Noel Dempsey (Meath, Fianna Fail)

At a meeting in November 2004, Mr. Barry Gardiner MP, the then Northern Ireland Minister for Enterprise, Trade and Investment and I endorsed plans put forward by the Commission for Energy Regulation, CER, and the Northern Ireland Authority for Energy Regulation for the construction of a second north-south electricity interconnector.

Planning for the construction of the interconnector is continuing. The transmission system operators are currently working on phase one of the project, including technical issues and route selection. This phase is likely to be completed by early 2007. Phase two, the construction phase, will then commence and it is estimated that the interconnector will be operational by 2012.

The proposed interconnector will provide increased system security and reliability. It will be a positive step toward further developing competition and will facilitate the development of a fully functioning single electricity market.

The CER has appointed consultants to advise on the financial, technical, commercial and procurement aspects of the development of the east-west electricity interconnector. Phase one of the project, which is nearing completion, is examining procurement options, routing, capacity, ownership and operational parameters.

A consultation process involving all parties that have expressed an interest was undertaken. A decision on how best to take the project forward, whether on a regulated or a hybrid regulated, merchant basis, is the next step and determination will be informed by the advice of the CER.

The two natural gas interconnectors with the UK, IC1 and IC2, have been operational since 1995 and 2003 respectively. As part of the development of the gas network on an all-island basis, the South-North pipeline, due for completion in 2006, will carry gas to Belfast from the IC2 landfall at Gormanstown.

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