Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 55: To ask the Minister for Communications, Energy and Natural Resources his views on the Western Development Commission paper, Why Invest in Gas, which outlines the clear benefit of extending the natural gas distribution network to the north west; and if he will make a statement on the matter. [37210/11]

Pat Rabbitte (Dublin South West, Labour)
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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.

The CER, in 2006, approved a new network 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. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns.

This policy ensures that, over a certain period, the costs of connecting the town, or group of towns, to the network are recouped through the actual economic consumption of gas and the associated tariffs. Otherwise, uneconomic projects will increase costs for all energy consumers.

Having regard to the CER policy on new towns connections, Bord Gáis Networks, and more recently Gaslink, have carried out a comprehensive review of towns not connected to the national gas network. In April 2010, Gaslink published its New Towns Analysis Phase 3 report. The study included a review of the feasibility of connecting 11 towns in the West and North West region which are the focus of the Western Development Commission paper, "Why Invest in Gas". However, the Gaslink report found that none of the towns qualified for connection on economic grounds.

Nevertheless, Gaslink continues to review towns which did not qualify for connection under the Study and other towns on an ongoing basis. The key factor which would qualify a town or group of towns in any future review would be a significant increase in demand for natural gas, probably resulting from the addition of a new large industrial or commercial facility.