Michael Kitt (Galway East, Fianna Fail)
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451. To ask the Minister for Communications, Energy and Natural Resources the position regarding the provision of natural gas to the town of Athenry, County Galway; and if he will make a statement on the matter. [41012/13]

Pat Rabbitte (Dublin South West, Labour)
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The Commission for Energy Regulation (CER) is the statutory independent body charged with the assessment and licensing of prospective operators seeking to develop and operate a gas distribution system within the State. In 2006, the CER approved a new network connections policy which enabled assessment of 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 met 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.

The policy framework provides that, over a certain period, the costs of connecting a town or group of towns to the network are recouped through the actual economic consumption of gas and the associated tariffs. Uneconomic projects would increase costs for all energy consumers.

Under the CER's policy framework, Bord Gáis Networks, and more recently Gaslink, carried out a comprehensive assessment of towns not already connected to the national gas network. A "New Towns Analysis Phase 1" report was published in 2006. The study included a review of the feasibility of connecting towns to the natural gas network in Galway/Mayo and the CER made the decision to allow Gaslink to extend the network to eleven of these towns, including Athenry. Prior to the roll out of each town, a detailed analysis of the loads within the town and the revenues associated with them is carried out. There is also a requirement to secure a certain level of customers prior to the development commencing. The gas network has been extended to seven of these towns and work is progressing on the development of the network to Tuam. Work is ongoing to secure economic loads in the three remaining towns, i.e. Athenry, Knock and Balyhaunis, prior to the commencement of construction. To date, the projected loads are insufficient to justify commencement of construction.