Electricity Regulation Act, 1999

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PART VI

Public Service Obligations and Transitional Arrangements

Public service obligations.

39.—(1) The Minister, following consultation with the Minister for the Environment and Local Government, shall by order direct the Commission to impose on the Board and holders of licences or authorisations, or holders of a permit under section 37 of the Principal Act, public service obligations which may include obligations in relation to—

(a) security of supply,

(b) regularity, quality and price of supplies,

(c) environmental protection, and

(d) use of indigenous energy sources.

(2) Notwithstanding the generality of subsection (1), an order made by the Minister under this section may require the Commission to impose on the Board a requirement to make such arrangements as are necessary to ensure that, in any calendar year, there shall be available to the Board a specific quantity of electricity from—

(a) generating stations which use as their primary energy fuel source peat harvested within the State provided that the amount of peat used in any calendar year to generate that quantity of electricity may not exceed 15 per cent. of the overall primary energy necessary to produce the electricity consumed in the State that year, and

(b) generating stations chosen as a result of a competitive process established by the Minister, the Commission or the Commission of the European Communities, as the case may be, which use as their primary fuel source such renewable, sustainable or alternative forms of energy as may be specified in the order or which operate as combined heat and power plants.

(3) Notwithstanding the generality of subsection (1), an order made under this section may provide for—

(a) the imposition of a public service obligation on the Board in respect of electricity which is produced using indigenous fuel or renewable, sustainable or alternative forms of energy as their primary source or which operate as combined heat and power plants as a result of a competitive process established by the Minister or the Commission of the European Communities prior to this enactment, and

(b) measures designed to encourage effective and efficient use of electricity and to reduce demand for electricity.

(4) The Minister shall send a copy of an order made under subsection (1) to the Commission of the European Communities not later than 28 days after the making of the order.

(5) Subject to subsection (6), an order under this section shall provide for—

(a) the recovery, by way of a levy on final customers in respect of electricity provided to such customers, of the additional costs including a reasonable rate of return on the capital represented by such costs, where appropriate, incurred by the Board or holders of a licence or an authorisation in complying with an order under subsection (1) including costs incurred after the variation or revocation of such an order,

(b) the collection of payments in that respect by the Board or a holder of a licence or an authorisation,

(c) the making, out of such payments so collected, of payments to the Board and holders of licences or authorisations, as appropriate.

(6) An order made under this section which, in accordance with subsection (5), provides for the recovery of additional costs referred to in that subsection shall provide that such costs shall be recovered in respect of a specified period of years and that the amount to be paid in respect of each year in that period to the Board or to a holder of a licence or an authorisation shall be the amount of the additional costs certified by the Commission as having been incurred by the Board or such holder of a licence or an authorisation in accordance with the order.

(7) An order made under this section may—

(a) impose requirements (whether as to the furnishing of records or other information or the affording of facilities for the examination and testing of meters or otherwise) on the Board and on holders of licences or authorisations,

(b) provide for the times at which payments are to be made (whether payments by way of levy or payments to the Board and holders of licences or authorisations), and

(c) require the amount of any overpayment or underpayment which is made by or to any person to be set off against or added to any subsequent liability or entitlement of that person.

(8) The Minister shall exercise the powers conferred by this section so as to ensure that the sums realised by the levy or otherwise are sufficient (after the payment of the administrative expenses of holders of licences to supply under section 14 or of the Board incurred in the collection of the levy) to pay to the Board and holders of licences or authorisations the payment required to be made by the order.

(9) The Minister may by order, amend or revoke an order made under this section including an order made under this subsection but such amendment or revocation shall be without prejudice to the continued operation of the order in respect of additional costs of the type referred to in subsection (5) which the Commission certifies in respect of each year or part thereof of the unexpired part of the specified period of years to have been reasonably incurred notwithstanding the amendment or revocation.

(10) A draft of the order proposed to be made under this section shall be given by the Minister to the person or persons upon whom the obligation is to be imposed one month before the order is made.

(11) For the purposes of orders made under this section, “public service obligation” means an obligation placed on electricity undertakings which takes account of general social, economic and environmental factors.