Oireachtas Joint and Select Committees

Tuesday, 15 February 2022

Joint Oireachtas Committee on Climate Action

Commission for Regulation of Utilities Strategic Plan: Discussion

Ms Aoife MacEvilly:

Gas is an internationally traded commodity. When Corrib gas came online, it was pricing against the delivered cost of gas via Moffat. It was not pricing at cost. It was pricing at a commodity price, which is linked to the price deliverable from the UK national balancing point to Ireland. This is why Corrib gas may offer some marginal reduction to support sales in Ireland but it is not necessarily offering significantly cheaper gas. We always promoted Corrib gas as supporting security of supply for Ireland rather than necessarily delivering major changes in energy prices. It is priced in the same way all commodity suppliers price their product.

With regard to profitability, a report is done on the single electricity market. The market monitoring unit looks at generator profitability over time and there is a report we take from time to time looking at supply margins.

We are not looking at it at any one point in time or for any one six-month period. Nothing we saw in any of those reports - again, some of these might not be up to the very current moment - indicated that profitability or an increase in profitability was impacting on the current level of pricing, which, again, is largely driven by commodity prices.

Another question concerned the energy review, which I take to mean the security of supply review being undertaken by the Department. It is very much driven by the Department and we are available as advisers to the Minister to provide input to that at any time. I think that answers that question. I will ask Mr. Gannon to answer the question on data centres.