Denis O'Donovan (Fianna Fail)
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I welcome the Minister for Communications, Energy and Natural Resources, Deputy White, to the House.

Denis O'Donovan (Fianna Fail)
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Amendments Nos. 1 and 2 are related and may be discussed together by agreement. Is that agreed? Agreed.

Alex White (Dublin South, Labour)
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The purpose of amendment No. 1 is to broaden the definition of "improper conduct" by the addition of two new provisions, at subsections (a) and (e), to the definition of improper conduct. Subsection (a) provides that improper conduct will include a failure by the holder of a licence to supply electricity to comply with such standards or performance as may be specified by the commission in the relevant licence. Subsection (e) provides that improper conduct will include a failure by the holder of a licence in respect of the supply of natural gas, the ownership and operation of a transmission system or the ownership and operation of a distribution system to comply with such standards or performance as may be specified by the commission in the relevant licence.

Under the Electricity Regulation Act 1999 and the Gas (Interim) (Regulation) Act 2002, responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, CER. As I have stated, the broad legislative underpinning for the regulation of the gas and electricity sectors is based largely on a suite of statutory functions placed on the regulator, to which the CER, in turn, gives effect through conditions of licences that it grants under the Electricity Regulation Act 1999, as amended, and the Gas (Interim) (Regulation) Act 2002, as amended. Under the existing legislation, the CER may modify a licence. It would be a matter for the CER, as the independent regulator, to specify what standards or performance with regard to the supply of electricity or natural gas to final customers it determines ought to be achieved by the relevant licence holder.

Amendment No. 2 is a minor technical amendment that is required if amendment No. 1 is accepted by the House.

Alex White (Dublin South, Labour)
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This is a technical amendment to section 9(1F) of the Electricity Regulation Act 1999. Section 9 of the Act provides for the functions of the CER, and subsection (1F) provides that it shall be a function of the CER to ensure there is a high standard of protection for all final customers, including in their dealings with energy undertakings. The definition of "final customers" under section 2 of the 1999 Act refers only to those involved with electricity. This gives rise to an unintended inconsistency in that section 9(1F), as stated, appears to apply only to final customers of electricity and does not include final customers of natural gas. Therefore, it is intended to insert a new section 9(1FA) to clarify that the term "final customers" is inclusive of final customers with respect to natural gas.

Alex White (Dublin South, Labour)
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The purpose of this amendment is to insert a new provision into the 1999 Act. This provision will enable the CER - the regulator - to specify in the licence to supply electricity such standards of performance and quality in connection with the supply of electricity to final customers as the CER determines ought to be achieved by the licence holder. The provision places a statutory obligation on the licence holder to achieve and comply with the standards of performance as specified by the commission in the licence. A failure to comply with such standards now comes under the definition of improper conduct.

Denis O'Donovan (Fianna Fail)
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Amendments Nos. 5 to 7, inclusive, are related and may be discussed together by agreement. Is that agreed? Agreed.

Alex White (Dublin South, Labour)
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This is a technical amendment that provides that a reference to the Act of 2002 is a reference to the Gas (Interim) (Regulation) Act 2002. Amendment No. 6 is an amendment to section 13(1) of the Gas (Interim) (Regulation) Act 2002, which refers to the requirement by certain licence holders to publish, subject to the approval of the commission, a code of operations in respect of all technical design, operational and other requirements, including technical safety criteria relating to connection to and operation of the facilities in respect of which the holder has been granted the licence. On the advice of the CER, the obligation under section 13(1) will apply to licence holders under section 16(1)(c) and 16(1)(d) of the 2002 Act, namely, licence holders in respect of the ownership and operation of a transmission system or the ownership and operation of a distribution system.

The purpose of amendment No. 7 is to insert a new provision into the Gas (Interim) (Regulation) Act 2002. Sections 16(1)(a) (c) or (d) of the 2002 Act refer to the holder of a licence in respect of a supply of natural gas, the ownership and operation of a transmission system or the ownership and operation of a distribution system.This provision will enable the CER to specify in licences issued under section 16(1)(a), (c) or (d) of the Act of 2002 such standards of performance and quality in connection with the supply of natural gas to final customers as the CER determines ought to be achieved. The provision places a statutory obligation on the licenceholder to achieve and comply with the standards of performance as specified by the commission in the licence. The failure to comply with such standards now comes under the definition of improper conduct.

If I am correct in terms of the order of amendments, there is a proposal to delete section 27. I think that comes under this.

Denis O'Donovan (Fianna Fail)
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We will deal with that further on.

Denis O'Donovan (Fianna Fail)
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When is it proposed to sit again?

Michael D'Arcy (Fine Gael)
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The House stands adjourned sine die.