Carol Nolan (Offaly, Sinn Fein)
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1298. To ask the Minister for Communications, Climate Action and Environment the estimated costs of extending the natural gas network to towns with a population of over 5,000, and if he will make a statement on the matter. [35810/17]

Denis Naughten (Roscommon-Galway, Independent)
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GNI is a commercial State-sponsored Body under the aegis of the Minister for Housing, Planning, Community and Local Government. 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.  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.

In terms of the cost of extending the gas network, Bord Gáis Networks, and more recently GNI, carried out a comprehensive assessment of towns not connected to the national gas network, which provided estimated figures on the costs of extending the network to these towns. The final reports for this assessment was published in 2010. GNI continues to review towns that did not qualify at the time of the assessment.

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 needs to be addressed, in my view.  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, 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.  The study may produce analysis and material that is relevant to the information sought by the Deputy. It is intended that a preliminary report will be delivered before the end of 2017.

My Department  does not hold the cost information sought by the Deputy.