I move: "That the Bill be now read a Second Time."
I would like to put the Bill in context. This Bill has its origins in a proposal for a Bill to provide for a variety of issues including, principally, measures to facilitate the construction by Bord Gáis Éireann, BGE, of the Ireland-UK natural gas interconnector. In the event, the provisions relating to the construction of the interconnector became urgent and it was necessary to proceed with these on their own, culminating in the passage of the Gas (Amendment) Act, 1993. The remaining issues had to be deferred and these, together with a number of additional issues which have arisen since then, form the subject matter of the Bill now before the House. As a result, the Bill contains a range of provisions relating to BGE specifically, as well as provisions relating to other aspects of the energy sector.
As its Title indicates, the Bill deals with a variety of energy issues relating to the production, supply, sale, transmission, distribution and use of certain forms of energy and matters incidental to those activities. The Bill provides for measures to facilitate the activities of BGE and ministerial control thereof, regulation of the operation of gas pipelines and electricity cables offshore, inspection of energy infrastructural facilities, investigation of accidents involving those facilities, extending and strengthening the Minister's powers to grant offshore licensing and-or lease undertakings, amendment of legislation relating to superannuation in the ESB, measures to deal with the theft of electricity and gas and recoupment from the ESB of the cost of reviews of the provision and regulation of electricity services carried out by or on behalf of the Minister.
I know it is a coincidence but it is also somewhat appropriate that the House is dealing with this Bill today in the middle of Energy Awareness Week. Energy plays a major role in our economy, with both economic and social implications; the annual final energy demand bill, at approximately £2.5 billion, is about 10 per cent of GNP. Our energy policy has three primary objectives, namely, the supply of a choice of fuels to consumers as efficiently as possible, at internationally competitive prices, taking account of supply security, socio-economic and environmental considerations; the consumption of this energy as efficiently as possible; and the production of as much of national energy requirements from indigenous sources as is economically possible.
I include in the final objective what are now called "renewables" and "alternatives"— wind, hydro and biomass. For example, some months ago I announced the results of the alternative energy requirement scheme. Assuming that all the projects proceed, 111 megawatts of capacity would be installed under this heading. The electricity generated would represent a 35 per cent increase on present production from alternative sources and alternative energy would then supply about 10 per cent of our total electricity needs.
The facts that our total final consumption of energy is increasing and that more than half of the fuel for this is imported highlight the need for measures to achieve efficiency in the use of energy. This can be achieved by raising awareness of the importance of energy efficiency, by ensuring efficient and rational use and by providing incentives where appropriate. Ensuring that energy is consumed as efficiently as possible is one of the three main pillars of Irish energy policy.
The establishment of the Irish Energy Centre and the development of a cohesive national energy conservation policy recognise that in order to promote energy efficiency, it is necessary to create a new culture in relation to energy consumption. It is necessary also to provide sound advice and expert guidance in relation to best practice in individual sectors, to encourage the development of companies offering energy audit facilities and to provide incentives to companies to invest in new systems and technology. Initiatives in this area must be linked with EU targets and objectives within the Union's energy and environment policies.
It is also accepted that proper infrastructure is needed to develop and coordinate activities within this programme. The Irish Energy Centre, coupled with the active participation of the member organisations of the Energy Advisory Board, is responding to that need and the benefits to the Irish economy are now becoming apparent.
In regard to energy costs, consumers here face a number of competitive disadvantages compared to elsewhere in the EU due to the characteristics of the Irish energy sector. Our geographical situation on the periphery of Europe, for example, adds to the costs of energy supply, particularly electricity and gas. Being isolated, our national electricity system must maintain excess standby capacity as spinning reserve, so adding to costs. Our population settlement pattern is also an important factor, our population density, at 51 per square kilometre, being low by comparison with the EU average of 151 per square kilometre.
A number of sections of the Bill deal with BGE. Accordingly I propose to give the House some information about BGE's performance and the major issues affecting the board at this juncture. BGE is a highly successful State body which has performed satisfactorily since its establishment in 1976. It supplies a varied market, including domestic and industrial-commercial users, the ESB and NET. Domestic and industrial-commercial users account for 35 per cent of gas sales and 61 per cent of revenue. Gas deliveries to the ESB account for 42 per cent of total deliveries while deliveries to NET account for 23 per cent. In terms of revenue, the ESB contributes 31 per cent and NET 8 per cent.
