By John Fitzgerald
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Such facilities would not be justified on security grounds alone when 39 40 41 42 43 As Ireland moved to be an exporter of gas, exporters would get the GB price of gas less the cost of transporting it across the Irish Sea. This would compare with the situation where Ireland imports gas and the price is then the GB price plus the cost of transporting it to Ireland. An interim measure would be to reach an arrangement whereby Corrib would be depleted at a slower rate than planned. Mistakes by the company involved also contributed to delays.
For example, the contract for the M50 Westlink bridge looked acceptable when it was written in the late 1980s but it proved very inflexible and costly to change to deal with unexpectedly rapid growth in the 1990s. A possible downside from public ownership is that such companies may permit the employees to capture some of the monopoly rents inherent in the networks through excessive staffing or remuneration. Diffney et al. (2009b) suggest that this may well be the case in the ESB. The current crisis has resulted in a dramatic increase in the cost of capital for the Irish state.
Touhy, 2011a. ”, ESRI, forthcoming. Devitt, C. and L. Malaguzzi Valeri, 2011b. “The effect of REFIT on Irish electricity prices”, ESRI Working Paper 374, Dublin: Economic and Social Research Institute. , S. Lyons and L. Malaguzzi Valeri, 2009a. “Advertising to boost energy efficiency: the Power of One campaign and natural gas consumption” ESRI Working Paper 280, Dublin: Economic and Social Research Institute. , J. Fitz Gerald, S. Lyons, and L. Malaguzzi Valeri, 2009b. “Investment in Electricity Infrastructure in a Small Isolated Market: The Case of Ireland”, Oxford Review of Economic Policy, 25, No.
A Review of Irish Energy Policy issue 21 by John Fitzgerald