Why are we paying for private sector investment?

There is an astonishing story in today's IT. The public is being charged for investment in two private sector energy companies and two ESB plants in Offaly.

the Commission for Energy Regulation intends adding an extra €157 million to the Republic’s electricity bills from October...

The charge is being imposed to pay for Government policy. The cash will be used to pay for market supports for peat-fired power plants, renewable energy and two private sector players, Tynagh Energy and Aughinish Alumina, which provide power to the national network under public service deals agreed in 2005...

Peat will get the largest slice of cake, with three plants, the ESB-owned Lough Ree and West Offaly and Bord na Móna-owned Edenderry, sharing €78 million...

Wind farms will get €43 million, while Tynagh and Aughinish will share €14 million. The balance, over €20 million, will go to administration and other costs.

This seems really dodgy.

1. Why are we paying to invest in the private sector? Do I misunderstand the term "private sector"?

2. Are the two plants in Offaly just pork barrel projects for a sinking Taoiseach?

3. Why are we investing in peat, a non renewable resource?

4. Why is the public being levied to fund a semi state that announced profits of €580 million in 2009?

5. If the government is so concerned about energy in Ireland then why is the state gifting our gas to Shell and buying back at premium prices? The deal was negotiated by Ray Burke, jailed for corruption, and Bertie Ahern, state thief.

6. What about nuclear power?

I can barely afford to pay my electricity as it is. What the hell is wrong with the government?

Recommended reading

From Gavin's Blog,

We are a two-bit emerging market economy, dominated by political and business elites. I think it’s an open and shut case. Every word Johnson intended for Russia accurately applies to Ireland. We are almost the definition of a banana republic.

The only difference is in the last paragraph. “Some within the elite have to lose out before recovery can begin.” No. In Ireland, no oligarch property developer will lose out if the government can help it – thanks to the €90 billion NAMA, what will be the largest property ‘firm’ in the world.

Go read it all. Now.