Ireland must implement the EC Directive 96/62 concerning common rules for the internal market in electricity by 19th February 2000.
The Department of Public Enterprise has very helpfully issued a 205-page consultative document on the proposed implementation in Ireland. A submission on the document was made to the department by A & L Goodbody.
The key features of the proposed new arrangements include the establishment of a new independent regulatory authority for the electricity sector; the separation of the ESB's transmission system from the generation and sales sides of its business; the licensing of a distribution system within the ESB; the establishment of a licensed Public Electricity Supplier within the ESB; and various new licensing arrangements for stations, suppliers and others.
One of our concerns on the proposed statutory framework is that a series of different regimes for the supervision of different industries in Ireland is developing. Regulators for each industry will over time inevitably develop separate policies which may not be co-ordinated.
The changes in industry indicate that the boundaries between the sectors are disappearing with, for example, electricity companies entering joint ventures with telephone companies - while businesses such as supermarkets - are selling gas. It may therefore be quite inappropriate for gas, electricity and telecommunications to have separate regulators.
We are also conscious that competition will not be achieved by the introduction of licencing and the division of operations alone. The new regime must have adequate policies to ensure competition in the market place and there is merit in including a 'fair trading' clause in each of the licences granted in the deregulated industries.
This article was intended to provide general guidelines. Specialist advice should be sought about specific facts.
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