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Just Transition Fund

Dáil Éireann Debate, Wednesday - 31 March 2021

Wednesday, 31 March 2021

Ceisteanna (236)

Barry Cowen

Ceist:

236. Deputy Barry Cowen asked the Minister for the Environment, Climate and Communications if the application by the ESB to recover the €5 million contribution to local communities on exiting West Offaly and Lough Ree power stations which was allocated to the just transition fund from the public service obligation was successful. [17132/21]

Amharc ar fhreagra

Freagraí scríofa

The PSO levy has been in place since 2001 and is a charge on all electricity customers without exception.

The legal basis for the PSO levy and its method of calculation are set out in regulations made under the Electricity Regulation Act 1999 and the Public Service Obligations Order 2002 (S.I. 217 of 2002). Under this legislation, the Commission for Regulation of Utilities (CRU), the independent electricity and gas regulator, is assigned responsibility for the calculation of the levy each year and the calculation of the Levy is strictly a CRU matter. Under the Act, the CRU is directly responsible for the performance of its functions to a Joint Committee of the Oireachtas, and not to me as Minister. The Deputy may wish to note that CRU provide a dedicated email address for Oireachtas members, which enables them raise questions on matters such as the CRU PSO calculation, directly to CRU at oireachtas@cru.ie for timely direct reply.

The CRU stated in its decision paper on the 2020/21 PSO levy, at https://www.cru.ie/wp-content/uploads/2020/07/CRU20086-PSO-Decision-Paper-2020-21.pdf,  that ESB had sought to claim ex-ante costs of €25.8 for a number of cost items, including its Just Transition Costs of €5 million, and that the ESB had proposed treating these costs as actual PSO costs.  The CRU further stated on these items that it was  currently working with the Department to determine whether such costs are recoverable under the terms of the relevant State Aid Notification and the PSO legislation.  It also stated that as a decision had not yet been reached on whether these costs were permissible under these terms, the CRU was not therefore including these costs in the calculation of the 2020/21 PSO levy.

The Department informed  CRU on 23 December 2020 that the process set out under the legislation is that it is for CRU to determine the amount of additional costs incurred by ESB in fulfilling its obligations under the PSO Order and the Minister and Department cannot intervene in this process or adjudicate between ESB and CRU at any stage of the process. 

Questions Nos, 237 and 238 answered with Question No. 232.
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