Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 12: To ask the Minister for Communications, Energy and Natural Resources his views on reforming the energy market; and if he will make a statement on the matter. [2534/12]

Pat Rabbitte (Dublin South West, Labour)
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The Government's priority energy policy objectives are to ensure secure, sustainable and competitive energy supply for the economy and for consumers. The energy regulatory framework for energy markets must also reflect and address evolving energy policy challenges and deliver compliance with the requirements of both 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 have been a number of changes to the regulatory framework, and to the CER's remit reflecting the evolving energy policy landscape and particularly as a result of EU legal requirements under successive Directives on the Internal Energy Market.

In addition to its responsibility for the gas and electricity markets, the CER's remit has been extended to include responsibilities for security of supply, petroleum and gas safety and consumer protection.

Overseen by the Departments North and South, the CER and the Northern Ireland Regulator developed and designed the Single Electricity Market (SEM) which has been operating in Ireland and Northern Ireland since November 2007. SEM is one of the first cross jurisdictional electricity markets of its kind in the world, a fact that was explicitly recognised by the EU Energy Commissioner at the time of the launch.

The two regulators are currently working together to develop Common Arrangements for Gas (CAG) on the island of Ireland, in the interests of consumers North and South and security of supply, taking into account the EU goal of 2014 for market integration.

The regulatory regime for the Irish electricity and gas market, including consumer protection is currently being enhanced by the legal requirements under the EU's Third Energy Package which is designed to deliver a fully integrated and transparent EU energy market to the benefit of consumers.

The International Energy Agency (IEA) is conducting its periodic in-depth review of Irish energy policy. The Agency reviews the energy policy of every member country every four to five years. On this occasion, and at my request, the IEA review includes, as part of its overall review, an assessment of the efficiency of the Irish electricity and gas sectors, as required under the EU/IMF Programme of Financial Support for Ireland.

Informed by the IEA assessment, my Department in conjunction with the CER will develop proposals for my consideration on any further action required to enhance the regulatory and market framework this year in line with the requirement in the EU/IMF/ECB Programme of Financial Support for Ireland.

I have previously announced that an Energy Policy Framework 2012-2030 will be prepared this year reflecting economic and energy developments at national, EU and international level. The Energy Policy Framework will also be informed by the outcome of the IEA's overall Energy Policy Review which will be published mid year.