council, which was set up by Eirgrid and SONI to ensure that all stakeholders are represented within the DS3 programme, provides a forum through which my Department can provide guidance and take action where appropriate.
368. Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources if he has been asked by EirGrid or any other parties to legislate to increase the rights of EirGrid to access private property for the purposes of carrying out investigations or construction work in relation to pylon construction; and if he will make a statement on the matter. [54313/13]
Amharc ar fhreagraNo proposals have been made to me to extend the powers of EirGrid in the manner outlined in the question.
369. Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources the percentage of financial contribution the wind energy sector is contributing to Grid25 or any other grid development or expansion. [54315/13]
Amharc ar fhreagraThe transmission grid provides a vital link between all generators and the users of electricity. It provides physical access for all generators to a central market and it enables all users to avail of electricity from the central market at the most economic rates. EirGrid's Grid 25 Programme is a Government endorsed strategy to develop the transmission network to ensure nationwide safe, secure and affordable electricity supply supporting economic growth, and renewable and sustainable energy.
Annually, EirGrid as Transmission System Operator and the Commission for Energy Regulation, estimate the total revenue requirement in order to ensure recovery of all costs associated with the operation, development and planning of the transmission network in a particular tariff year, of which Grid 25 costs are one component. This revenue is recovered through Transmission Use of System (TUoS) tariffs from all users of the system, including generators and demand customers. There are rules outlining cost sharing of network technical adaptations and these are published by EirGrid and approved by the Commission for Energy Regulation (CER). In general, approximately 25% of network costs are recovered from all generators, including wind farms, with the remainder of the costs being recovered from suppliers and users. Charges to specific generators connected to the system are based on the generator's capacity and are site specific, differing according to the location of the generator. However, where assets are being specifically constructed for the purposes of the direct connection of a party (such as a wind farm) to the transmission network, typically termed its "shallow connection", the generator will contribute 100% of the capital costs for the connection.
370. Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources the real input people will have regarding the roll-out and delivery of the Grid25 project, in view of the fact that it is they who will fund it through higher electricity costs. [54316/13]
Amharc ar fhreagra371. Deputy Jack Wall asked the Minister for Communications, Energy and Natural Resources the purpose of doubling the capacity of the national grid; and if he will provide details of the economic growth projections on which the analysis is based in order to clarify the purpose of increasing the capacity so dramatically. [54320/13]
Amharc ar fhreagraI propose to take Questions Nos. 370 and 371 together.
The Government established the statutory agency, EirGrid, to deliver a safe, secure and affordable electricity supply. EirGrid's Grid25 national programme is vital for future socioeconomic progress in Ireland. Grid25 represents an investment in the transmission system of €3.2 billion over approximately 15 to 20 years, and is central to ensuring Ireland develops a power system that meets our future energy needs in a sustainable manner. Grid25 will reduce our dependency on imported fossil fuels by putting the infrastructure in place to enable us use our own natural resources, help us create less carbon waste and enable us to reach our mandatory 40% renewable electricity targets by 2020.
In the Government Policy Statement on the Strategic Importance of Transmission and Other Energy Infrastructure of July 2012, the imperative for the State Companies, and all developers of energy projects, of having early, transparent engagement and consultation with local communities and stakeholder was emphasised. The Government recognises that people are concerned about the impact of new transmission lines and other infrastructure on the landscape, the environment and local communities. I am aware that EirGrid is fully committed to extensive public consultation and that the company has been engaging in a comprehensive process in regard to the Grid25 projects.
373. Deputy Niall Collins asked the Minister for Communications, Energy and Natural Resources the total amount spent on external IT consultants by his Department in 2010, 2011, 2012 and to date in 2013; the estimated spending in 2014; and if he will make a statement on the matter. [54436/13]
Amharc ar fhreagra375. Deputy Niall Collins asked the Minister for Communications, Energy and Natural Resources if his Department has renegotiated external IT consultancy contracts and costs since March 2011; and if he will make a statement on the matter. [54468/13]
Amharc ar fhreagraI propose to take Questions Nos. 373 and 375 together.