BGE has developed the gas industry so that gas now contributes 17 per cent of our total primary energy requirement, as against 6 per cent in 1980. It also contributes 26 per cent of the fuels input to electricity generation. Domestic customers have increased by an average of 9 per cent per annum over the last three years and now stand at 233,000, representing over 30 per cent of all Irish homes. Bord Gáis Éireann plans to have natural gas available to 40 per cent of all Irish homes by the end of this decade, which would be the equivalent of 75 per cent of all homes within the area of the gas grid.
All this progress has been achieved without the need for any State investment in BGE. On the contrary, the Exchequer has benefited to the tune of a total of £394 million in contributions from BGE. Therefore, not only gas consumers but the whole economy has reaped the benefits of BGE's success. This success story is due in a major part to the expertise and resourcefulness of the chairman, Dr. Michael Conlon, the board, the chief executive, Mr. Philip Cronin, and the management and staff of BGE. I congratulate them on their continued success.
Bord Gáis Éireann has a statutory obligation to develop and maintain a system for the supply of natural gas on a commercial basis and any proposals for extension of the gas grid are assessed by the board in the light of that obligation. Only projects which meet the board's economic criteria are undertaken. In that context, I have asked the board to investigate the economics of extensions to Shannon, Ennis, Tralee, Galway and other towns, as I am anxious that the network should be extended to other areas of the country where that would be commercially viable.
The gas industry has reached an important milestone in its history, with the construction of the Ireland-UK natural gas interconnector. This major addition to the gas infrastructure comprises onshore pipelines and facilities in Ireland and Scotland, an undersea pipeline and a compressor station in Scotland. All the onshore and undersea pipeline elements of the project have been completed, while the compressor station is expected to be completed shortly.
The interconnector was built by BGE to provide gas supplies when the Kinsale and associated Ballycotton gas fields are depleted, which is expected to be in the next five years or so, and to provide an alternative supply in the event of any disruption of that source prior to depletion. BGE will then have to purchase all of its gas requirements on the UK-Norwegian markets unless — as I hope — adequate further indigenous supplies are discovered and developed in the meantime.
Bord Gáis Éireann informed me that it is in negotiation for the import of gas from the UK through the interconnector on behalf of a third party. In addition, BGE will import gas from the UK to meet other market requirements which cannot be met by Kinsale Head-Ballycotton gas fields. From October 1996 BGE will start to import gas to meet peak winter requirements for the domestic, industrial and commercial markets.
It is important to note that since December 1993 small volumes of gas have been imported through the pipeline. Also, the pipeline has provided security of supply facilities to protect BGE's core market of 240,000 customers should there be an interruption in supplies of gas from the Kinsale Head-Ballycotton fields. I should add that if further indigenous gas supplies are discovered, the interconnector could be used to export any gas surplus to our requirements.
Bord Gáis Éireann expects to conclude negotiation shortly for the sale of capacity on part of the Scottish onshore pipeline, from Moffat to Twynholme, to a subsidiary of British Gas which will be involved in the transport of gas to the Ballylumford power station in Northern Ireland through its own subsea pipeline on and from October 1996.
European Union proposals pose a further challenge for BGE. In 1992, the European Commission produced two proposals for directives concerning common rules for the internal market in electricity and common rules for the internal market in gas. Following amendments proposed by the European Parliament, the Commission reissued an amended version of the draft directives at the end of 1993. Since then, the draft directive concerning common rules for the internal market in electricity has been extensively discussed, while the draft directive on gas has been put on hold until the draft directive on electricity has been finalised. However, it is likely that the draft directive on gas will be considered by the EU Council in the near future.
Among other things, the draft directive proposes the introduction of arrangements for the use of gas networks by large industrial consumers for the transmission of their own gas at negotiated charges, a facility normally referred to as third party access. The draft directive also proposes that gas undertakings must keep separate accounts for the divisions dealing with production, transmission, storage and distribution activities, in the same manner as they would be required to do if the divisions were separate companies.
The draft directive is at an early stage and will certainly be fully debated and probably amended before its adoption. I assure the House that I will strive for a final directive that will safeguard the interests of the Irish consumer, the Irish economy and the livelihoods of those employed in the gas industry. I am consulting with interested parties on the draft directive in that regard. Against that background and recognising the challenges which face it, BGE engaged consultants to advise it on the enhancement of the key business processes and greater customer focus.
