Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context | Oireachtas source

499. To ask the Minister for Communications, Climate Action and Environment if a company (details supplied) plans to extend its networks to facilitate connection threats for towns and villages throughout County Westmeath; and if he will make a statement on the matter. [41587/17]

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 Regulation of Utilities (CRU) 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 2015, the then Commission for Energy Regulation approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network.  The CRU 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 CRU 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 gas network in County Westmeath currently stretches east-west across the county, covering Athlone and Mullingar. Further extensions of the gas networks in the county may be possible, but will be subject to assessment in accordance with the connections policy approved by the CRU. I understand that Kinnegad, Kilbeggan and Moate were assessed under the "New Towns Analysis Phase 3" report dated 9th April 2010, published by Gaslink, the predecessor of GNI, including on its website. This assessment found that these towns did not qualify for connection on economic grounds at that time.

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 commissioned a study on the wider costs and benefits of gas network extensions, to include possible climate and decarbonisation aspects, as well as regional and rural development benefits such as supporting rural centres. Following the conclusion of a procurement process, my Department last week appointed a consultant through the Office of Government Procurement tendering process. The contract arrangements provide that the consultant will deliver a preliminary report by year-end 2017, in accordance with the tender requirements.

This project involves a high-level study that will address issues relating to the wider decarbonisation, air quality, climate and emissions and regional and rural development benefits from additional network extensions. It is provided that particular account will be taken of, but not limited to, the following: wider economic and environmental costs/benefits; economics and funding and; potential alternative uses for the network such as renewable gas and hydrogen.