Written answers

Tuesday, 20 June 2017

Department of Communications, Energy and Natural Resources

Gas Networks Ireland

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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1771. To ask the Minister for Communications, Energy and Natural Resources his plans to extend a gas line to Cavan town (details supplied); and if he will make a statement on the matter. [27677/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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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 in relation to either the routing of gas pipelines or the connection of towns to the gas pipeline network.

The CER network connections policy stipulates that in order for any town to be connected to the gas network certain economic criteria must be met, which provide that over a certain period the costs of connecting the town are recouped through consumption of gas and  associated tariffs.  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.

In my view, the wider question needs to be addressed as to 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. 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.

Greater accessibility to alternative and lower carbon intensive energy sources should present opportunities to encourage householders and businesses to make more sustainable energy choices.  Accordingly, and against the backdrop of the energy policy White Paper, I am commissioning a study on the wider costs and benefits of gas network extensions, to include possible climate and decarbonisation aspects, as well as the regional and rural development benefits such as in supporting rural centres. I intend that a preliminary report will be delivered before the end of 2017.

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