7 March 2002 Edition
Doherty calls for all-island energy market
We need an affordable, nuclear free, renewable energy-powered all-island energy market. This was the major finding of a report published this week by the Enterprise, Trade and Investment Committee of the Six-County Assembly. The report has cross-party support, including the DUP.
One year in the making, with 32 written and 29 oral submissions to consider as well as investigations into the viability of different of different forms of energy supply, Commission chairperson Pat Doherty's report makes 45 recommendations aimed at bringing down fuel prices, eradicating fuel poverty and contributing to the reduction of greenhouse gas emissions.
Speaking to the Assembly, Doherty said: "The recommendations cover a wide range of energy related issues, including: the targeting of exorbitant electricity prices, improving energy efficiency, the development of forms of renewable energy, gas network extensions, the benefits of an All-Ireland energy market and the rejection of nuclear energy as an option.
"From the privatisation of the electricity industry in 1992, electricity consumers have received a raw deal with higher electricity prices while shareholders of the generation companies and Viridian/NIE enjoy handsome profits. The Committee is determined that this anomaly be addressed as quickly as possible and will decide if a consumer bond buy-out option of these contracts is the most feasible way of achieving this once the consultation exercise is complete.
"The Committee is strongly of the opinion that the issue of fuel poverty which presently affects 170,000, that's 28% of households in the North, must be tackled by a cross-departmental Ministerial Taskforce strategy.
"The Committee made a number of recommendations relating to improving energy efficiency which would, if adopted, not only help to reduce energy waste for the consumer but would contribute to the reduction of greenhouse gases.
"Perhaps the most exciting aspect of energy is the potential created by the development of renewable energy sources. The Committee recommends that we should have a target of 35% electricity generation from renewable sources by 2020, with an interim target of 15% by 2010.
"The Committee also recommends the establishment of a Renewable Energy Agency be considered to ensure the co-ordination of this strategy to implement the development of renewable energy sources. There are job opportunities in research and development and in the construction, installation and maintenance of machinery. In rural communities biogas technology offers real possibilities or job creation and crop diversification for farmers by the growing of willow coppice. Gasification may also assist in the problem of the disposal of animal waste.
"The extension of the natural gas network beyond greater Belfast and the development of a new electricity generation plant at Coolkeeragh will be a major factor in helping to alleviate fuel poverty in homes here. In order to make extensions to the pipeline viable the Committee agrees that the postalisation of both electricity and gas costs is required, and must be borne equally and equitably by all commercial and domestic consumers. This will ensure that all consumers pay the same tariffs and receive the same benefits regardless of their location.
"In recent years the increased capacity of interconnection between NIE and ESB means that the NIE system is no longer working in isolation. Soon there will be 940 Megawatts of interconnection between the two systems. The gas networks are also to be co-joined in the future with a planned gas connection between Gormanstown and Belfast. The Committee welcome these developments as a larger All-Ireland network with Britain and Europe will open the electricity and gas markets to greater competition. More interconnection needs to be developed - this needs to be done in tandem with common approaches both to the fiscal regimes and charging policies, effective regulation and strong consumer protection. There are clear benefits for a single transmission operator across the all-Ireland market and active consideration must be given to this recommendation.
"The Committee was unanimous in recommending that Ireland remains a nuclear-free zone and in calling for the closure of those plants in Britain that directly impact on the people of Ireland.
"The sourcing of clean and affordable energy is one of the greatest challenges facing modern society. I hope that the issues raised and the recommendations put forward in this Report will open up the debate about energy and inform the strategy about how we meet our future energy needs."
DETI Committee Energy Inquiry recommendations
Fuel poverty, which affects 28% of households in the North, must be tackled by a cross-departmental ministerial taskforce strategy
The anomaly created by the privatisation of the electricity industry in 1992 where consumers were levied with higher electricity prices while shareholders of the generation companies and Viridian/NIE enjoy handsome profits must be addressed
A target of 35% electricity generation from renewable sources by 2020, with an interim target of 15% by 2010
The establishment of a Renewable Energy Agency
Public information campaigns to encourage the use of green electricity
Grant-aid should for domestic consumers seeking to obtain energy from renewable sources
Tax breaks for investors to encourage the use of green electricity with the aim of eventually reducing the cost of green electricity in comparison to fossil fuel generated electricity
Electricity and gas costs must be borne equally by domestic and commercial users
Protection for consumers with responsibility returned to an adequately resourced General Consumers Council
A single transmission operator across the all-Ireland market
The Executive should investigate the possibility of abolishing the Government royalty tax and reducing the differences in corporation tax on the island to enable companies to trade in a fair and equitable all-island energy market
Ireland remains a nuclear-free zone
The closure of west coast nuclear plants in Britain
One year in the making, with 32 written and 29 oral submissions to consider as well as investigations into the viability of different of different forms of energy supply, Commission chairperson Pat Doherty's report makes 45 recommendations aimed at bringing down fuel prices, eradicating fuel poverty and contributing to the reduction of greenhouse gas emissions.
