The electricity regulator Mr Tom Reeves has warned that proposed Government limits on environmental emissions, if implemented, could lead to Californian-style blackouts and higher electricity prices.
In a submission to the Department of the Environment, Mr Reeves issues a stark warning that proposed limits on nitrogen, sulphur dioxide and other pollutants could cause major difficulties for the power generation sector.
A proposed 61 per cent cut in nitrogen levels for power stations is too "onerous" and a fixed limit will not work, says a document issued by his office, the Commission for Energy Regulation (CER). Instead the Government should seek to "re-balance" the different emissions limits, it says.
The document is a response to a discussion paper circulated by the Minister for the Environment, Mr Cullen, in July. Mr Cullen has said he is interested in hearing the views of all interested parties. The Government is attempting to put in place a strategy to reduce emissions of four major air pollutants by 2010.
The pollutants are sulphur dioxide, nitrogen oxide, volatile organic compounds and ammonia. They have to be reduced because of UN agreements that the Republic has signed up to and because of an EU directive on pollution.
Mr Reeves, in his submission, asks who shall pay the penalties imposed for breaking the limits. He warns that power stations could, in order to avoid penalties, simply stop generating power for certain periods.
"The commission notes that this particular issue resulted in severe security of supply concerns in the California area when a plant, which was required to run to 'keep the lights on', refused because they would face emission penalties."
He adds: "In light of the generation adequacy concerns Ireland faces, this is a major concern with the proposals, which requires discussion and addressing."
On prices, Mr Reeves says the ideas proposed by the Department of the Environment could push tariffs up.
He says power stations will have to introduce "costly abatement measures" and this would affect prices. He says the power generation sector is already grappling with measures introduced under the Kyoto protocol.
He says an analysis needs to be done on how the new reductions, Kyoto and a possible carbon tax will affect electricity prices.
Mr Reeves says the ESB has advised his office that the proposed Government targets are "not achievable, even with the utilisation of costly and technically extreme abatement measures".
The documents says the CER is concerned that power stations may end up carrying a "disproportionate level of the emission reduction target" and this could undermine competitiveness and the ability of stations to provide sufficient electricity.
"It is critical that the Department re-evaluate the sectoral targets to reflect the present and future relative level of emissions between sectors," says the document.
