Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 24: To ask the Minister for Communications, Energy and Natural Resources his plans to reform the regulation of the energy market; and if he will make a statement on the matter. [29914/11]

Pat Rabbitte (Dublin South West, Labour)
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Overall energy policy objectives, including the regulatory framework, aim to deliver a secure, sustainable and competitive energy supply for the economy and all consumers. In delivering these objectives, the regulatory framework must meet evolving energy policy challenges and also ensure compliance with the requirements of EU and national energy legislation.

The regulation of the electricity and gas market is the responsibility of the Commission for Energy Regulation (CER). The Electricity Regulation Act 1999 provided for the establishment of the CER as an independent statutory regulator. Since its establishment, there may have been a number of changes to the regulatory framework, and CER's functions, in line with the continually evolving energy policy landscape and partly as a result of EU obligations.

Initially, the Commission was responsible for the regulation and reform of the electricity market only. In 2002, under the Gas (Interim) (Regulation) Act, the Commission was additionally given statutory responsibility for the regulation of the natural gas market. Since then its remit has been further extended to include additional responsibilities, for example for security of supply, upstream petroleum and downstream gas safety and customer protection matters.

The Regulators North and South together with my Department, DETINI and EirGrid collectively developed the Single Electricity Market (SEM), which has been operating as an all-island wholesale electricity market since November 2007. It represents one of the first cross-jurisdictional energy markets in the world, as was recognised by the EU Energy Commissioner at the time of the launch of the SEM.

Building on the success of the SEM, work is underway to develop Common Arrangements for Gas (CAG) on the island, whereby all players in the gas market can buy, sell, transport and contribute to the development and planning of the natural gas market North and South on an all-island basis. The development of CAG is also aligned to the timeframe for implementation of EU obligations in relation to gas security of supply and the integration of gas markets.

The regulatory regime for the Irish electricity and gas market, including new consumer protection standards, is being progressively enhanced by implementation of the obligations under the EU's Third Energy Package.

An independent assessment of the efficiency of the Irish electricity and gas sectors, as required under the EU/IMF Programme of Financial Support for Ireland is being undertaken currently by the International Energy Agency (IEA) as part of its five yearly review of Ireland's Energy Policy. The IEA is assessing existing policy in relation to the energy regulatory framework and the need for further actions to ensure that the electricity and gas markets are efficient and competitive in line with EU requirements.

Informed by IEA's forthcoming assessment, my Department and the CER will determine what actions may require to be taken in order to strengthen the regulatory and market regime in the energy markets in consultation with European Commission Services, as required under the EU/IMF Programme of Financial Support for Ireland.

It is also my intention that a new Energy Policy Framework 2012-2030 will be prepared and published next year. The new framework will take account of the very changed energy and economic landscape since 2007. The new Energy Policy Framework will also be informed by the outcome of the IEA's overall review of Energy Policy, including the assessment of the efficiency of the electricity and gas sectors.