Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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557. To ask the Minister for Communications, Energy and Natural Resources if he will place a hold on any Government funding for the capital phase of the North-South interconnector until such a time that the impact of Brexit on this project is realised; and if he will make a statement on the matter. [5392/17]

Denis Naughten (Roscommon-Galway, Independent)
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The proposed North-South Interconnector is an integral part of the evolution of the all-island Single Electricity Market. It remains a strategic imperative, intended to provide a second high capacity link between the electricity systems in Ireland and Northern Ireland. This will accordingly increase the efficiency of the all-island Single Electricity Market and security of electricity supply and also allow greater levels of renewable energy be connected to the grid. Since its establishment in 2007 the Single Electricity Market has delivered an efficient, competitive, and secure market for customers. The governance framework that applies to it remains in place and is based on national legislation adopted by the Oireachtas and the British Parliament.

Existing energy trading and interconnection arrangements between Ireland and the UK, ensuring the continuity of mutually dependent energy arrangements and maintaining the long standing history of beneficial cooperation in this sphere, are key priorities for both Ireland and the UK.

In line with this the priorities of the Single Electricity Market and the status of the North South Interconnector remain unchanged.

The relevant Departments, Regulators, and stakeholders in Ireland and Northern Ireland continue to work in the all-island context of the Single Electricity Market and are preparing for the consequences of the UK referendum as they arise, to ensure timely assessment and that the best possible outcomes will be achieved.

The costs of development of the North South Interconnector are not borne by the Irish exchequer. The project will be funded in the same way as all other electricity and gas grid investments are paid for. These costs are approved by the regulator and charged by EirGrid, ESB Networks and Gas Networks Ireland to energy supply companies. The energy supply companies generally include these costs in customer bills.