Sections 7, 8, 12 and 13 of the Bill are relevant to BGE. These provisions are designed to enable BGE to function more effectively. I will explain the purposes of these provisions later in my speech. If a need arises for further legislation to facilitate BGE in coping with the challenges of the future, I will, of course, bring forward such legislation at an early date. The Bill includes provisions relating to exploration for oil and gas. The promotion of hydrocarbon exploration is an activity to which the Government attaches considerable importance in the context of national economic development. Further petroleum production from the Irish offshore would add to the immense benefits bestowed on the national economy arising from the production of our own natural gas. With that in mind, it is my intention that every effort should continue to be made to make further commercial discoveries a reality.
The current taxation measures and licensing terms are specially designed to attract the interest of exploration companies in the Irish offshore. These measures have placed Ireland in a competitive position on the world scale for attracting exploration interest. In recent times, stringent efforts have been made to highlight the benefits that can accrue to companies which discover petroleum in Ireland and I am happy to record that substantial progress has been made in enticing companies to explore in our offshore.
A strong interest has been stimulated in exploration and currently there are 24 exploration licences in place. There has also been a steady increase in licensing options and at present nine options covering 34 blocks or part blocks thereof are in force. It is expected that a number of those options will be converted to exploration licences carrying well-drilling obligations. The number of major exploration companies now turning their attention towards offshore Ireland gives me confidence that this renewed interest will result in a significant increase in exploration activity in the coming years. In 1993 the frontier licensing round in the Slyne and Erris troughs off the north-west coast of Ireland resulted in a very positive response with ten exploration companies in five groups being awarded licences over 28 blocks. The Slyne-Erris round signalled the return of a number of oil companies to Ireland and introduced a number of new companies to Ireland in addition to providing opportunities for established companies to expand their interests here.
The interest shown in the Slyne-Erris round was surpassed by the Porcupine licensing round which closed on 15 December 1994. Some 16 exploration companies submitted 11 applications for 35 blocks in the area and last March eight licences were awarded to groups representing 15 companies in respect of 32 blocks. Ireland now has a very good coverage of licences and effective exploration programmes have been committed over Ireland's prime prospective acreage, ranging from the Irish Sea across the Celtic Sea to the Porcupine and Slyne-Erris basins off the west coast. The licences represent a good balance between shallow water and frontier areas. I am hopeful that the efforts in these basins will prove fruitful.
The frontier licences facilitate companies to work in deep water and provide opportunities for Ireland to gain from the rapid technical advances that enable hydrocarbon exploration and exploitation in deep water and hostile environments. Nowadays smaller fields can be economically exploited due to the recent evolution in low cost, fast track development.
In addition to awarding licences under rounds, it is my policy to operate an "open door" licensing system for acreage which is available for licensing. The use of both licensing rounds and the open door system has served Ireland well in recent years and it is my intention to continue with this policy. However, I have decided that two areas should not be available for the present. The Porcupine Basin was not reopened following the close of the round in December 1994. In addition, the Rockall trough has been closed to encourage acquisition of data and preparation of assessment reports so that its hydrocarbon potential could be properly assessed. I expect to be in a position to make an announcement of future licensing opportunities in the Rockall trough in May 1996.
I take particular pleasure from the announcement of the test results of the recent appraisal well, drilled by Marathon just 4.5 miles south west of the Kinsale Head Gas Bravo platform. The initial results appear to indicate the presence of "new" gas, that is gas that would not be possible to extract through the existing Kinsale Head field facilities. This encouraging news endorses the confidence already shown by oil companies in Ireland's offshore and further enhances the attractiveness of investment in it.
The test results are now being analysed with a view to establishing the feasibility of extracting the gas. Although further analysis of the data acquired during the testing period is required, the fact that the well has been suspended gives hope that it may be possible for Marathon to declare commerciality later this year.
At this point I will outline the main provisions of the Bill. Under section 40 (1) of the Gas Act, 1976, persons other than BGE may not construct or operate a gas pipeline over or under the surface of land, without the giving of previous and reasonable notice to the Minister. Section 2 of the Bill will extend that restriction to the seabed in the territorial seas of the State or to a designated area within the meaning of the Continental Shelf Act, 1968. The need for the provision arises from the growing international trend towards the construction of international energy inter-connectors.
The Continental Shelf Act at present covers only pipelines laid in connection with the exploitation of the Irish continental shelf. Section 3 of the Bill extends the relevant provisions of the Continental Shelf Act to apply also to pipelines crossing the Irish continental shelf carrying gas and to electricity cables. The opportunity is also being taken to amend section 7 of the Continental Shelf Act in order to provide the Minister with the powers to make regulations to control the discharge of polluting substances. As a consequence of this amendment, section 6 of the Bill amends the Sea Pollution Act, 1991 so as to exclude pollution from pipelines and cables from that Act.