Speaking to the Assembly, Doherty said: "The recommendations cover a wide range of energy related issues, including: the targeting of exorbitant electricity prices, improving energy efficiency, the development of forms of renewable energy, gas network extensions, the benefits of an All-Ireland energy market and the rejection of nuclear energy as an option.
"From the privatisation of the electricity industry in 1992, electricity consumers have received a raw deal with higher electricity prices while shareholders of the generation companies and Viridian/NIE enjoy handsome profits. The Committee is determined that this anomaly be addressed as quickly as possible and will decide if a consumer bond buy-out option of these contracts is the most feasible way of achieving this once the consultation exercise is complete.
"The Committee is strongly of the opinion that the issue of fuel poverty which presently affects 170,000, that's 28% of households in the North, must be tackled by a cross-departmental Ministerial Taskforce strategy.
"The Committee made a number of recommendations relating to improving energy efficiency which would, if adopted, not only help to reduce energy waste for the consumer but would contribute to the reduction of greenhouse gases.
"Perhaps the most exciting aspect of energy is the potential created by the development of renewable energy sources. The Committee recommends that we should have a target of 35% electricity generation from renewable sources by 2020, with an interim target of 15% by 2010.
"The Committee also recommends the establishment of a Renewable Energy Agency be considered to ensure the co-ordination of this strategy to implement the development of renewable energy sources. There are job opportunities in research and development and in the construction, installation and maintenance of machinery. In rural communities biogas technology offers real possibilities or job creation and crop diversification for farmers by the growing of willow coppice. Gasification may also assist in the problem of the disposal of animal waste.
"The extension of the natural gas network beyond greater Belfast and the development of a new electricity generation plant at Coolkeeragh will be a major factor in helping to alleviate fuel poverty in homes here. In order to make extensions to the pipeline viable the Committee agrees that the postalisation of both electricity and gas costs is required, and must be borne equally and equitably by all commercial and domestic consumers. This will ensure that all consumers pay the same tariffs and receive the same benefits regardless of their location.
"In recent years the increased capacity of interconnection between NIE and ESB means that the NIE system is no longer working in isolation. Soon there will be 940 Megawatts of interconnection between the two systems. The gas networks are also to be co-joined in the future with a planned gas connection between Gormanstown and Belfast. The Committee welcome these developments as a larger All-Ireland network with Britain and Europe will open the electricity and gas markets to greater competition. More interconnection needs to be developed - this needs to be done in tandem with common approaches both to the fiscal regimes and charging policies, effective regulation and strong consumer protection. There are clear benefits for a single transmission operator across the all-Ireland market and active consideration must be given to this recommendation.
"The Committee was unanimous in recommending that Ireland remains a nuclear-free zone and in calling for the closure of those plants in Britain that directly impact on the people of Ireland.
"The sourcing of clean and affordable energy is one of the greatest challenges facing modern society. I hope that the issues raised and the recommendations put forward in this Report will open up the debate about energy and inform the strategy about how we meet our future energy needs."
DETI Committee Energy Inquiry recommendations
Fuel poverty, which affects 28% of households in the North, must be tackled by a cross-departmental ministerial taskforce strategy
The anomaly created by the privatisation of the electricity industry in 1992 where consumers were levied with higher electricity prices while shareholders of the generation companies and Viridian/NIE enjoy handsome profits must be addressed
A target of 35% electricity generation from renewable sources by 2020, with an interim target of 15% by 2010
The establishment of a Renewable Energy Agency
Public information campaigns to encourage the use of green electricity
Grant-aid should for domestic consumers seeking to obtain energy from renewable sources
Tax breaks for investors to encourage the use of green electricity with the aim of eventually reducing the cost of green electricity in comparison to fossil fuel generated electricity
Electricity and gas costs must be borne equally by domestic and commercial users
Protection for consumers with responsibility returned to an adequately resourced General Consumers Council
A single transmission operator across the all-Ireland market
The Executive should investigate the possibility of abolishing the Government royalty tax and reducing the differences in corporation tax on the island to enable companies to trade in a fair and equitable all-island energy market
Ireland remains a nuclear-free zone
The closure of west coast nuclear plants in Britain