Written answers

Tuesday, 13 December 2005

11:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 117: To ask the Minister for Finance his views on the observations of the Office of Public Works regarding the sanction of increases in gas prices. [38833/05]

Tom Parlon (Laois-Offaly, Progressive Democrats)
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The Government Supplies Agency, as part of its procurement responsibilities, has placed contracts for several years for the supply of natural gas to a large number of State sites. As with all procurement, the agency seeks to achieve the most economically advantageous terms available for its end users. Prior to 2003 this involved negotiating a price for the supply of natural gas with the single supplier, Bord Gáis Éireann. Following deregulation there was scope for competition in the unit price of gas and the GSA initiated a process of competitive pricing for the unit cost, which is still in place.

With regard to transmission costs the Deputy will be aware that gas has to be transported from either Inch, County Cork, or Moffat in Scotland to each site in the country. This transmission or transportation mechanism is operated by Bord Gáis Éireann.

The Commission for Energy Regulation, on 29 July 2005, invited observations from the public and interested parties on its proposed decision regarding transmission or transportation tariffs for the 2005-06 gas year. The Government Supplies Agency, in response to that invitation, submitted its views to the commission on 25 August 2005. In doing so the agency was seeking to promote dialogue on the provision of gas supplies to its customers. I favour such an initiative.

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