Bernard Durkan (Kildare North, Fine Gael)
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Question 177: To ask the Minister for Communications, Marine and Natural Resources the proposals he has to develop and streamline the natural gas industry; and if he will make a statement on the matter. [13846/06]

John Browne (Wexford, Fianna Fail)
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Plans to develop and streamline the gas industry involve three main strands: the further liberalisation of the gas market to include domestic customers; the extension of the Commission for Energy Regulation's, CER's, mandate in the gas industry to include responsibility for the regulation of natural gas safety; and the unbundling of Bord Gáis Éireann as a vertically integrated utility.

Under provisions outlined in the Energy (Miscellaneous Provisions) Bill 2006 it is proposed to extend the gas market to domestic customer level. This will ensure that all customers will be able to shop around for their natural gas supplier and the market will be fully contestable. The legislation proposed includes a commencement provision which ensures that the market will be fully open no later than the 1 July 2007 deadline set by EU Directive 2003/55/EC.

The Bill also proposes to expand the functions of the regulator to include the regulation and promotion of natural gas safety, and to promote consultation with the National Standards Authority of Ireland regarding gas safety standards. The Bill provides for the way the CER will carry out these functions by establishing and implementing a natural gas safety framework and by directing natural gas industry players to advise customers and the public on natural gas safety issues.

In the recent Statutory Instrument 760 of 2005, further implementing national and EU policy on the development of the gas market, provision was made for the legal unbundling of the transmission and distribution system operations of Bord Gáis Éireann, BGÉ. Under the provisions of this statutory instrument, BGÉ is required to establish a subsidiary company with responsibility for management of the natural gas transmission and distribution grid. This will further facilitate the operation of third party players in the market.