Seán Ryan (Dublin North, Labour)
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Question 25: To ask the Minister for Communications, Marine and Natural Resources the position regarding the development of the all-island energy market; the role renewable energy technologies will play in this integrated market; the way in which the two regulators will co-operate in a single market; his views on the establishment of a single all-island regulator; and if he will make a statement on the matter. [13635/06]

John Browne (Wexford, Fianna Fail)
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Government policy in regard to the creation of an all-island energy market is set out in the all-island energy market development framework which was jointly launched in November 2004.

The key priority within the framework is to put the all-island wholesale electricity market in place by 1 July 2007. The two regulators have already agreed the high-level principles governing the operation of this market and are now working on the detailed rules. This process involves close consultation with stakeholders.

A critical immediate priority for both Governments is to ensure that an appropriate legislative framework is in place to underpin the single electricity market. Delivery of the new single market by July 2007 presents a very challenging timeframe in which the necessary parallel legislation must be enacted. Officials are working intensively with their Northern colleagues and the two regulatory authorities to ensure that this target is met.

At present, the two regulatory authorities co-operate on progressing all-island electricity market issues on foot of a memorandum of understanding agreed between them in August 2004. The way in which the two regulators will work together in the context of the single electricity market will be provided for in the underpinning legislation. In the context of the all-island energy market development framework, the development of a single regulatory body is signalled within the detailed development programme as a longer-term strategic goal. An examination of the benefits and requirements for the creation of an all-island regulatory body is scheduled for 2009-2010.

Work is under way to develop a long-term strategy for renewable energy on an all-island basis. A joint North-South public consultation on an all-island vision for renewable energy by 2020 and beyond has been undertaken. We will develop an agreed joint policy paper this year on long-term sustainability of energy supplies, with a particular focus on renewable electricity generation. As part of this work, a major grid study is under way to address the implications of significantly increased renewables in the electricity mix on the island of Ireland by 2020.

Paul Connaughton Snr (Galway East, Fine Gael)
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Question 26: To ask the Minister for Communications, Marine and Natural Resources if he has in mind legislative changes or proposals with a view to freeing up or improving competition in the energy market with consequent benefit to the consumer; and if he will make a statement on the matter. [13803/06]

John Browne (Wexford, Fianna Fail)
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The Minister has recently published the Energy (Miscellaneous Provisions) Bill 2006. This Bill, which builds on recent secondary legislation to implement the electricity and gas market EU directives, will enhance competitiveness within the energy market and bring consequent benefits to the consumer. The Second Stage of the Bill was introduced to the House earlier today.

One of the key provisions of this Bill is to expand the functions of the Commission for Energy Regulation, CER, to underpin its work on an all-island energy market. The new market will, over time, remove market distortions and should impact positively on the wholesale cost of electricity. It should also make Ireland more attractive as a location for new electricity generation investment and help improve the security and reliability of electricity supplies throughout the entire island.

Another key feature of the Energy (Miscellaneous Provisions) Bill 2006 is the provision enabling the Minister to introduce full gas market opening by ministerial order in advance of the EU deadline of 1 July 2007. The opening of the natural gas market has been implemented in phases in line with EU policy requirements. This final phase of market opening will extend the benefits of liberalisation, previously enjoyed by industrial and commercial consumers, to all natural gas customers who will be able to shop around for their supplier and get the best value. The electricity market in Ireland fully opened on 19 February 2005, when all 1.8 million customers became free to shop around for their electricity supplier. This date is well in advance of the July 2007 deadline for full liberalisation of the electricity markets as set down by the EU in the second Electricity Directive 2003/54/EC.

There are currently five active independent suppliers in the electricity retail market who have tended to focus to date on large to medium sized customers. Competitive activity in that segment is strong with 33% of total energy now being supplied by independents. Over time, as suppliers target the domestic market, those benefits are expected to be extended to the domestic customer. The all-island single electricity market, which is scheduled for 1 July 2007, will see new market and trading arrangements in place which will facilitate and enhance competition.