Allister raises energy concerns

23 June 2005

Statement by DUP MEP Jim Allister

“With the European Commission embarking on a major review of progress on energy liberalisation across Europe, I have recently written the letter below to the Energy Commissioner, raising issues which I believe require particular attention as far as Northern

Ireland is concerned.

At the heart of my concern is the domination which ESB may secure in our market with resulting distortion and detriment to consumers. With The ESB controlled Coolkeeragh Station opening today, it is timely that a proper overview is taken of our energy situation. A British Isles-wide energy strategy will best serve our needs, with additional inter-connectors.”

Andris Piebalgs

Commissioner for Energy

EU Commission

B-1049

BRUSSELS

Belgium

16 June 2005

Dear Commissioner

I understand the commission is undertaking a major review of progress with energy liberalisation across Europe. I, therefore, expect that the status of the competitive market in the British Isles and particularly on the island of Ireland will feature in that review.

In my opinion it is imperative that the market structure must produce tangible and real benefits to customers and the general public, with real choice and competitive prices.  In this regard, and in the context of the moves towards an all-island energy approach, I suggest you look carefully at methods to curb market power and promote real competition.  With ESB dominating the market, both generating and supply, in the Republic of Ireland and now having opportunities to involve itself in Northern Ireland, there is a substantial risk of semi-state dominance emerging in and distorting the market. Non market support mechanisms which undermine efficiency must be prohibited.

The risk of the Dublin Government linked ESB dominating the market, with detriment to consumers, can be significantly off-set by EU support for further interconnection with Northern Ireland and Great Britain.  In truth a British Isles wide energy approach is much more likely to protect consumer interests and impede monopoly.

In your review I trust you will also look to improve accountability and transparency of system operators.  The history of ESB in this area is not encouraging.

I hope these considerations will be taken on board in the Commission's review.

Yours sincerely

James H Allister QC MEP

EU Parliament