Questions Raised on How Costs to Electricity Distribution Network will be Recovered

Nicola Grant, Workers Party, has commented on Economy Minister Murphy’s statement at the launch of his consultation on changes to how costs associated with new connections to the electricity distribution network are recovered. Under the current system, adding a new low carbon connection such as a heat pump or EV charger requires a charge to the householder or business requiring the upgrade. Under Mr Murphy’s proposed changes, the cost to reinforce new connections to the electricity grid will be spread across all customers and paid for over a longer period. Mr Murphy terms this charge, the ‘socialisation of connection costs’.

Nicola said, “the Workers Party will make a detailed response to the consultation, but some initial questions spring to mind. In particular, who should pay the costs?

“Why spread the costs across all customers? Why call that an equitable and equal approach to meeting those costs? Why would does he consider this a ‘socialisation’ of connection when in fact it is a genuflection to profit-takers in the market?

“A real socialisation of costs would and should entail the energy companies dipping into their massive profits, which go to their shareholders and senior executives, and the real socialist alternative would be bringing our utilities back into public ownership. That way the state could use all of the surplus profits to lower the cost of energy and help create renewable green energy sources and provide real, sustainable well-paid employment.”

Nicola said, “there seems to be an inbuilt assumption by the Minister that everyone in Northern Ireland is on an equal footing when it comes to affordable costs. That is certainly not the case: working class people are struggling to make ends meet, fuel poverty, food poverty and other forms of poverty are already burdening our citizens”.

“Pensioners and those on benefits and the working poor are not cooking hot meals anymore because of the high energy costs. Does the Minister really think they can pay more?" Nicola stated “while the Workers Party welcomes all new greener technology and cleaner energy sources and the building of our infrastructure to support more homes, we believe that big energy companies are willing to rake in the profits, but they are only willing to invest those profits in new renewable energies and technology if they are protected against ‘risk’ by massive state subsidies and tax breaks. The Emissions Trading Schemes operating in the EU and UK have proven that the market is unable to lessen CO2 emissions at the necessary speed and scale to prevent deepening climate catastrophe.”

Nicola concluded, "we look forward to seeing the full details of this proposal and its outcomes for our citizens, but I certainly believe that this will be extremely worrying for the vast majority of people. The Workers Party would prefer to have the real consultation regarding the benefits of State ownership of all our public utilities."