Oireachtas Joint and Select Committees

Tuesday, 22 February 2022

Joint Oireachtas Committee on Climate Action

Scrutiny of EU Legislative Proposals

Mr. Noel Regan:

There are proposals in the directive for smart metering. The case for smart metering in gas is slightly weaker than electricity given that gas can be balanced over a longer period. Essentially it is not real-time balanced by the grid operator. The pricing signal is daily, essentially, not half hourly like the electricity. This is recognised in the legislation which provides that each member state must do a mandatory cost-benefit assessment, CBA, as to whether smart meters for electricity and gas make sense. However, Article 19 of the directive provides that the customer be given the right to get one anyway. There is a CBA basis for each member state to do it if it makes sense in their countries. Even if that is negative, the customer has a right to a smart meter. That is enshrined in the legislation. Before I turn to Deputy Bruton's second question, on what the Commission proposed in respect of hydrogen, there is an opportunity here to set up the hydrogen market learning from the lessons of the gas and electricity market. They are saying that from day one, every meter for hydrogen is to be smart. There will be no old-fashioned meters, as it were.

There are several articles pertaining to consumer empowerment. There are basic contractual rights, including to transparent information on prices and tariffs, a wide choice of payment methods and plain and unambiguous language. There is also a right to switch within no more than three weeks. If the Deputy wanted to switch today, the switch would be complete within three weeks. There is also a mandatory comparison tool. Each member state must have an easily usable comparison tool that customers can access free of charge to understand their different products.

Finally, something new in gas that will probably follow electricity is the right to be an "active customer". In electricity that mean a solar panel on one's roof that connects to the grid. There is work to be done in gas but it could be small bio-methane on a farm, for example. There will be a right to get to the grid and access one's renewable gas into the system. There is a suite of measures in this legislation for gas which mirror those in electricity.

The Deputy asked if it is possible to do these. The answer is "Yes". It is something we can discuss with the Commission for Regulation of Utilities, CRU, in terms of examining the provisions and assessing which of them could be brought forward ahead of the legislation. We do not expect the legislation to be dealt with in this Presidency but most likely in the next Presidency, that of Czechia, in the latter part of the year.

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