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Written Answers. - Electricity Generation.

Tuesday, 26 November 2002

Dáil Éireann Debate
Vol. 558 No. 1

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 308. Mr. Ring Information on Michael Ring Zoom on Michael Ring  asked the Minister for Communications, Marine and Natural Resources Information on Dermot Ahern Zoom on Dermot Ahern  the subsidy which was paid to the Bellacorrick power station in County Mayo in 2001 under the PSO scheme. [23429/02]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern): Information on Dermot Ahern Zoom on Dermot Ahern No subsidy was paid in respect of Bellacorrick power station in County Mayo in 2001 under a public service obligations – PSO – scheme. The PSO scheme referred to by the Deputy was introduced by ministerial order in May 2002.

The Electricity Regulation Act, 1999, (Public Service Obligations) Order 2002, S.I. No. 217 of 2002 (PSO Order). directs the Commission for Energy Regulation to impose public service obligations on ESB which will require ESB to purchase, up until 31 December 2019, at the latest, the output of certain peat and renewable-alternative electricity generating stations in the interests of security of supply and environmental protection respectively.

The PSO order will lead, inter alia, to the construction and commissioning no later than 2005 of two new peat stations by ESB, at Shannonbridge and Lanesboro, in line with the orderly closure of existing peat stations. The new peat stations will be in addition to the peat station at Edenderry built by the Finnish energy company Fortum, which came into commercial operation in December 2000.

The PSO order provides for the introduction of a PSO levy on final electricity customers, with effect from 1 January 2003, to compensate ESB for the additional costs incurred in complying with these public service obligations. It is important to note that the cost of these sources of electricity is already embedded in ESB's franchise tariff and therefore, on introduction of the PSO levy, an appropriate adjustment will be made to separately identify the PSO levy on electricity bills, on a basis approved by the Commission for Energy Regulation.


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