My Department has not incurred any expenditure on external IT consultants in the years in question. The Information Systems Services Division of my Department does, however, have contracts with five IT companies for the provision of ICT personnel, who are classed as contractors rather than consultants. The amount spent under this heading is as follows:
|
Company |
2010 |
2011 |
2012 |
2013 |
2014 Expected Spend |
|
Compass Informatics |
€41,980 |
€69,375 |
€85,931 |
€79,815 |
€82,000 |
|
Client Solutions |
€99,642 |
€100,050 |
€97,875 |
€101,572 |
€100,000 |
|
CPL |
€93,060 |
€103,224 |
€104,033 |
€96,408 |
€98,000 |
|
ESRI |
€126,229 |
€126,771 |
€130,464 |
€119,406 |
€128,000 |
|
System Dynamics (2 Contractors) |
€136,568 |
€187,210 |
€199,651 |
€166,377 |
€180,000 |
374. Deputy Billy Timmins asked the Minister for Communications, Energy and Natural Resources the cost of legal action against his Department for the the years 2011, 2012 and to date in 2013; and if he will make a statement on the matter. [54452/13]
Amharc ar fhreagraPayments by my Department arising from legal action including third party costs in the period 2011 to date in 2013 was €480,613.28 broken down as follows:
|
2011 |
2012 |
2013 |
|
€326,596.51 |
Nil |
€154,016.77 |
376. Deputy Simon Harris asked the Minister for Communications, Energy and Natural Resources if he will provide detail in tabular form, in respect of his Department and any agency under his remit, of any exemptions granted to the long-standing general principle of pay policy that the payment of additional remuneration to public servants for undertaking additional duties is not permitted; the additional remuneration involved in each case; the date of sanction for such additional remuneration; the rationale behind such sanction; and if he will make a statement on the matter. [55031/13]
Amharc ar fhreagraI wish to advise the Deputy that in relation to the One Person One Salary policy introduced by the Department of Public Expenditure and Reform and the policy that non-public sector board members may choose to voluntarily reduce or waive their fees as a matter of personal choice in recognition of the current difficult economic circumstances, that both of these policy initiatives have been brought to the attention of the bodies under the aegis of my Department. Staff who represent the Department on boards are not in receipt of any additional payments.
377. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government the amount that has been collected of the outstanding household charge in 2012 and to date in 2013; the number of properties to which the amount collected relates in each year; and if he will make a statement on the matter. [54014/13]
Amharc ar fhreagraThe Local Government (Household Charge) Act 2011 provided the legislative basis for the Household Charge. Under the Act, an owner of a residential property on the liability date has been liable to pay the Household Charge, unless otherwise exempted or entitled to claim a waiver. It has been a matter for an owner of a residential property to determine liability and pay the Charge. The Local Government Management Agency has been administering the Household Charge system on a shared service/agency basis for all county and city councils.
I understand from data provided by the Agency that the number of registrations, including waiver registrations, for the Household Charge was 1,129,521 up to the end of 2012. As of 16 December 2013, the number of registrations, including waiver registrations, stands at 1,304,957. The Household Charge raised €113.9m during 2012. A further €23.4m has been raised during 2013.
Under the Finance (Local Property Tax) Act 2012 outstanding Household Charge liabilities were, on 1 July 2013, increased to €200 and became a Local Property Tax liability collectable by the Office of the Revenue Commissioners. Queries concerning the collection of Local Property Tax liabilities which are former Household Charge arrears should be addressed, in the first instance, to the Revenue Commissioners.
378. Deputy Róisín Shortall asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 135 of 27 November 2013, in which he states that vehicle owners generally who did not avail of the transition arrangements must now pay arrears in motor tax where these arise, if he will outline the exceptions to this policy; and if he will make a statement on the matter. [54018/13]
Amharc ar fhreagraThe Non-Use of Motor Vehicles Act 2013 came into effect on 1 July 2013, replacing the system whereby vehicles were declared off the road retrospectively when next being taxed, with a procedure under which vehicles must now be declared off the road in advance. The Act provided for a three month transition period from 1 July to 30 September 2013 to allow vehicle owners to bring their motor tax status up to date by making both a retrospective and prospective off-road declaration. From 1 October 2013, only a prospective declaration of non-use can be made.
