Peter Kelly (Longford-Roscommon, Fianna Fail)

This move had a dramatic impact on the number of customers eligible to switch supplier. While previous rounds of market opening impacted on a small group of approximately 250 high volume customers, this move meant that more than 17,000 industrial and commercial customers were eligible to switch supplier or source their own natural gas. Overall, market opening by volume increased by 86%. This was another important step towards the full opening of the natural gas market.

The benefits of liberalisation, which were previously enjoyed by large customers, will now be extended to all industrial and commercial customers. This will assist our economic competitiveness. Subsequently, the then Minister introduced a customer charter for the market, which provided for increased levels of consumer protection for natural gas customers and household consumers. The statutory instrument also contains provisions relating to natural gas licences, accounting procedures, the gas capacity statement and the functions of the Commission for Energy Regulation. These regulations continue the process of meeting Ireland's obligations under Directive 2003/55/EC.

Another statutory instrument signed into law last December imposed a legal obligation on Bord Gáis Éireann to unbundle its transmission and distribution system operators. Bord Gáis is taking measures to comply with this through the establishment of an independent system operator subsidiary. Thus, the conditions for competition are being created through progressive liberalisation of the electricity and gas markets. Liberalisation of the electricity market has proceeded on a phased basis since February 2000 under the regulatory oversight of the CER. In accordance with the Electricity Regulation Act 1999 (Eligible Customer) (Consumption of Electricity) Order 2003 on 19 February 2005, the market opened fully to competition. From that date, all customers have been eligible to source their electricity from any licensed supplier and the entire market became contestable.

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