Pádraic McCormack (Galway West, Fine Gael)
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Question 119: To ask the Minister for Communications, Marine and Natural Resources if he has given recent direction to the regulator with a view to improving access to the grid with particular reference to cost; and if he will make a statement on the matter. [34496/05]

Noel Dempsey (Meath, Fianna Fail)
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I have no function regarding national grid access, which is primarily a matter for ESB National Grid, which is in turn regulated by the Commission for Energy Regulation. The relevant legislation is the Electricity Regulation Act 1999 and I have no power to issue directions of the type referred to.

Gay Mitchell (Dublin South Central, Fine Gael)
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Question 120: To ask the Minister for Communications, Marine and Natural Resources if he has identified the optimum number and location of gas and electricity connectors; and if he will make a statement on the matter. [34491/05]

Paul Connaughton Snr (Galway East, Fine Gael)
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Question 168: To ask the Minister for Communications, Marine and Natural Resources when he expects gas and electricity connectors to be provided in such a way as to protect continuity and security of supply; and if he will make a statement on the matter. [34493/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 120 and 168 together.

At a bilateral meeting in November 2004, Mr. Barry Gardiner, MP, the then Northern Ireland Minister for Enterprise, Trade and Investment, and I endorsed plans put forward by the Commission for Energy Regulation, CER, and the Northern Ireland Authority for Energy Regulation for the construction of a second North-South electricity interconnector. Planning for the construction of the interconnector is continuing. The transmission system operators are currently working on phase I of the project, including technical issues and route selection. This phase is likely to be completed by early 2007. Phase II, the construction phase, will then commence and it is estimated that the interconnector will be operational by 2012. The proposed interconnector will provide increased system security and reliability. It will be a positive step toward further developing competition and will facilitate the development of a fully functioning single electricity market.

With regard to the east-west electricity interconnector, the CER appointed consultants to advise on the financial, technical, commercial and procurement aspects of the development. I understand that phase one of the project, which is now complete, examined procurement options, routing, capacity, ownership and operational parameters and the results will be presented to me shortly. A consultation process was undertaken with all parties who expressed an interest. A decision on how best to take the project forward, whether on a regulated or a hybrid regulated-merchant basis, is the next step and such determination will be informed by the advice of the CER in the matter. I expect the CER to report to me in the coming weeks.

In recent times, Ireland has developed a high standard of security of gas supply, through robust interconnection with the UK, to ensure sufficient importation capacity from external sources. We now have two gas interconnectors, with the second ensuring security of gas supply to 2025 and beyond. Ireland's security of supply status is on par with countries such as France, Italy, Sweden and Denmark, all of whom have duplicated sub-sea pipelines to ensure the availability of alternative routes of natural gas supply. In addition, Northern Ireland has a separate line to Scotland and by the end of 2006 the South-North interconnector will link the two systems.

Under section 19 of the Gas (Interim) (Regulation) Act 2002, the Commission for Energy Regulation, CER, is required to prepare and publish an annual forecast of capacity, flows and customer demand on Ireland's natural gas system over a seven year period. The most recent capacity statement was published on 31 July 2005 and includes a range of possible demand scenarios that may be expected to arise over the coming years. The scenarios incorporate various levels of demand, based on forecasts for the domestic, industrial and commercial, and power generation sectors, while also considering potential timeframes for new indigenous supply.