Joe Sherlock (Cork East, Labour)
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Question 16: To ask the Minister for Communications, Marine and Natural Resources the position regarding the opening of the gas market; the number of third-party operators providing gas to the industrial and domestic sectors; the way in which the operation of the natural gas grid is to be managed; the locations where the majority of oil and natural gas imports here are sourced; the forecasted demand for natural gas here in 2020, 2030 and 2050; and if he will make a statement on the matter. [13634/06]

John Browne (Wexford, Fianna Fail)
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I can advise the Deputy that provision is made in the Energy (Miscellaneous Provisions) Bill 2006, currently under consideration by this House, for full gas market opening no later than 1 July 2007 deadline set by theEU.

Since July 2004, the gas market has been open to all customers excluding domestic customers. This amounts to 86% of the market by volume. There are currently four suppliers serving the competitive element of the market.

The Commission for Energy Regulation, CER, regulates the natural gas grid through the transmission and distribution licences. This includes approval of capital and operating expenditures and approving network tariffs. It also involves bench-marking of service levels, development of operating and technical codes and resolving disputes in relation to access and charging.

Under SI 760 of 2005, provision has been 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 effectively required to establish a subsidiary company with responsibility for operation of the natural gas grid.

In 2005, all oil imports into Ireland were sourced from the North Sea. These imports were sourced specifically from the UK, Norway and Denmark. Natural gas imports were all sourced from the UK.

In relation to expected natural gas demand, the CER is required under EU regulations to prepare and publish an annual gas capacity statement. The function of this statement is to advise of the adequacy of capacity in the Irish gas transmission network over an eight-year period. The statement forecasts capacity, flows and customer demand for natural gas and provides an indication of likely investment projects required over the statement period. The latest statement covers the period up to 2012 under a number of scenarios. Current projections made by Sustainable Energy Ireland forecast that gas demand is expected to continue to increase by 5% per annum to 2020. This will result in gas accounting for up to 35% of primary energy consumption. There is no reliable data available thereafter.

Damien English (Meath, Fine Gael)
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Question 17: To ask the Minister for Communications, Marine and Natural Resources when he expects an east-west electricity interconnector to become a reality; the anticipated degree to which it might be used for outflows or incoming electricity in the future; and if he will make a statement on the matter. [13824/06]

Brian O'Shea (Waterford, Labour)
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Question 109: To ask the Minister for Communications, Marine and Natural Resources the position regarding the plan to develop an east-west interconnector; if a decision been taken on whether it will be developed on a regulated or hybrid regulated merchant basis; and if he will make a statement on the matter. [13626/06]

John Browne (Wexford, Fianna Fail)
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I propose to take Question Nos. 17 and 109 together.

Security of energy supply is a key imperative for Ireland and the European Union. The relatively small size of the Irish electricity market underlines the need for greater interconnection as a means of enhancing security of supply, promoting competition and integrating the Irish electricity market into the wider European market. In this context, the east-west electricity interconnector project remains a key priority for the Government.

The priority need for enhanced interconnection across Europe has been highlighted by the EU Commission and endorsed by the spring European Council on 24 March. The European emphasis on interconnection is very much in keeping with our own national priorities.

The Minister will be bringing the matter to Government shortly for a decision as to the most appropriate mechanism to secure east-west interconnection in terms of financing and developer selection. His recommendations will be informed by the advice of the Commission for Energy Regulation. Decisions are needed now to ensure that the target date of 2011 for operation of the interconnector is met. In this context, I am pleased to advise the Deputy that the Second Stage of the Energy (Miscellaneous Provisions Bill) 2006 has been introduced in the House. The Bill will provide the necessary legislative powers for the CER, with the Minister's consent, to secure the construction of an interconnector by means of competitive tender, authorisation process or inclusion in the development plans of the transmission system operator. The Bill provides for the possibility that costs related to the interconnector could be recouped through the transmission use of system charge. The Bill will also address a present anomaly facilitating a regulated interconnector not owned by the ESB.

In relation to possible outflows of electricity, east-west electricity interconnection will allow for the potential export of wind-powered electricity, which could be surplus to national requirements due to the variable nature of the wind resource. However, the overall amount of wind-powered capacity which could be safely connected to the national grid after the commissioning of an east-west electricity interconnector would depend on a variety of factors. These include the amount of wind-powered capacity connected in the UK, the nature and point of the interconnection and protocols for operating the interconnection and accessing or allocating the available capacity.