Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

This Bill addresses legislative amendments to allow for the sale of Bord Gáis Energy, a division of Bord Gáis Éireann. It also provides for the restructuring of Bord Gáis Éireann through the establishment of a gas network subsidiary company. The Bill also facilitates the sale of the Bord Gáis Energy business and changes the ministerial ownership and control provision for Bord Gáis Éireann.

Bord Gáis Éireann is a major energy provider, supplying gas and electricity to homes and businesses throughout the island of Ireland. Established in 1976, it is majority-owned by the Government through the Minister for Finance and the Minister for Communications, Energy and Natural Resources. Bord Gáis Energy is a division of the Bord Gáis group, operating in both the Republic of Ireland under the Bord Gáis Energy brand and in Northern Ireland under the Firmus Energy brand. It is a dual-fuel all-island business serving more than 825,000 gas and electricity customers. The sale of Bord Gáis Energy is part of the Government's State assets disposal programme, and is being pursued as a commitment under the EU and IMF programme.

The Government announced its intention to sell Bord Gáis Energy in February 2012. Reports anticipate the sale could generate proceeds of between €1 billion and €1.5 billion, although some of the most recent estimates have been towards the lower end of that scale. Half of the sale proceeds will be available to fund employment-enhancing projects of a commercial nature and the other half is destined to eventually pay down debt.

The Gas Regulation Bill sees Bord Gáis Éireann split into two companies, one of which will take control of the physical gas network, while the other will take control of the energy business, with the possibility of its being sold by the end of 2013. The Bill provides for the reconstruction of Bord Gáis Éireann through the establishment of a gas network subsidiary which will remain in State ownership, and it deals with the technicalities of establishing those two companies. The Minister for Communications, Energy and Natural Resources will be the majority shareholder of the gas network company.

The Irish gas market was opened fully to competition in July 2007 following implementation of the necessary legislation, meaning that alternative supplies compete in all market sectors, including the residential sector. The Commission for Energy Regulation is responsible for the regulation of the Irish gas network and the supply or retail market. It regulates revenues recovered and network tariffs charged by the network operators and owners. Many large customers, such as power stations, avail of the options of connecting to the network and purchasing gas on the international market directly. The majority of small customers, including residential customers, are still supplied by Bord Gáis.

Bord Gáis Networks develops, operates and maintains the natural gas transmission and distribution network in Ireland and provides gas transportation services to suppliers and shippers, including Bord Gáis Energy. The natural gas network consists of 13,150 km of gas pipeline, including two sub-sea interconnectors with Scotland, from where Ireland gets over 93% of its gas supplies. This work is carried out on behalf of Gaslink, the independent gas system operator for Ireland.

Bord Gáis Networks is also responsible for new gas connections and for work on service pipes and meters at customer premises. It manages a full 24-hour emergency response service and handles over 20,000 call-outs per year. Bord Gáis Éireann is also a major employer in Ireland, with over 1,000 direct employees.

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