Section 4 amends sections 5, 6 and 12 of the Continental Shelf Act so as to control the construction, alteration or improvement of any structure or works in a designated area and the removal of any object or material from a designated area without the consent of the Minister for Transport, Energy and Communications and the Minister for the Marine. The functions of the Minister for Transport, Energy and Communications relate to the orderly and proper use of a designated area while the Minister for the Marine's functions relate to safety of navigation.
Section 5 amends section 48 (1) of the Safety, Health and Welfare (Offshore Installations) Act, 1987 so as to extend that section to cover any provision of the Continental Shelf Act, 1968 rather than just section 3 of the 1968 Act.
Section 7 provides for the extension of the powers of BGE to effect certain commercial transactions, e.g. to establish subsidiaries and to lend or advance money or guarantee repayment of moneys by subsidiary companies. For the most part, this section incorporates into statute the provisions of section 9 of the Gas Act, 1976 and the Establishment of Subsidiaries Order, 1990. The powers in the order are being extended to include the power to guarantee the contracts and obligations of third parties. This is deemed necessary to ensure that BGE is not placed at a disadvantage vis-à-vis its competitors at home and abroad. BGE operates in a competitive energy market and should have powers equivalent to those of a company incorporated under the Companies Acts to engage in commercial transactions. From time to time in the course of negotiating its contracts, the board is required to give valid and effective guarantees and indemnities as a matter of commercial bargain and necessity.
The opportunity is being taken to clarify the arrangements for BGE in relation to the establishment of subsidiaries, lending money or guaranteeing repayment of moneys by subsidiaries by providing that the exercise of such powers by the board shall be subject to the prior written consent of the Minister, given with the approval of the Minister for Finance. Sections 18 and 21 make similar provision in respect of the Electricity Supply Board and Bord na Móna, respectively. These controls already apply in the case of Aer Lingus and Aer Rianta.
Section 8 provides for an extension of BGE's borrowing powers for capital purposes to enable the board to issue securities, e.g. the creation of stock or other forms of securities. BGE has informed me that the absence of these powers has caused some difficulty for the board in arranging for borrowing on the most attractive terms. For example, some bodies wishing to deal with BGE in this regard cannot do so because of the constitution of those bodies. The provision in section 8 will overcome this problem. All proposals in this area will be subject to the consent and approval of the Minister for Transport, Energy and Communications, and the Minister for Finance.
There is a need to strengthen the Minister's powers regarding the inspection of energy infrastructures. The Minister's powers to inspect energy infrastructures such as exploration and production platforms at sea, electricity plants, powerlines, gas installations, oil refineries and pipelines are fragmented at present. The Petroleum and Other Minerals Development Act, 1960 contains some powers in relation to petroleum leases and licences. Energy infrastructure is likely to become more widespread and diverse in nature and may increasingly be operated under the control of non-State bodies. It is important that the Minister should have a power, through authorised officers, to oversee all energy operations capable of being a source of risk to the public or the environment and to ensure that they are conducted in conformity with good industrial practice and in accordance with statutory requirements.
Section 9 provides the Minister with the power to appoint authorised officers to inspect energy infrastructures and to oversee all energy operations capable of being a risk to the public or the environment. Authorised officers would be appointed following consultation with the Minister for Enterprise and Employment where appropriate and the powers and duties of authorised officers are set out in the Bill. The authorised officers will be empowered to enforce industry standards and statutory duties in the construction, operation or decommissioning of energy infrastructures.
Section 10 will empower the Minister to order an investigation into an accident or incident involving an energy infrastructure. Apart from existing law relating to safety in workplaces, to the holding of inquiries, and in the case of the gas industry, to the investigation of gas related incidents by BGE on his behalf, there is no power available to the Minister to examine the causes of major or serious incidents involving, for example, drilling rigs at sea and gas or oil production platforms. The powers under this section would be used where the procedures under the Safety, Health and Welfare at Work Act, 1989 are inappropriate and would provide also for ancillary powers relating to the holding of investigations, the protection of life and property following such incidents.
Section 11 details a number of restrictions on the exercise of powers in relation to holding investigations. Where power is vested in a person other than the Minister under any Act to conduct an investigation, the Minister is required to establish whether that person proposes to hold an investigation. If that person proposes to hold an investigation and if the Minister is satisfied that such investigation will give enough information and facts as regards the matters of concern to him, the Minister would not hold a separate investigation. This section is designed to avoid duplication of investigations.