The Act does not provide for exceptions for those who did not avail of the transitional arrangements and owners are liable for arrears from the expiry of the last tax disc taken out for a vehicle. However, on transfer of ownership of a vehicle that is not under current tax, the liability for motor tax of the new owner will arise from the beginning of the month in which the transfer takes place.
379. Deputy Ciara Conway asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that it is not possible for a woman to obtain a housing needs assessment in circumstances where she is not in receipt of permanent social welfare payment, meaning the family is effectively prohibited from applying for housing or rent allowance and is left with limited options; if his Department has taken into consideration that it is virtually impossible for a woman who is owner or part owner of the family home and is out of home for reasons of domestic abuse to have her housing needs assessed; his plans to acknowledge and resolve the aforementioned issues; and if he will make a statement on the matter. [54074/13]
Amharc ar fhreagraIt is open to any person or household to apply to a housing authority for an assessment of their housing need. It is a matter solely for the housing authority concerned to determine whether an applicant for social housing support is eligible for and in need of that support in accordance with the provisions of section 20 of the Housing (Miscellaneous Provisions) Act 2009, regulations made under that section, and having regard to the particular circumstances of the case.
Regulation 22(1) of the Social Housing Assessment Regulations 2011 provides that a household with alternative accommodation that would meet its housing need is ineligible for social housing support. Paragraph (2) of the Regulation clarifies that paragraph (1) does not operate to exclude from eligibility for social housing support an applicant who owns accommodation that is occupied by his or her spouse, from whom he or she is formally separated or divorced. Under the enactment, a deed of separation is sufficient to set aside this ineligibility ground and it is not necessary to await judicial separation or divorce to get a decision on social housing support in these cases. This provision is reasonable in most cases.
I acknowledge, however, that situations relating to household members who have separated may exceptionally arise that may not easily be dealt with under the current Regulations. Persons who are forced to leave their homes due to domestic violence may however be placed in accommodation arranged by local authorities without having to be entered on the waiting list. In the longer term, victims of domestic violence may qualify under section 20 of the Housing (Miscellaneous Provisions) Act 2009 for entry on a waiting list for social housing support if, in addition to meeting the normal eligibility criteria, the housing authority considers that their current accommodation is unsuitable, having regard to particular household circumstances or on exceptional medical or compassionate grounds.
As part of an ongoing review of the 2011 Regulations, my Department is examining such scenarios and in particular whether specific provision is required in respect of separated persons applying for social housing support who own dwellings occupied by spouses from whom they are separated, but where no court order or deed of separation is in place.
380. Deputy Jack Wall asked the Minister for the Environment, Community and Local Government if the Government or EirGrid will commission an independent report into the effects of overhead 440 V power lines on the health and well-being of those who live within 500 m of them; and if he will make a statement on the matter. [54304/13]
Amharc ar fhreagra381. Deputy Jack Wall asked the Minister for the Environment, Community and Local Government if the Government or EirGrid, in examining the potential health affects of the Grid Link project, have considered the long-term effects of living in close proximity to 440 V power lines; the international studies that have been considered; the length of time over which these studies were conducted; where these studies were carried out; and if he will make a statement on the matter. [54306/13]
Amharc ar fhreagraI propose to take Questions Nos. 380 and 381 together.
The issue of the potential health effects of electromagnetic fields was the subject of an Expert Group Report commissioned by the Government and published in March 2007. This Report, entitled Health Effects of Electromagnetic Fields, is available for download on my Department's website (www.environ.ie). The Expert Group reported that the majority scientific opinion was that no adverse short- or long-term effects have been demonstrated from exposure to electromagnetic fields at levels below the limits recommended by the International Commission on Non-Ionising Radiation Protection (ICNIRP).
A substantial volume of research on this issue is being carried out internationally by regulatory bodies with responsibilities for monitoring the health effects of electromagnetic fields. The findings of this research are being monitored by the World Health Organisation's (WHO) EMF Project; it is expected that a report will issue in 2014. My Department will continue to monitor this and other scientific evidence as it is made available, and will consider any policy implications in this context.
