Simon Coveney (Cork South Central, Fine Gael)
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Question 245: To ask the Minister for Communications, Energy and Natural Resources if he has completed the legal unbundling of Bord Gáis Éireann's transmission and distribution operations; if he has established the new BGÉ subsidiary as the Irish system operator; if he has not completed these steps, when they are scheduled for completion; and if he has completed these steps, when they were completed. [4399/08]

Eamon Ryan (Dublin South, Green Party)
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The legal unbundling of Bord Gáis Éireann's transmission and distribution systems operator functions from its other functions is in the process of being completed. Statutory Instruments numbers 760 of 2005, and 377 of 2007, transposed the provisions of EU Directive 2003/55/EC into Irish legislation. Bord Gáis Éireann has established 'Gaslink Independent Systems Operator Limited', a subsidiary company, which will have the responsibility of operating, maintaining and developing secure and reliable transmission and distribution systems that are both economical and efficient.

An Operating Agreement in accordance with the provisions of Regulation 8 of SI 760 as amended by Regulation 4 of SI 337, which must be approved by the Commission for Energy Regulation, is being entered into by Bord Gáis Éireann and Gaslink. A Transfer Plan, in accordance with the provisions of Regulation 9 of SI 760 as amended by Regulation 5 of SI 337, must be provided by Bord Gáis Éireann for my approval.

An interim board has been established and the senior management team has been appointed to Gaslink. Permanent independently located accommodation is being prepared. Independent legal advisers have also been appointed for Gaslink. Discussions are ongoing between Bord Gáis Éireann and the Commission for Energy Regulation in relation to transmission and distribution system operator licences for Gaslink and system owner licences for Bord Gáis Eireann. The target date for issue of licences by the Commission is mid-March 2008.

I expect to receive the draft Transfer Plan from Bord Gáis Éireann by mid-March 2008 and I expect to have final approval completed by mid-April 2008. I understand that Bord Gáis Éireann and Gaslink are currently in discussion in relation to the Operating Agreement. It is expected that a draft Agreement will be submitted by Gaslink by mid-March for the approval of the Commission for Energy Regulation. Finalisation and approval of the Operating Agreement by May 2008 will allow Gaslink to formally take over the operation of the transmission and distribution systems.

Simon Coveney (Cork South Central, Fine Gael)
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Question 246: To ask the Minister for Communications, Energy and Natural Resources if he has completed the legal unbundling of the distribution systems operator as an ESB subsidiary; if he has not, when it is scheduled for completion; and if he has, when completion was accomplished. [4401/08]

Eamon Ryan (Dublin South, Green Party)
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I can advise the Deputy that work in relation to the legal unbundling of the Distribution Systems Operator as an ESB subsidiary is at an advanced stage. My Department, in conjunction with the Office of the Parliamentary Counsel has engaged in an extensive drafting process on a Statutory Instrument to provide for the creation of the Distribution System Operator subsidiary company and for its ongoing regulation by the Commission for Energy Regulation (CER). It is anticipated that these complex legislative provisions will be finalised very shortly.

I am also advised that the CER and ESB are contemporaneously progressing with the necessary work to ensure the speedy implementation of the unbundling arrangements when the statutory underpinning has been put in place.

Simon Coveney (Cork South Central, Fine Gael)
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Question 247: To ask the Minister for Communications, Energy and Natural Resources if he has, through the Commission for Energy Regulation agreed and implemented the necessary arrangements to address the impact of changes in the UK regulatory regime for gas exit, as stated in the Energy White Paper; the changes in same and when implementation occurred; and if he has not, the progress that has been made in this regard and when implementation is scheduled to occur. [4450/08]

Eamon Ryan (Dublin South, Green Party)
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Decisions on any necessary actions to be taken by the Department and/or the Commission for Energy Regulation as a consequence of any changes to the UK gas regulatory regime will be taken in the context of the publication by the Office of Gas and Electricity Markets (OFGEM), of revised proposals to the current regime. The publication of such proposals is awaited. OFGEM is the Office of the Gas and Electricity Markets, which supports the Gas and Electricity Markets Authority (GEMA), the regulator of the gas and electricity industries in Great Britain.

On 10 July 2007, the U.K.'s Competition Commission (CC) quashed a decision by the GEMA to reform the gas offtake regime for Great Britain's high-pressure National Transmission System. The principal initiative behind OFGEM's proposals was the creation of a "user commitment" model, requiring all shippers who offtake at a UK gas transmission network exit point to secure sufficient capacity to meet their needs 3-7 years in advance. This would have resulted in a number of changes to the Irish market with regard to the booking of gas capacity from the Moffat exit point of the interconnector between Scotland and Ireland. The decision is currently being reconsidered by OFGEM, having regard to the Competition Commission's views, and I am advised that revised exit reform proposals are likely to be published in the near future.

In the meantime, while awaiting OFGEM's final decision, the CER, supported by my Department, has taken a proactive approach to this matter, and both are in regular contact with Bord Gáis Éireann and with our UK counterparts in relation to it.