Section 12 provides for the formal vesting, by ministerial order, in Bord Gáis Éireann of the assets of the former town gas utilities acquired by BGE to consolidate ownership of BGE's assets. The conveyance of these assets would normally give rise to the imposition of stamp duties, which could amount to nearly £3 million. Section 12 obviates the need for BGE to rely on a legal conveyance and thereby avoid the payment of duty.
The utilities in question are: Dublin Gas Company; Limerick Gas Company Limited; Cork Gas Company; City of Waterford Gas Company; and Clonmel Gas Company Limited. Bord Gáis Éireann took over the assets of the Dublin Gas Company to secure the continued distribution of gas to Dublin in a safe, efficient and progressive manner. Likewise, BGE acquired the other four town gas utilities to ensure that their customers continued to receive gas supplies.
Section 13 provides for the creation of offences and associated penalties relating to the theft of electricity and gas. The relevant provision of the existing legislation, the Larceny Act, 1916, relating to this subject, in so far as electricity is concerned, is being repealed. The legal experience of bringing prosecutions under the existing legislation was most unsatisfactory and much difficulty was encountered in securing convictions. Accordingly, new provisions are required in a single statute.
It is necessary to strengthen the Minister's powers in relation to undertakings to grant exploration licences, known as licensing options, undertakings to grant petroleum prospecting licences and undertakings to grant petroleum leases. The existing provisions of the Petroleum and Other Minerals Development Act, 1960, do not specify that the Minister may impose conditions when granting these authorisations and do not refer to their revocation where the holder fails to comply with the conditions attached. The amendment to the 1960 Act in section 14 of this Bill will enable the Minister to issue these undertakings subject to such terms and conditions as may be necessary.
The purpose of section 15 is to extend the scope of the Fuels (Control of Supplies) Acts to broaden the definition of petroleum to include, for example, natural gas and to include the production of petroleum as well as the exploitation of the fuel resources of a designated area. These Acts provide for the regulation and control of the acquisition, supply, distribution and marketing of fuels, as well as the control of the import and export of fuels. The Minister's powers under these Acts can only be exercised when the Government has declared by order that the common good warrants such action, in other words, these powers are designed to deal with an energy supply emergency.
Section 16 provides for the removal of an anomaly in the ESB superannuation schemes in respect of staff seconded to the Oireachtas. When an ESB staff member is seconded to the Oireachtas he or she has to pay both the employer's and employee's superannuation contributions to the ESB for the period of the secondment. This amendment proposes that in the event of the member being awarded an Oireachtas pension, the secondment period will be disregarded for ESB pension purposes and on retirement he or she will receive a refund of all contributions paid during the secondment period, rather than just a refund of the employee's superannuation contributions as heretofore.
Section 17 amends the Electricity Supply Board (Superannuation) Act, 1942, to provide for the establishment of a single fund to cover all employees and to provide for trustee discretion on fund investments. The Bill provides for the amendment of the Electricity Supply Board (Superannuation) Act, 1942, so as to provide for the amalgamation of the manual workers' superannuation scheme and the general employees' superannuation scheme. This was to be achieved by revoking the former scheme and transferring the moneys in that fund into the fund in respect of the general employees' superannuation scheme. This amalgamation actually took place in 1981.
Until 1981 superannuation contributions were divided on a 50:50 basis between employees and employer. Subsection (4) provides that this equal divide need no longer apply. The rationale behind the change was to allow the board to take on a greater proportion of the cost in order to fund the changes required by the amalgamation of the two schemes.
Section 19 enables the Minister to recover from the ESB the cost of any reviews and consultancies which may be undertaken to advise on the provision and regulation of electricity. In the short term the provision will allow the Minister to recover the cost of three consultancies, one which commenced in December 1993 and has since been completed and the two others which are at present under way. The combined costs of the three consultancies should not exceed £1 million. Since the reviews concerned all share the common purpose of improving the welfare of the electricity consumer, it is only reasonable that the cost of such reviews should be recovered from the ESB's revenues rather than be borne by the Exchequer.
The most significant of the consultancies relates to major restructuring of the electricity sector approved by the Government. This exercise is designed to stimulate efficiency and create a market which will respond effectively to the wide variety of customer needs. The most significant changes would involve the facilitation of competition in power generation and electricity retail supply. Restructuring is also an essential response to current proposals on the liberalisation of the European energy market. Work on the appropriate legislation and regulatory changes necessary to give effect to the proposals approved by Government is continuing with the advice and assistance of consultants. I hope to introduce legislative proposals in 1996 with a view to achieving a new regulatory framework in 1997.
