Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Question 458: To ask the Minister for Communications, Energy and Natural Resources the proposals, if any, there are to extend the natural gas network to a centre (details supplied); and if he will make a statement on the matter. [11575/12]

Pat Rabbitte (Dublin South West, Labour)
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The development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, the subsidiary Network Company of BGE, 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.

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. This policy ensures 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. Otherwise uneconomic projects will increase costs for all energy consumers. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns.

Having regard to CER's current network connections policy, Bord Gáis Networks, and more recently Gaslink, carried out a comprehensive assessment of 39 towns (including Cavan) not already connected to the national gas network, with detailed economic analysis based on criteria outlined in the policy. The study was published in April 2010 following approval by the CER. The Gaslink report found that 35 towns, including Cavan, did not qualify for connection on economic grounds.

Nevertheless, Gaslink continues to review the towns which did not qualify for connection under the Study, and other towns, on an ongoing basis. I understand that following a recent assessment by the CER of a Gaslink-review of Cavan, the CER found that Cavan failed to meet the specific economic criteria to allow the town to be approved for connection to the national gas network. 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.