Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Question 407: To ask the Minister for Communications, Energy and Natural Resources if further consideration will be given to the request to extend a natural gas supply to a centre (details supplied) in County Cavan; and if he will make a statement on the matter. [8472/12]

Pat Rabbitte (Dublin South West, Labour)
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The development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient.

The Commission for Energy Regulation (CER), which is a statutory, independent body, has, since 2002, been charged with all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no direct statutory function in relation to the connection of towns to the gas network.

The CER, in 2006, approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. This policy ensures that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. Otherwise uneconomic projects will increase costs for all energy consumers. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns.

Having regard to CER's new network connections policy, Bord Gáis Networks, and more recently Gaslink, carried out a comprehensive assessment of 39 towns (including Cootehill) not already connected to the national gas network, with detailed economic analysis based on criteria outlined in the policy. The study was published in April 2010 following approval by the CER. The Gaslink report found that 35 towns, including Cootehill, did not qualify for connection on economic grounds.

Nevertheless, Gaslink continues to review the towns which did not qualify for connection under the Study, and other towns, on an ongoing basis. I understand that following a recent review by Gaslink, the CER has recently approved the connection of Cootehill to the national gas network subject to specific contractual commitments for gas usage being entered into. Should Gaslink succeed in securing the requisite contractual commitments, it will enable the connection of the town to the gas network within 12 months.