Section 20 provides for an amendment to the Turf Development Act, 1946, consequent on the moving of the headquarters of Bord na Móna from Dublin to Newbridge, County Kildare.
Section 22 is a simple amendment proposed by the Attorney General and agreed by the Department of Health to resolve a conflict between a section in the Radiological Protection Act, 1991 relating to the medical use of ionising radiation and provisions of European Union legislation. Advice given to my Department was that legal difficulties could arise from a conflict between the primary legislation which prescribes the role and functions of the Radiological Protection Institute of Ireland and the European Communities (Ionising Radiation) Regulations, 1991 if this conflict was not resolved. Briefly, section 7 (2) of the Radiological Protection Act, 1991, as it stands, imposes a general restriction on the functions of the institute by excluding the medical use of ionising radiation from these functions. However, the Union legislation on the other hand places no such restriction on the institute's functions in respect of the use of radioactive substances and appliances other than that the institute should consult with the Department of Health in respect of medical use.
The provision in the Union legislation is considered to be more appropriate and the legal advice is that it must prevail over alternative provisions which conflict with Union legislation. Therefore, section 7 (2) of the 1991 Act is being amended, as proposed in this Bill, to remove the inconsistency between the two pieces of legislation.
Section 23 provides for necessary repeals and revocations, including most of the Turf Development Act, 1981. That Act provided for payment of bog development grants, which have now been discontinued. The private bog development grant scheme was introduced by the Turf Development Act, 1981. The scheme was designed to stimulate the development of private peat resources and provided grants towards access roads, drainage and machinery for bog development. Under the scheme, which was funded by my Department, applicants submitted development plans to Bord na Móna who administered the scheme on behalf of the Department. The scheme proved successful as it brought private turf production to an annual level of approximately 1.5 million tonnes from a previously very low base.
The scheme was terminated in October 1987 having been deemed to have achieved its purpose and Bord na Móna has not accepted any new applications since that date. It has not been possible to terminate financial outlay as there remains work approved which has not yet been completed due to delays caused by bad weather and also a shortfall in funding in recent years. Only when work has been completed can the funds be paid to projects. I understand from Bord na Móna that all outstanding grants will be paid during the current year.
I will be bringing forward a number of amendments to the Bill on Committee Stage. The bulk of these amendments will relate to the role of the Minister for the Marine in relation to the control of energy-related activities in the marine environment.
Deputies are already aware of the decision to introduce competition in the electricity sector. The recently announced 120 megawatt peat-fired power station in the east midlands and the 30 megawatt biomass station will be the first major tranches of electricity generating capacity to be selected by open competition under the new regime. In preparation for these competitions, I am considering introducing a provision in this Bill for the setting up of a power procurer, who will be responsible for negotiating and concluding power purchase agreements with generators and for the subsequent operation of those contracts. Substantive legislation providing for the restructuring of the electricity sector will be introduced at a later stage.
As I have already stated, the Ireland-UK natural gas interconnector is nearly completed. This new facility will have capacity for qualified third parties to transmit their own gas through the new pipeline at a charge to be negotiated with BGE. There is also capacity on the Ireland onshore high pressure transmission system for the grant of such access. Bord Gáis Éireann's objective is to earn revenue from the interconnector at the earliest possible date. Provision of such access to the BGE network will fulfil the Government's commitment in relation to the Moriarty Task Force on the implementation of the Culliton report. IBEC has been pressing for the early introduction of third party access to the gas network in accordance with the commitment on the Moriarty Task Force.
I referred earlier in my speech to an EU draft directive which proposes the grant of such access to gas networks for large scale gas users. My first priority in relation to the development of the gas industry is to ensure that BGE remains a vibrant and progressive State body, with adequate financial resources providing a first-class gas supply to its customers. The position is that third party access to the BGE network is already available on a non-mandatory basis. I am not satisfied that it would be in the best interests of BGE or the gas industry generally that BGE should grant unlimited access to its network for gas transmission. Therefore, BGE should have discretion in relation to the extent to which it is prepared to provide third party access.
I am considering the possibility of including a provision on Committee Stage to allow BGE to provide that facility and to set out the proposed powers and functions of the Minister in that respect.
I commend the Bill to the House.
