Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 19 and 29 together.

The Commission for Energy Regulation (CER) is statutorily responsible for overseeing electricity network expenditure and in that regard, ensuring cost effectiveness and efficiency of the investment programmes of EirGrid as well as ESB Networks. The cost of investment in the networks is remunerated through charges on all electricity consumers, in line with the regulatory model worldwide, and is not a charge on the taxpayer. The CER examines in detail the capital investment plans of EirGrid in the context of revenue determinations and monitors the plans on an ongoing basis. The latest transmission capital spend review undertaken by the CER was for the period 2011 to 2015 and the outcome of that review is publicly available on the CER's website.

The powers and responsibilities of EirGrid, as the independent transmission system operator are set out in the Electricity Regulation Act, 1999, and a number of statutory instruments including (SI) No. 445 of 2000 and (SI) No. 60 of 2005. Under (SI) No. 445 of 2000, EirGrid has the statutory obligation to "develop a safe, secure, reliable, economical and efficient electricity transmission system with a view to ensuring that all reasonable demands for electricity are met and having due regard for the environment". Moreover, under (SI) No. 60 of 2005, EirGrid has the duty "to plan the long term ability of the transmission system to meet reasonable demands for the transmission of electricity".

The North-South transmission line is vital infrastructure for the island. The lack of sufficient interconnection between the North and South is preventing the full benefits of the all-island market being realised for consumers. The continued absence of the transmission line is costing the economies and consumers, North and South, up to €30 million every year, since without it, the electricity system is more inefficient from an operational perspective.

The case for the transmission line was assessed in detail by the Regulators North and South in 2004. Their assessment included a range of technical and economic studies including NPV analysis. The results of this assessment are included in their 'Joint Report on the Case for a Second North South Interconnector'. This published report includes reference to specific cost savings in the range of €2.3m to €18.9m per annum. There is also a range of benefits, which formed part of the Regulators' criteria in their decision making. These included security of supply, renewable facilitation and increased competitiveness in the all island electricity market. These benefits are significant and strategic criteria which form part of the overall economic and technical case for the transmission line.

Completion of the North South project will further consolidate the all-island electricity market established in 2007, providing for the seamless transfer of electricity across the island, delivering greater competition, reducing the need for further investment in thermal generation and ensuring the availability of low cost generation to the market.