Written Evidence submitted by the Electricity Association of Ireland (EEE0009)

The Electricity Association of Ireland (EAI) is the representative body for the electricity industry and gas retail sector operating within the Single Electricity Market (SEM) on the Island of Ireland.

Our membership comprises utilities that represent 90% of generation and retail business activities and 100% of distribution within the market. Our members range in size from single plant operators and independent suppliers to international power utilities.

We believe that electricity has a fundamental role in providing energy services in a decarbonised, sustainable future, in particular through the progressive electrification of transport and heating. We believe that this can be achieved, in the overall interest of society, through competitive markets that foster investment and innovation.

We promote this vision through constructive engagement with key policy, regulatory, technology and academic stakeholders both at domestic and EU levels.

We represent the Irish electricity industry in EURELECTRIC, the representative body for the European electricity industry, and help shape the broader European response to developing policy and legislative initiatives.

EAI submitted a detailed response to the Committee’s initial inquiry in 2016 which is attached.   Bellow find our comments in relation to the follow-up consultation on the Electricity Sector in Northern Ireland questions posed by the Northern Ireland affairs Committee;

• Our members, who represent over 90% of electricity generation and supply on this island alongside both distribution system operators, are firmly committed to continuation of the Single Electricity Market and its ongoing integration with neighbouring European markets.

• The SEM has brought many advantages to both parts of the island including greater market liquidity, increased wholesale market efficiency and retail competition, and improved security of supply.

• There is an important second set of benefits which derive from open and efficient electricity trading arrangements between the island of Ireland and neighbouring European markets (e.g. trade benefits, supply security and assistance towards the decarbonisation agenda). 

• We strongly support the deeper integration of SEM with neighbouring European markets via the I-SEM or any potential successor All-Island single electricity market arrangements. 

• We note the importance of ISEM in providing security of supply for consumers in the all island energy market. 

• EAI would like to reiterate our responses to the 2017 House of Lords enquiry on energy and Brexit – Northern Ireland on 13 September 2017.  This response and an additional submission is attached to this document.

• Rapid delivery of the North-South interconnector is the critical requirement not only in the context of security of supplies but also as an enabler of policy delivery and cost savings.

• Structural factors, policy decisions in relation to cost allocation and market design influence the difference in prices across the islands. 

• Significant cost savings are available to energy consumers as a result of competition in the market.

• Northern Ireland should provide an appropriate, proportionate contribution to UK and EU policy ambition as failing to do so could place investment in the economy at risk. 

23 February 2018