Noel Coonan (Tipperary North, Fine Gael)
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Question 419: To ask the Minister for Communications, Energy and Natural Resources the position regarding the provision of natural gas to towns (details supplied) in County Tipperary; if subvention from the State will be provided to deliver gas to these towns as required for the roll-out; and if he will make a statement on the matter. [26090/09]

Eamon Ryan (Dublin South, Green Party)
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The development and operation of the natural gas network is, in the first instance, a matter for Gaslink, the gas transmission system operator, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient.

The Commission for Energy Regulation (CER), which is a statutory, independent body, has, since 2002, been charged with all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no direct statutory function in relation to the connection of towns to the gas network.

In 2006, the CER approved a new networks connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. This is to ensure that over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. CER allows for the appraisal of a town either on its own or as part of a regional group of towns. Exchequer funding is not provided for the roll-out of new towns connections.

BGÉ has carried out Phase 3 of a comprehensive assessment of towns not already connected to the national gas network. I am advised that the towns of Ballina, Ballyclerihan, Cashel, Carrick-on-Suir, Clonmel and Newport in Tipperary, are already connected to the natural gas network. Cahir has been approved for connection as part of the earlier Phase 2 assessment by BGÉ. Nenagh, Roscrea, Thurles and Tipperary town are included in a total of 42 towns examined as part of Phase 3 of this assessment, which has recently been completed. BGÉ recently submitted its Phase 3 report to the CER and I am advised that the company is currently discussing the report with the CER. The report will not be made public until the final report is agreed with the CER.

The final report will outline which towns or groups of towns would be economically viable for connection, within the revised connection policy criteria. BGÉ has a dedicated email address, newtowns@bge.ie, for the purpose of dealing with queries related to the connection of new towns and routinely engages with local stakeholders to ensure that towns under consideration are assessed in a fully informed and comprehensive way.