Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I thank Deputy Dooley for tabling the amendment and Deputy Lawless for speaking to it. Deputy Lawless is correct that the resourcing of the Commission for Energy Regulation, CER, is an important issue. While I welcome the opportunity to discuss the issue and fully agree with the intent of the proposed amendment, I must reject it for a number of reasons.

I am fully cognisant of the need to ensure the Commission for Energy Regulation is fully resourced to carry out its statutory functions. This important issue was raised in the Green Paper on Energy Policy published in May 2014. As a result of the Green Paper consultation process, the recent White Paper includes a Government commitment to review the legal and institutional framework for the electricity and natural gas markets. The White Paper commitment specifically states that the review includes the Commission for Energy Regulation's mandate and resources. The matter of how best to implement this commitment is a priority issue and part of my Department’s immediate work programme.

The European Union's 2009 third energy package obliges member states to ensure their energy regulators are fully independent and resourced. In line with this obligation, the Commission for Energy Regulation is legally independent in the performance of its functions under legislation and is only accountable to the Oireachtas. The CER must be sufficiently resourced to deliver on its existing and growing mandate and this matter will form part of the scope of the forthcoming review. I would greatly welcome the opportunity to discuss the review of the commission's mandate and resources with this committee at an early date.

Under the regulatory legislation, the Commission for Energy Regulation is accountable for the performance of its functions to this committee. In this light, I hope the review will be of interest to members and I have no doubt there is potential for Deputies and Senators to make a valuable contribution to the review. Any issues relating to resources in respect of new powers and functions will be fully reviewed in parallel with both the forthcoming review and the development of the new administrative sanctions regime.

It would not be appropriate or practical to consider the Commission for Energy Regulation's resources in respect of one particular statutory function and thereby exclude from examination the wide range of other regulatory functions the commission undertakes. It is vital that a holistic approach is taken in respect of any review of the CER's resources in light of all its energy regulation functions. In line with the principles of independence, the allocation of staff within the Commission for Energy Regulation is a matter for the commission. As the CER has assumed new functions in recent years, it has shown it can flexibly reallocate and adapt resources as its roles and objectives change.

It is therefore proposed to reject the Deputy’s amendment on the basis that the adequacy or otherwise of the Commission for Energy Regulation’s resources will be reviewed holistically as part of the forthcoming review to which the Government committed in the energy White Paper. As I stated, this review can be discussed with the committee.

I do not disagree with the amendment in principle but it is the wrong vehicle for achieving the objective the Deputy seeks. I will be pleased to engage with the committee as part of the overall review of the Commission for Energy Regulation and its functions. Such engagement would be appropriate given that the committee is the organ of the State to which the commission is accountable.

It would be useful to engage with the committee on the Commission for Energy Regulation's functions, as well as its resources. It is important that the commission has sufficient flexibility to reallocate resources in response to changes introduced under EU directives or additional responsibilities that may be conferred on it from time to time.