Brian Stanley (Laois, Sinn Fein)
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We all know that we are just short of 70 days away from Brexit. It is to be hoped that it will not happen with a big crash-out. I believe that is the hope of everybody in this House and of the people at large. My question relates to energy supplies in the event of Brexit happening. I first raised this issue as far back as three years ago and I have raised it a number of times since including during an exchange with the Minister's predecessor, Deputy Naughten, on 9 May 2017 to which I will refer in a minute. The issues relate to the supply of gas, electricity and oil. For better or worse, at the present time we depend on these supplies for our energy. Large amounts of them come through Britain. I will deal with them one by one.

Some 55% of our gas supply comes through the island of Britain - England, Scotland and Wales. We have an all-Ireland single electricity market, which is very important. Important work has been done on that. Some 40% of the State's oil reserves are also held outside the State - 20% in England, 11% in Scotland, and 9% in the Six Counties which are still occupied by England, Scotland and Wales. This 9% is held close to Derry. Some 55% of our natural gas comes from Britain. If that is interrupted or stopped, perhaps in an emergency scenario, we would be in a serious situation in respect of the supply of domestic home heating gas but also in respect of power generating plants. If it was cut off or if there were interruptions in the event of a no-deal Brexit is there a possibility of World Trade Organization tariffs applying to this gas? Will we have higher gas bills in nine weeks' time? This would also affect electricity bills because the gas is used to generate electricity. We must bear in mind that we already have the fourth highest electricity prices in the European Union. What provisions are being made for those two scenarios?

With regard to electricity, we have a 32-county electricity market which has been functioning very well since 2007, although there is other infrastructural work to be done in that area. Can we guarantee that, in the event of a no-deal Brexit, there will be no tariffs applied to cross-Border electricity? The new all-Ireland integrated single electricity market, ISEM, design which started in October was meant to save householders and businesses up to €200 million. What will happen in that regard? We also have an electricity interconnector with Britain which goes directly across the Irish Sea. Will tariffs be applied to electricity coming through that interconnector in nine weeks' time?

With regard to oil reserves, earlier I referred to the fact that 40% of the State's oil reserves are held between the North of Ireland and Britain. Under EU rules, this will not be counted towards our EU obligations after Brexit. What discussions has the Minister and his Government had regarding what will happen to those oil reserves in nine weeks' time? Under EU rules we are required to have a nine weeks' supply as a minimum. As a member of the European Union we must continue to have that reserve, but not only for that reason.

We need those nine weeks of supply to be sure that we will have enough energy to keep the wheels turning on this island, for industry and transport and all of the other areas where it is used.

In reply to a question in May 2017 the Minister said that the State was refurbishing facilities at Poolbeg in Dublin and Great Island in County Wexford. Are they finished and ready? Can the State now cater for the level of oil reserves that are required to get us over the minimum nine-week period?

Richard Bruton (Dublin Bay North, Fine Gael)
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I thank Deputy Stanley for raising this important issue. As the Deputy has outlined, there has been great co-operation between Ireland, Northern Ireland and the UK in the energy market. It is certainly our desire that this will continue.

On the issue of the security of the supply of gas, Ireland has two main sources. One is from the Corrib facility, which is a very important supplier, as Deputy Stanley has indicated. The Corrib field delivers nearly half of our gas needs. The balance of our supply comes from two wholly Irish-owned interconnector pipelines between Ireland and Scotland. These pipelines are governed by intergovernmental agreements with the UK from 1993 and 2004. Gas Networks Ireland, GNI, and the Commission for Regulation of Utilities, CRU, have indicated that gas trade across the two interconnectors will not fundamentally change in the short to medium term as a result of a no-deal Brexit. Gas trading contingencies are being further examined as part of ongoing engagement with the Directorate General for Energy and the European Commission, as similar issues arise for member states such as Belgium, the Netherlands and Denmark. They are secure but an interruption to gas supply from an unpredictable event is always possible. Brexit, however, of itself does not make that more likely. Ireland has a considerable advantage in having the Corrib provision.

