Electricity prices ‘depend on expansion’
And the only way to achieve this best possible scenario, he said, was to open up and expand the market. This could be achieved by developing an all-Ireland market and building an interconnector to Britain via Wales.
The all-Ireland market would have two main players, the ESB and Viridian, with the Northern Ireland company providing the competition, particularly in the industrial and commercial sectors.
Contrary to reports, Mr McManus said there was no way the ESB would oppose the building of an interconnector. The Irish market has a customer base of about 1.7 million. In Europe the economic market size is considered to be at least five million, he said.
Despite the harbingers of doom the demand for electricity in Ireland continues to increase, Mr McManus told the Cork Chamber of Commerce business breakfast in association with the Irish Examiner. During the years of the Celtic Tiger demand increased annually by 5.5% or 40% over a 10 year period, way above the EU average. And the rate of increase is still running at 4%, again way ahead of other European countries. The ESB connected 63,000 customers last year and will connect 70,000 this year. “Something must be right with the economy,” he added.
The State-owned utility is spending 3.5 million a day upgrading its network or 3.5 billion over the next five years. But this comes after a long period of no investment.
On the electricity generation side it is also investing heavily However, he did issue one note of warning regarding the supply of electricity in Cork saying that the area would have had problems if Irish Steel had not closed. It was imperative, he said that the link between the power plant at Aghada and Rafeen went ahead. The controversial link has been help up for several years over protests, but Mr McManus is optimistic these can be overcome.
