John Brassil (Kerry, Fianna Fail)
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694. To ask the Minister for Communications, Energy and Natural Resources the structure being applied to a company (details supplied) for the sale of gas into the network here; and if he will make a statement on the matter. [37161/16]

John Brassil (Kerry, Fianna Fail)
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695. To ask the Minister for Communications, Energy and Natural Resources if proposed tariffs to deal with the loss of capacity which will occur for the interconnector pipes across the Irish Sea is being applied to a company (details supplied); and if he will make a statement on the matter. [37162/16]

Denis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 694 and 695 together.

I have no statutory function in relation to matters regarding tariffs for the gas industry. Since 2002, the regulation of the gas market has been the responsibility of the Commission for Energy Regulation (CER), which is independent in the performance of its functions. Decisions on the regulatory treatment of the gas network and tariffing are statutorily matters for the CER under the Gas (Interim) (Regulation) Act 2002. The CER, as the independent energy regulator, has a remit to protect energy consumers, ensure security of supply and support competitiveness.

From 2011, in anticipation of the entry of Corrib gas into the system, and in pursuance of its duty to ensure that new sources of gas for the Irish market did not result in unwarranted increases in the price of gas to business and domestic consumers, the CER embarked on a process of reform of the regime governing the regulatory treatment of the two Ireland/UK gas interconnectors and associated tariffing. The rationale for the CER’s proposed reform was that if the then current regime were to persist, new sources of gas coming onstream such as Corrib, and possible liquified natural gas (LNG), would cause the price of gas to rise significantly for all Irish consumers, regardless of the source of the supply. Given our high dependence on gas for electricity generation this would also give rise to electricity price increases and would negatively impact on Ireland’s competitiveness.

On 29 June 2012, following the usual consultation period, the CER published a high-level decision outlining its proposals for the new tariff regime. This CER decision subsequently became the subject of a Judicial Review taken by Shannon LNG. On 11 December 2013 the High Court upheld the CER decision of 29 June 2012. I understand that Shannon LNG has appealed the High Court decision to the Supreme Court.

Following an extensive period of consultation on how the 2012 decision would be implemented, the associated new tariffing regime was introduced with effect from 1st October 2015. Full details are to be found in the CER Decision Paper of 23 July 2015 (CER/15/140) available from the CER website at www.cer.ie.