Approximately 10 per cent of electricity is being lost during distribution, and customers are bearing the financial cost, a new report has stated.
The report, from the Commission on Energy Regulation (CER), said there was significant financial and environmental costs associated with electricity seeping away during distribution.
The CER, led by energy regulator Mr Tom Reeves, has suggested several ways to curb the loss of energy and is anxious that ESB Networks, which handles the local distribution of electricity, reduce the wastage figure.
The CER said electricity was most often lost when heat dissipated from overhead lines and other parts of the distribution system.
The commission said the two others reasons for the loss of electricity were the unlawful taking of power by some customers and errors in metering. In 2002 about 1,500 gigawatts of power was lost from the system.
In relation to the cost of the problem, the CER stated: "Losses result in considerable financial and environmental costs. These arise from the production and transportation of the electricity lost."
It pointed out that smaller electricity plants have to be brought on line to replace the units of electricity lost. It said the cost of losses was currently "spread out over all users".
While recognising the level of wastage had greatly reduced over recent years, the CER said new options should be considered. It outlined three options.
The first would be for ESB Networks to purchase electricity itself to cover the shortfall. The CER said there might be costs involved in allowing ESB Networks to operate like this and its licence might need to be changed.
Another approach might be for electricity companies to bill ESB Networks directly for the losses.
"The exact mechanisms of such a process would need to be further considered," said the CER.
The third option would be for ESB Networks to simply accept the losses directly.
The CER acknowledged there was a process already in place for dealing with the problem. It involves ESB Networks being rewarded or penalised depending on whether it keeps losses below an agreed benchmark level.
Meanwhile ESB National Grid, which operates the high-voltage transmission system, has acknowledged it may take months before wind energy farms can be connected to the national grid.
There is currently a moratorium on new wind farms connecting to the grid. According to minutes of a recent meeting involving ESB National Grid, even after the moratorium is lifted, it could take 70 days at least before connections can be made.
This is because there are 45 applications waiting to be facilitated. ESB National Grid said a "queuing system" would be put in place to deal with problem once the moratorium was lifted.
