Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

The amendments propose to amend the definition of the 2014 Act, which clarifies that the Act of 2014 means the Companies Act 2014, to include various climate policy terminology already provided for in the Climate Action and Low Carbon Development Act of 2015; to add additional obligations into the functions of GNI to factor in national policies on decarbonisation such as the climate action plan and emissions reductions into its operations; and to change the terms and conditions under which applications to the regulator for new connections or expansion of the gas network must be assessed. I thank the Deputy for these suggestions. I appreciate the intention of the amendments but I propose to reject them as the Gas (Amendment) Bill 2023 is a technical Bill which solely provides for the integration of Ervia into GNI and does not provide for any new additional functions or obligations for GNI. It is not the appropriate mechanism to review the functions of GNI in relation to national climate policy.

The context which the Bill provides for was laid out in a memorandum to Government by the Minister for housing. That memo outlined the plan for the development and drafting of a general scheme whose aim was to separate Irish Water from Ervia in 2020. The Government also approved the development and drafting of another general scheme of a separate Bill to facilitate the integration of Ervia into GNI, which is what we are doing today. The Government's approval only provides for the integration of the current activities of Ervia into GNI and does not provide for any new function or activity for the board to engage in.

As Deputies are aware, GNI is a semi-State, public body. Its shares are 100% controlled by Ministers. It is, therefore, subject to the same criteria as other State bodies regarding its climate obligations. GNI in particular is listed as a relevant body under the Climate Action and Low Carbon Development Act 2015, as amended by the Climate Action and Low Carbon Development (Amendment) Act 2021. The term "relevant body" includes a public body which is defined by reference to the Freedom of Information Act 2014, to which GNI is subject and to which it will continue to be subject with the passage of this Bill. Therefore, because GNI is a relevant body, it performs its functions in a manner which is consistent with the most recently approved climate action plan, the national long-term climate action plan, the national adaptation framework and sectoral adaptation plans, and with the furtherance of the national climate objective, which is to reach net zero by 2050, and the objective of mitigating greenhouse gas emissions and adapting to the effects of climate change in the State. Gas Networks Ireland is already covered by the Climate Action and Low Carbon Development Act. It is covered for all of those functions and is already obliged to comply with everything from the climate action plan to its own emissions reductions targets and its sectoral emissions ceilings.

The implementation of the European directive on common rules for the internal markets in renewable and natural gases and in hydrogen is a more appropriate legislative vehicle for consideration of the decarbonisation of the gas grid in the context of GNI's role and functions, as provided for in the Gas Act 1976. In particular, the final version of the European gas directive, which was agreed since we last met on Committee Stage, provides for member states to implement measures to phase out natural gas to reach the climate neutrality objectives set out by the EU or for other technical reasons. This directive provides for the development of a clear regulatory framework allowing for the refusal of access and the possible disconnection of network users to attain these policy objectives. Network users can be refused access or can be disconnected if this concerns infrastructure that will be decommissioned in line with the network development plan at transmission level or if decommissioning is envisaged in line with the provisions of the directive. It also notes that at the same time adequate measures should be undertaken to protect network users in such circumstances. It is important the refusal of access and disconnection decisions are subject to objective, transparent and non-discriminatory criteria developed by regulatory authorities.

GNI is required under the current 2009 gas directive, as amended, to publish a ten-year network development plan every two years and it must be submitted to the CRU for approval.

This network development plan is available to the public and is published on the GNI website. The new gas directive updates the requirements involved to include biomethane and hydrogen developments and ensures these are developed in conjunction with the decarbonisation of the gas grid. Furthermore, it is now a requirement for member states to ensure distribution system operators, such as GNI, develop network decommissioning plans when a reduction in gas demand requiring the decommissioning of natural gas distribution networks, or parts of such networks, is expected. Such plans will be developed in close co-operation with hydrogen distribution network operators, distribution system operators for electricity, and district heating and cooling operators, ensuring effective energy system integration and reflecting the reduced use of natural gas for the heating and cooling of buildings where more energy- and cost-efficient alternatives are available. Negotiations on the directive have now concluded. As of 28 November last year, the European Parliament and Council have reached agreement on a final text. The Department has begun scoping out the work required to transpose this directive into Irish legislation.

Another significant development the Deputy is aware of is the publication of the Energy Security in Ireland to 2030 report, which outlines a new strategy to ensure energy security in Ireland for this decade, while ensuring a sustainable transition to a carbon-neutral energy system by 2050. Within this package, there is specific action approved by the Government to review gas connection policy and introduce gas demand flexibility measures. Under the climate action plan 2023, CRU has been assigned as a lead organisation to complete and publish an electricity demand-side strategy and implementation plan. As part of this, CRU is undertaking a review of the processing of new large energy demand connections to the electricity and gas system. The aim of this review is to provide a pathway for new large energy user connections to the electricity and gas systems, which minimises the impact on national carbon emissions while taking into the account the capacity of the system in relation to the supply of energy and grid infrastructure.

A number of things are happening. One is that the CRU consultation on new connections to the gas grid is taking place at present. Second, we have to implement and are legally required to transpose this new gas directive which specifically addresses the question of who should be refused access to the gas grid and when we should disconnect people from it. Deputy Murphy said Gas Networks Ireland was premised on increasing gas use, but outlined in its network development plan, which is a legal document that has to be published every two years but that looks ten years forward, is a plan for gas usage to peak in 2025-26 and to reduce continually after that. GNI is in fact planning for a reduction in gas use overall.

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