Bernard Durkan (Kildare North, Fine Gael)
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Question 341: To ask the Minister for Communications, Marine and Natural Resources the full cost to the economy here of not having a fully liberalised gas market in line with the EU gas market, in view of the recent announcement by the British Chancellor of the Exchequer that liberalisation of the gas market is costing the UK £10 billion and that Ireland tracks UK prices; the actions the Government will take to address the issue; and if he will make a statement on the matter. [14776/06]

Noel Dempsey (Meath, Fianna Fail)
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As a peripheral market on the edge of Europe, Ireland supports the development of an open, transparent and competitive single energy market, which delivers secure supplies of electricity and gas at competitive prices, in the interests of consumers.

The recent statement by the British Chancellor of the Exchequer, Mr. Gordon Brown, was made in response to a parliamentary question in the House of Commons. Chancellor Brown's stated concerns relate to the absence of sufficient liberalisation and competition in the wider EU market where the UK is increasingly sourcing gas as the North Sea gas fields deplete. In the national context, Ireland is moving towards a fully liberalised gas market, in line with the objective of competition in the interests of the consumer. Measures continue to come on stream to achieve this end. Under provisions outlined in the Energy (Miscellaneous Provisions) Bill 2006, currently with this House for consideration, it is proposed to extend the gas market to domestic customer level. This will enable all customers 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.

In SI 760/2005, which further implemented 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, BGE. Under the provisions of this statutory instrument, BGE 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. The unbundling process is under way.