Written answers

Thursday, 19 October 2006

Department of Communications, Energy and Natural Resources

Energy Regulation

5:00 pm

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 78: To ask the Minister for Communications, Marine and Natural Resources if he will adopt the recent recommendations of the head of the Council of European Energy Regulators in order to ensure that the powers of national regulators under his Department's remit are reinforced to allow them to adequately monitor and enforce market rules; his plans to use his power of Ministerial Directive to direct CER on the implementation of targets for fuel poverty and security of supply; and if he will make a statement on the matter. [33407/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The recent recommendations of the head of the Council of European Energy Regulators, which were made in the context of its response to the EU Green Paper on Energy, have been brought to my attention. I am awaiting the outcome of the ongoing deliberations on this issue at EU level, prior to making any decisions as to whether further legislative measures are needed in the Irish context. Currently, the Minister has certain limited statutory powers to give directions to the Commission for Energy Regulation (CER) in relation to electricity trading arrangements solely. As the Deputy is aware the Energy (Miscellaneous Provisions) Bill 2006 contains provisions to allow me, as Minister, to provide general policy directions to the CER in the interests of the proper and effective regulation of the electricity and natural gas markets to be followed by the CER in the exercise of its functions.

Security of supply in relation to electricity is a matter for the Commission for Energy Regulation in accordance with the provisions of Article 28 of the European Communities (Internal Market in Electricity) Regulations 2005. These Regulations give the CER formal responsibility in law for security of supply of electricity with much greater powers to act to secure and enhance supply. The CER has been empowered to take any measures necessary to protect security of supply. In particular, it can host a competition to acquire the necessary generation or it can direct the Transmission System Operator (TSO), ESB or any licensed undertaking to implement any arrangements that the CER considers necessary to protect the security of supply.

The Energy (Miscellaneous Provisions) Bill 2006 also provides for emergency powers of direction in the event of a sudden crisis in the energy market and where the physical safety or security of persons, apparatus or installations, or the integrity of the natural gas or electricity transmission system or the natural gas or electricity distribution system is threatened. These powers ensure that in these circumstances I, as Minister, may by order direct the CER or other energy undertakings to take such safeguard measures as I consider necessary. The Energy Policy Green Paper, Towards a Sustainable Energy Future, states that fuel poverty is a matter of concern to Government, which is being addressed in the formulation of energy policy. The Green Paper also notes the role of the Department for Social and Family Affairs in administering the National Fuel Scheme.

A public consultation on this Green Paper is ongoing and one of the key questions for consultation is: What further action should be taken to alleviate fuel poverty? Any proposals to alleviate fuel poverty will be given my full consideration. In this context, I will consider whether the use of the power of direction to the CER is appropriate or necessary, upon enactment of the Energy (Miscellaneous Provisions) Bill 2006.

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