The practicalities of gas trading on the interconnectors are governed by a series of mutually reinforcing agreements, contracts and trading rules, variously between the Irish and UK Governments and between the transmission system operators in Ireland, Northern Ireland and Great Britain, with the latter overseen by their respective regulators. With regard to the World Trade Organization, WTO, I have been informed by the Department that electricity would continue to trade and a tariff would not apply. There may be a very small tariff on gas in the order of 1%. Even in a WTO context the impact on this sector would be relatively small.

The position on oil products, is that Ireland is dependent on imports that are predominantly supplied by UK refineries. There are no indications, however, that we should be concerned about the continued availability of these products, post UK withdrawal. In the event of any unexpected supply disruption occurring in the UK, the industry has indicated that alternative supplies can be sourced elsewhere, such as Rotterdam in the Netherlands. On the issue of emergency oil reserves, Ireland is required under EU legislation and International Energy Agency, lEA, rules to hold oil stocks equivalent to 90 days of net imports for use in an emergency. Currently 57% are held in Ireland, 22% within the other EU member states - all of which are readily accessible - and 21% of our emergency stocks are held in the UK, including Northern Ireland. Post UK withdrawal, these stocks will still be accessible.

I will get information for Deputy Stanley on the works that have been done but I know that NORA has stepped up its own capacity and has been onshoring the reserves that are being held. That has made-----

Brian Stanley (Laois, Sinn Fein)
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Will the Minister clarify what NORA stands for?

Richard Bruton (Dublin Bay North, Fine Gael)
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The National Oil Reserves Agency.

As for electricity, in October 2018, after more than six years of work by Departments, regulators, the transmission systems operators, market participants and stakeholders, the new wholesale electricity market has been established. Legislation underpinning this was amended in Ireland and Northern Ireland. The legislation is contained in sections 7 and 8 of the Energy Act 2016. The position of Northern Ireland, including with regard to the single electricity market, remains a priority for the EU, Ireland and the UK. We are working to maintain the beneficial structures of the all-island single electricity market whatever the outcome of Brexit.

As one of the elements in the whole-of-Government initiative, I will be introducing some powers to ensure that the CRU has sufficient powers to ensure Ireland's compliance with the EU energy market requirements in the event of a UK withdrawal.

Brian Stanley (Laois, Sinn Fein)
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I thank the Minister for his reply. Some information has been provided there but it comes across that there is still some work to be done.

On the gas situation, the Minister indicated there may be a small tariff. It is a concern that there may be a tariff on gas coming into Ireland from England, Scotland or Wales. This will be a concern to industry, to householders and to citizens up and down the country.

I have raised this matter on a number of occasions over the last years, including at a conference organised by the Government two years ago in Roscommon. The conference was organised by the current Minister's predecessor and it was very useful. I ask that further information be shared on the issue as it becomes available. We are aware that any type of tariff or charge can start off as a penny but can wind up as €1 million because it is the thin end of the wedge. A charge can increase over time. Does the Minister have any information as to whether that tariff could be increased and if Britain holds all the cards? Is it within Britain's gift - the mother of parliaments - to decide whether there is a tariff on gas coming into Ireland? Some clarity on this issue would be useful.

With regard to the oil reserves, and in answer to previous questions on the matter to the Minister's Department, he said that 20% is in England, 11% is in Scotland and 9% is held in the North of Ireland. Could we have some clarity on that? Obviously it would be better if it was on the island of Ireland from a logistical perspective. Perhaps the Minister could illuminate where we are at in developing the capacity for storage in this State. Will he also explain what is happening in Wexford and in the other facilities that were supposed to be developed and which are leased from the ESB?

Richard Bruton (Dublin Bay North, Fine Gael)
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I will get additional information for the Deputy. I am aware that work has been ongoing in increasing capacity in order to have the oil storage onshore. We have good contracts to ensure the stores are accessible wherever they are held.

On the potential crash-out and the WTO rules becoming the rules, this is a market where there are very low tariffs and these are within the WTO rules. These tariffs would not be decided at random. They would be the fallback and, as I have said, they are 0% in electricity and very small tariffs in gas. It is not like the agricultural sector, which would face very big obstacles to trade under WTO rules.

The main area in which we need to take action, which is included in the omnibus legislation that the Tánaiste will bring through, is in ensuring that Ireland continues to comply with all European Union regulations around the electricity market. This is where we need to take certain reserve capabilities for the CRU to ensure we can be compliant. That will be included in the legislation that is due to be published in the near future.