Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I thank Deputy Brassil for tabling the amendment, which I do not propose to accept. The amendment was comprehensively discussed on Committee Stage. On the conclusion of the discussions, Deputy Lawless, on behalf of Fianna Fáil, stated that he was satisfied with the position as outlined and, in particular, he welcomed the proposal that the committee would review the operations of the commission. He then withdrew the amendment.

I can only repeat what I outlined on Committee Stage which seemed to be acceptable to all present. I am fully cognisant of the need to ensure the Commission for Energy Regulation is fully resourced to carry out its statutory functions. This important issue was raised in the Green Paper on Energy Policy published in May 2014. As a result of the Green Paper consultation process, the recent White Paper includes a Government commitment to review the legal and institutional framework for the electricity and natural gas markets. The White Paper commitment specifically states that the review includes the Commission for Energy Regulation's mandate and resources. The matter of how best to implement this commitment is a priority issue and part of my Department’s immediate work programme.

The European Union's 2009 third energy package obliges member states to ensure their energy regulators are fully independent and resourced. In line with this obligation, the Commission for Energy Regulation is legally independent in the performance of its functions under legislation and is only accountable to the Oireachtas. The CER must be sufficiently resourced to deliver on its existing and growing mandate and this matter will form part of the scope of the forthcoming review.

During Committee Stage discussions, I pointed out that under the regulatory legislation, the Commission for Energy Regulation is accountable for the performance of its functions to the joint Oireachtas committee. Furthermore, I stated that I would welcome the opportunity to discuss the forthcoming review of CER's mandate, including the resources, with the committee at an early date. Any issues relating to resources in respect of new powers and functions will be addressed in parallel with the forthcoming review and the development of the new administrative sanctions regime itself. The administrative sanctions regime will take time to implement. For example, it requires preparatory work by CER to develop the performance standards.

As I said on Committee Stage, it would not be appropriate or practical to consider the Commission for Energy Regulation's resources in respect of one particular statutory function and thereby exclude from examination the wide range of other regulatory functions the commission undertakes. It is vital that a holistic approach is taken in respect of any review of CER's resources in light of all its energy regulation functions. In line with the principles of independence, the allocation of staff within the Commission for Energy Regulation is a matter for the commission. As the commission has assumed new functions in recent years, it has shown it can flexibly reallocate and adapt resources as its roles and objectives change.

It is, therefore, proposed to accept the principle of what Deputy Brassil proposed in the amendment but to reject the amendment on the basis that the adequacy or otherwise of the Commission for Energy Regulation’s resources will be reviewed holistically as part of the forthcoming review to which the Government committed in the energy White Paper. Committee members will have a direct role in regard to that.

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