Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

343. To ask the Minister for Communications, Energy and Natural Resources when a project will be progressed in view of the fact the infrastructure would be beneficial for a town needing job creation (details supplied); and if he will make a statement on the matter. [19090/17]

Denis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

The development and expansion of the natural gas network is in the first instance a commercial matter for Gas Networks Ireland (GNI), which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a national system for the supply of natural gas that is both economical and efficient.

The Commission for Energy Regulation (CER) is statutorily responsible for all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002.  I have no statutory function, under the regulatory framework, in relation to the connection of towns to the gas network. 

In 2006, the CER approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network.  The CER policy stipulates that in order for any town to be connected to the gas network, certain economic criteria need to be met as a prerequisite.  The policy framework provides that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs.  This is designed by CER to obviate against uneconomic projects which would increase costs for all gas consumers.  The key factor which would qualify a town, or group of towns, in any future review would be a significant increase in demand for natural gas, usually resulting from the addition of a new large industrial or commercial facility.  

The question of whether network extensions should, where economically feasible and in line with our energy policy goals in the White Paper, provide for the possibility of future connections in order to contribute to regional and rural development merits further consideration.  At the launch of the Action Plan for Rural Development I set out my view that there are communities partly or sometimes wholly excluded from basic criteria of modern convenience and comfort, in terms of communications, energy efficiency and fuel poverty. My long-standing position on the gas network is that it should be developed generally in rural Ireland to provide natural gas to as many areas as possible. Accordingly, and against the backdrop of the energy policy White Paper, my Department is preparing to commission research and to have a report by year-end into the potential role that natural gas could play in supporting rural centres.  

In the meantime, I am interested in whether ways can be identified to facilitate additional connections to the network contributing to rural development, without additional costs for all gas consumers.