I propose to take Questions Nos. 109 and 111 together.
Due to concerns about electricity generating capacity for late 2001 and early 2002, I have given limited and conditional approval for capital expenditure by the ESB on certain specified aspects of its planned new gas-fired generating plant at Ringsend including preparatory work related to the planning process and more recently the procurement of a turbine and associated expenditure.
The Electricity (Supply) (Amendment) Act, 1982, obliges the ESB to secure my approval for any expenditure proposed for capital purposes.
In 1998, the ESB gave my Department advance notice of its intention to build a large new gas fired generating plant at Ringsend.
In the light of the pending opening of the market to competition and the expressed intention of a number of independent players to enter the Irish market, I have at all times exercised my statutory functions in relation to the ESB proposal on the basis of legal advice.
In November 1998, on the basis of legal advice, I gave the ESB approval for the capital expenditure involved in the preparatory work up to completion of the planning permission process.
On 1 December 1999, again on the basis of legal advice, I published a letter which set out the conditions under which I would be prepared to give approval for further capital expenditure by the ESB on the Ringsend project.
That letter made clear that I could only consider giving an approval in relation to expenditure for the turbine after I had received a written undertaking from the ESB that, if I am of the opinion that competition law makes it appropriate, the ESB would sell its interest – including any interest in any consortium having an interest – in any generating station to be built at Ringsend on appropriate terms.
Following receipt of explicit acceptance of that condition by the ESB, the company sought approval to enter into commitments up to £120 million in relation to the procurement of a turbine and associated works.
Following due consideration and after taking further legal advice the ESB was given the necessary letter of capital approval on 23 December 1999.