Dáil Éireann debate -
Wednesday, 29 Mar 2000

Vol. 517 No. 1

Written Answers. - Natural Gas Grid.

Richard Bruton

Question:

67 Mr. R. Bruton asked the Minister for Public Enterprise if the details will be published of the proposed onshore and offshore tariff for third party access through gas pipelines in line with the EU directive; and, if so, the date in this regard. [9054/00]

Minister of State at the Department of Public Enterprise (Mr. Jacob)

I recognise the need for early certainty on tariffs for third party access to the natural gas network and I will issue a directive to Bord Gáis Éireann in this regard in the near future.

The EU gas directive requires member states to open up 20% of their natural gas markets by 10 August 2000. In Ireland we have already opened up more than 75% of our gas market. Those companies which are currently availing of third party access pay the indicative tariff set out in my draft pricing directive of March 1998, which I issued for public consultation. We in Ireland are thus in full compliance with the EU gas directive in this regard.

In the light of developments in the marketplace since I published the draft directive, including the possible commercial development of the Corrib field and the interest shown by private developers in building natural gas pipelines, I decided not to issue the directive to Bord Gáis Éireann, BGE, but instead to undertake a fundamental review of tariffs for third party access to the gas network.

I asked BGE to develop proposals on tariff options in the light of the changing market circumstances. BGE consulted widely with interested parties and it presented its report to me in December 1999. This is published on my Department's website. In February I received a report from an interested party which chose not to input into BGE's consultation process.

In order to obtain an independent view of suitable tariff options, I have engaged economic consultants, the Brattle Group, to examine the reports put to me and to propose a suitable tariff structure for the Irish gas network. My aim is to have a tariff that will promote the development of competition in the supply of natural gas, including the development of new indigenous sources of supply, and provide appropriate economic signals in relation to the establishment of new pipeline infrastructure. The Brattle Group has, in turn, consulted with all interested parties and will present its interim findings at a public forum to be arranged in early April. The consultants are due to present their final report to my Department later in the month.

When I have considered their report I will waste no time in making a decision on which tariff structure to apply and I will issue a directive to Bord Gáis Éireann in this regard. I will also publish the consultants' report on my Department's website.