Written answers

Thursday, 24 May 2012

Department of Communications, Energy and Natural Resources

Natural Gas Grid

5:00 pm

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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Question 123: To ask the Minister for Communications, Energy and Natural Resources if he will direct the energy regulator to publish the final decision in relation to the gas interconnector as a matter of urgency. [26066/12]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The decision on the regulatory treatment of the gas interconnectors is statutorily a matter for the Commission for Energy Regulation (CER) under the Gas (Interim) (Regulation) Act 2002. I have no function in the matter. The CER, as the independent energy regulator has a remit to protect energy consumers, ensure security of supply and support competitiveness. It also has a duty to ensure that future new sources of gas for the Irish market do not result in unwarranted increases in the price of gas to business and domestic consumers.

On the 17th February the CER published a Proposed Decision Paper on the issue of the regulatory treatment of the gas interconnectors. Together with all players and potential players in Ireland's gas market, Shannon LNG has a key commercial interest in the outcome of the CER's ultimate decision on this very complex regulatory question and given the complexities there are many different perspectives on this issue. On the 1st March the CER held a further Public Forum for stakeholders. The objective of the Forum was to give stakeholders the opportunity to discuss with the CER any issues relating to the contents of the proposed Decision Paper in order to help inform the CER's final decision. Stakeholders had a further opportunity to respond to the CER by the 16th March on the matters raised in the Proposed Decision Paper. The consultation period closed on 16 March. The CER has been examining all submissions received in response to the consultation with a view to finalising its decision and publishing it as soon as possible.

However it is the case that subsequent to the CER publishing its proposed decision, Shannon LNG has made a submission to DG Competition of the European Communities outlining the company's concerns about the CER's proposed decision in terms of whether it would comply with State aid rules. This submission follows on an earlier submission to DG Competition lodged by the company last year. On foot of the most recent submission, DG Competition has requested the Irish authorities to provide detailed responses in relation to the issues raised about State aid compliance. The process now underway regrettably has the potential to further delay CER's decision. CER has assured my Department that it remains committed to publishing a final decision at the soonest practicable date. The CER's decision will bring the regulatory certainty needed for the future by all stakeholders in the gas market including those with investment decisions to make.

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