asked the Minister for Energy the projected cost of improvement in the Dublin Gas network in each of the next four years; and the target he has set for the next four years in respect of gas losses as a percentage of sales which now stand at 16 per cent.
Ceisteanna—Questions. Oral Answers. - Dublin Gas Network.
45.
I propose to take Questions Nos. 23, 36 and 45 together.
Significant improvements have been made in all areas of Dublin Gas operations on the safety front during the last few months. The implementation of the recommendations of the Cremer and Warner report relating to Dublin Gas are well advanced and by the end of the year almost all recommendations will have been implemented in full. The recommendations of the VEG GAS INSTITUT report are also being implemented by Dublin Gas as are the recommendations of the Report of the Task Force on Buildings which was published recently by the Minister for the Environment. Progress on these matters is being closely monitored by officials of my Department.
As I said on the occasion of the press conference when I published the VEG report, it is estimated that the cost of mains and services replacement in Dublin will be between £5 million and £10 million in each of the next few years. Between 50 and 100 kilometres of pipeline will be replaced each year which is equivalent to a replacement rate of about 5 per cent per annum. This is the amount recommended by the task force.
Unaccounted for gas is currently about 13 per cent of the volume of gas supplied to Dublin Gas. It is the clear intention that this figure will be reduced to the absolute minimum. The norm for well run utilities is about 5 per cent to 7 per cent.
As regards the trading and financial position of Dublin Gas, Deputies will recall that the Gas (Amendment) Act, 1987, provides for this to be shown separately in BGE's annual accounts. I do not, therefore, consider it appropriate to make a detailed statement on the matter at this stage. I would like to assure the House that safety issues will continue to have priority and there will be no hesitation over necessary expenditure in this area. Such unavoidable expenditures will obviously affect the financial results. On the other hand, I am confident that, despite all the difficulties, sales for the whole of 1987 will be close to 1986 levels.
Would the Minister envisage reporting regularly on specific recommendations outlined in recent reports? The Minister referred to one of them only, that was the replacement of mains. There are several other specific recommendations, such as the level of leak survey, the level of replacement of service connections and so on. Would the Minister report to the House on those on a regular basis? Has the Minister now amended the recommendation contained in the report of the task force that the target for unaccounted gas should now be five per cent to 7 per cent instead of the 2 per cent to 2½ per cent outlined in their report?
The opportunities to report to the House will arise at Question Time and on the occasion of Estimates and other debates in the House. The Deputy can be assured that, on the Estimates debates, I will avail of the opportunity to report to the House on the safety aspects of the operations of Bord Gáis Éireann. With regard to the implementation of the various recommendations — as I said in my reply, the implementation of the recommendations of Cremer and Warner is well advanced. This means that, by the end of this year, almost all of the recommendations, rather than just the specific ones mentioned by the Deputy, will have been implemented. Also the recommendations of the VEG GAS INSTITUT report are being monitored by my Department.
I should like to hear the Minister's comment on a specific recommendation, that is the target set by the task force that they should reduce gas loss to 2 per cent to 2½ per cent. In the course of the Minister's reply he suggested 5 per cent to 7 per cent, substantially higher. Does this reflect a change in the Minister's view as to what should be achieved by Dublin Gas in this crucial area of safety?
I should like to see it reduced to the very minimum, which was the recommendation contained in the report of the task force. I mentioned that a level of 1 per cent to 2 per cent is the ideal. When I referred to 5 per cent to 7 per cent I should say that that is the norm in well run utilities. The Deputy and the House can be assured that it is just not possible to reduce gas losses to zero. However, the principal means of reducing all losses are being followed, that is fogging, spraying, draining operations and a pipe replacement programme. I can assure the House that everything that can be done in those areas is being done.
Would the Minister not agree that the crucial nature of safety dictates that the specific targets recommended by the task force for Dublin Gas should be maintained? Would the Minister not agree that his suggestion that the target level now be raised from 2 per cent to 2½ per cent to 5 per cent to 7 per cent breaches that target? Would the Minister, when answering parliamentary questions here, report specifically on specific targets as they are advanced and not change the targets outlined by the task force?
The Deputy will have an opportunity, by way of parliamentary question, to put questions down and I will answer them.
I am asking a specific question now, that is relating to gas loss, the unaccounted gas. Would the Minister not agree that the target set for such was 2 per cent to 2½ per cent and that he is now talking about a much higher figure?
I mentioned that the figure is approximately 5 per cent to 7 per cent of sales, which is about average for well run gas utilities worldwide. Primary losses are occasioned not merely by leaks in their network. There may be metering errors. They may not be necessarily actual losses through leakage. There are metering errors, most likely to occur during periods of very low gas consumption and defective billing or administrative work which can, on occasion, fail to charge for the entire volume of gas supplied. It is not a question of gas just leaking away. The House can be assured that everything possible will be done to minimise gas losses.
Have the other targets, such as the frequency of gas escapes, the frequency of repairs occasioned by gas escapes, also been pushed upwards to a less satisfactory standard in the same way as the unaccounted for gas target?
The Deputy can be assured that the recommendations will be followed to the letter.