Oireachtas Joint and Select Committees

Wednesday, 18 February 2015

Joint Oireachtas Committee on Transport and Communications

Regulation of Gas Industry: Discussion

9:30 am

Ms Aoife MacEvilly:

I will take the last question first. The Corrib gas is certainly very welcome from a security-of-supply perspective. It is hugely beneficial to our economy to have an additional indigenous source of supply. However, that source of supply will compete against that very liquid competitive wholesale price in the UK, which Ms Brien mentioned. We would not expect to see it having a material price impact. The benefit is really around the security of supply.

We absolutely agree with the Deputy that the swings and roundabouts of hedging should ensure that customers get the benefits when the price is falling, even if it is over time, and are protected if prices start to rise rapidly or if they are volatile. Hedging should protect them from that over a period. That is something we will monitor as part of our market monitoring regime to ensure customers are protected, to the extent that hedging should protect customers. Ms Brien can take some of the more detailed questions.

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