Competition in the electricity market

J

JuJu

Guest
I've heard that other electricity and gas providers are about to come into the Irish market, sometime in early 2005.

Why did it take so long to open up the market in Ireland ?

This has to be good news for consumers. The prices of utilities in Ireland are just shocking !
 
JuJu - not correct

JuJu,

Sorry to say this but what your post is completely incorrect.

Ireland used to have the cheapest electricity in Europe until in the late 1990's an EU directive was imposed on all electricity suppliers in the member countries. From an Irish perspective this meant the splitting up of the ESB into seperate entities, e.g. ESB PowerGen, ESB Networks, Eirgrid. The reason this was forced was to open up the Electricity Industry in Ireland and allow competition. As you can imagine this cost a fortune to implement and really has no commercial advantages as ireland is jsut too small to have a competitive elec industry from the consumer point of view. Added to this we are an island so it makes it doubly expensive to link up with the UK / europe.

Also, the advent of Wind Energy as another EU favorite was another factor that greatly affected elec prices. These are very inefficient to run as, when combined with the national grid, they need major reinforcement. For example some days the wind wont blow so the older generators need to step in to plug the hole. Allied with this these older generators are far more efficient and cost effective on their own than when combined with wind energy.

These are the two reasons for the recent price hikes by the ESB......fairly and squarely.

Thus it has taken so long to open the market as the ESB knew it would cost the consumer in the long run money. For once competition has proved detrimental to the consumer!!!

ELEC
 
Wrong ?

So is there not going to be competition for domestic supply from Feb 2005 ?
 
No

There will be competition,but the marketing hasn't started yet.
 
Re: Wrong ?

I think you'll find large parts of your post are incorrect as well Elec or at the very least misleading:


"These (wind turbines) are very inefficient to run as, when combined with the national grid, they need major reinforcement."

This is a myth that just won't go away. It is perpetuated by people who do not understand the operation of an electricity network. Briefly, the fluctuations in wind power output are insignificant compared to the fluctuating nature of demand and supply on the grid. All power systems operate with various levels of reserve to 'step-in' in the event of a generator coming off the system suddenly e.g. in the case of a damaged line or failure of the plant itself. This is made up of fast response reserve such as pumped storage hydro (Turrlough Hill in Wicklow) or extremely inefficient open cycle gas turbines (like stationary jet engines) and also spinning reserve (fossil fuel power stations run on partial load - ready to up there output if required). The point is, in order to provide for a secure system, the Transmission System Operator (Eirgrid) must have an amount of reserve in place, roughly equal to the largest possible fault on the grid i.e the largest single generator set. This will be in place even if no wind turbine ever existed in Ireland. Practically no extra reserve will be required until wind has a 10% penetration on the grid and up to 20% it will be reasonable.

Think about it logically - the chance of suddenly loosing say 300 - 500 MW generator from the grid is a real possibility. Say, in the event of an unfortunate lightning strike, terrorist attack on a vulnerable part of the grid, etc. But the statistical chance of loosing the same amount of well distributed wind generation is almost negligible. With the advent of better long range forcasting and improved technology it is possible to operate a system with significant levels of wind. If we really get our act together and develop our other renewable resources like wave, tidal and biomass then the diversity of our energy supplies will greatly improve. It should be a national embarresment that Ireland currently imports over 80% of its energy requirements.

"For example some days the wind wont blow so the older generators need to step in to plug the hole."

See above......from this quote it seems that your problem should be with the rediculously inefficient steam cycle generators we've inherited which are approx 35% effecient.
Wind turbines have a capacity factor (average electrcity production relative to its nominal capacity) of approx 35-40% but in their case the 'fuel' is free, clean and will not run out!

"Allied with this these older generators are far more efficient and cost effective on their own than when combined with wind energy."

If 'older' steam cycle or gas turbine technolgy are operated at full load they are certainly more efficient than if operated at partial load as spinning reserve. But the point is: it is the entire grid that requires the reserve, wind energy is one small part of that.

"These are the two reasons for the recent price hikes by the ESB......fairly and squarely."

See this recent Commision for Energy Regulation document which concludes that the main reason for ESB price increase is an increase in fuel prices:
www.cer.ie/cerdocs/cer04284.pdf

And to answer your question JuJu, yes, there will be competition for domestic supply from Feb 2005. In fact, any company has been free to sell electricity from renewable sources for a good few years (2000 I think). Airtricity (the wind developer/supplier) focused on the small to medium businesses though. But they're now signing up residential customers. See www.airtricity.com
 
Re: Wrong ?

Also Elec ESB is making nice fat profits these days. A semi-state company should NOT be making such large (or any) profits - its just a tax by another name.

But I suppose it has all those under-employed technicians etc. turning up for work everyday, not to mention a huge army of retirees on nice juicy defined benefit pensions to think about.
 
.

All you BIG USERS of electricity really want to buy it for as little as possible.

When I buy electricity I dont buy very much BUT I buy whole The Service. Power, delivery, maintenance & investment in the the power grid. My view is that the whole service is fantastic value.

The EU would have us all believe that we should pay less for it thanks to competition, then tell us that we are using to much of it and so causing excessive pollution and then tell us that the price should go up by special tax to reduce our usage. This seems pointless to me.

LeccyDog
 
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