Written answers

Tuesday, 10 February 2015

Department of Communications, Energy and Natural Resources

Natural Gas Grid

Photo of Derek NolanDerek Nolan (Galway West, Labour)
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614. To ask the Minister for Communications, Energy and Natural Resources his plans to make gas available at a location (details supplied) in County Galway; if he will agree to put all the necessary infrastructure in place; and if he will make a statement on the matter. [6060/15]

Photo of Alex WhiteAlex White (Dublin South, 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 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 connections 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 gas to 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 eight of these towns. 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.

The CER is currently consulting on a submission received by it from the gas transmission system operator Gas Networks Ireland, the successor to Gaslink, on revisions to the existing connections policy as set out above.

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