Seanad debates

Wednesday, 14 September 2022

Nithe i dtosach suíonna - Commencement Matters

Energy Usage

2:30 pm

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

EU Regulation No. 2022/1369 was adopted by the Council of the European Union on 5 August of this year with the aim of improving the co-ordination framework for national gas demand reduction measures in case of a severe disruption of gas supplies from Russia. As a result of the Russian invasion of Ukraine and the ongoing war, there is a heightened risk of a complete cessation of supplies of natural gas from Russia to Europe. Gas supplies from Russia to Europe have been severely reduced over the past year and continue to be a cause of concern for Europe's energy security. This has resulted in natural gas prices that are approximately ten times the levels seen just two years ago.

The continued supply of natural gas to Ireland has not to date been reduced or interrupted as a result of this reduced supply. The UK, from where we get 75% of our gas, is at a strategic advantage compared with other European countries with a diverse source of gas supplies.

This regulation requires member states to use their best efforts to reduce their gas demand by 15% over the winter. The regulation provides member states with the freedom to choose the most appropriate measures to reduce their gas demand. The measures chosen, however, should be governed by criteria such as being clearly defined, transparent, proportionate, non-discriminatory and verifiable.

The regulation highlights that it is necessary to consider the interests of protected customers and also urges member states to think about measures that affect customers other than protected customers.

The regulation outlines certain measures that member states should consider such as reducing gas consumed in the electricity sector, encouraging fuel-switching in industry, national awareness-raising campaigns and targeted obligations to reduce heating and cooling in order to promote switching to other fuels and to reduce consumption by industry.

The regulation requires that the competent authority of each member state - in our case the Commission for Regulation of Utilities - takes the necessary steps to update its national emergency plan to reflect voluntary demand reduction measures by 31 October of this year.

My Department wrote to the Commission for Regulation of Utilities and Gas Networks Ireland to request that they develop proposals for gas demand reduction measures in response to the requirements set out in the regulation on co-ordinated demand reduction measures for gas. The Department has received these options and is working with the CRU and GNI to prepare proposals for the energy security emergency group to consider. It will be important that the measures will be able to have an impact on demand reduction for this winter and that they do not negatively impact protected customers. We must also be mindful that the majority of Ireland's natural gas is used in the power generation sector.

The Government has already taken actions that will reduce our gas use. Last week the Government approved a suite of energy efficiency measures across the public sector. We have also implemented national awareness-raising campaigns to encourage people to reduce their energy use.

Ireland has a derogation from having to comply with mandatory demand reductions because it is no longer directly connected to another EU member state. However, by having a voluntary demand reduction plan, Ireland is showing solidarity with other member states.

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