Natural gas supply to the ESB
Collins questioned the effect of ESB gas supplies on electricity prices and proposed abolishing the fuel variation clause. Reynolds said electricity pricing was outside his remit, though his Department supplied information to the responsible Department; he also said ESB’s interruptible bulk supply helped bring the pipeline into use and cover development costs.
Regarding the cost of electricity to industrial and domestic consumers, is the Minister aware that there is widespread public concern, especially in view of the fact that there is an oil glut and also because there is a supply of natural gas to the ESB? Would the Minister consider abolishing the fuel variation clause in electricity accounts in view of the fact that it is now within our power to control the price of electricity to both industrial and domestic consumers?
Comment on this
The Deputy should be aware that the price of electricity is a matter for the Minister for Trade, Commerce and Tourism. It is a separate question which should be addressed to another Minister.
Comment on this
The price of natural gas is within the competence of the Minister present, as is the supply of this gas to the ESB. In that context, would he be kind enough to answer the question?
Comment on this
I have already said that the price of electricity is a matter for the National Prices Commission, who are under the aegis of the Minister for Trade, Commerce and Tourism. That Department have received and will continue to receive full information from my Department in relation to various inputs in the cost of natural gas to the ESB. They are fully familiar with the matter when they consider a price application from the ESB or when examining the whole question of electricity charges.
Comment on this
I have rarely come across an occasion on which so many parliamentary questions have been so adeptly avoided by a Minister.
Comment on this
The Minister is aware that the ESB have had their offtake from Kinsale increased to 140 million cubic feet from 1 April. Is the Minister satisfied that this is the most cost-efficient method of utilising natural gas?
Comment on this
The Minister is aware of the situation in relation to usage but I am sure Deputy O'Leary is also aware that bulk customers were needed in order to get the pipeline into use in the first instance and to cover development costs. This is one of the reasons for the supply of gas being made available to the ESB on an interruptable basis. Regarding the contribution of natural gas to electricity prices, my Department keep the other Department fully aware of the quantities they are getting so that this can be taken fully into account in assessing electricity prices.
23.