Dáil Éireann Debate, Tuesday - 8 February 2005
70 Mr. Connaughton asked the Minister for Communications, Marine and Natural Resources the extent of the role he expects Bord Gais to play in the production, generation or distribution of energy in the future; and if he will make a statement on the matter. [3610/05]
View answer284 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent of the role he expects Bord Gais to play in the production, generation or distribution of energy in the future; and if he will make a statement on the matter. [3947/05]
View answerI propose to take Questions Nos. 70 and 284 together.
Bord Gais Éireann, BGE, is a commercial State body operating in a liberalised energy market. BGE's functions in the transmission, distribution and supply of gas are as set down under the Gas Act 1976, as amended, that is, to develop and maintain a system for the supply of natural gas to customers which is both economical and efficient.
BGE is both the transmission system operator and distribution system operator in Ireland. Bord Gais is also a gas supplier operating in competition with other suppliers for the power generation, industrial and commercial gas markets. The company is also the franchise holder for most of the residential market. Following full opening of the gas market, which is expected in 2005, BGE intends to continue as a key supplier in this market. The company has over half a million customers, including residential and industrial/commercial. It also has a growing presence in the Northern Ireland gas sector. BGE has no mandate to get involved in the production of gas and the company has indicated that it has no plans in this area.
Section 17 of the Gas (Amendment) Act 2000 extended the powers of BGE to allow the company diversify into other areas, whether gas related or not, which the board considered advantageous. One of the areas that BGE has got involved in is the retail electricity market, on a small but growing scale. The expansion or otherwise of this business is entirely a matter for the board of BGE in the first instance.
Following the opening up of electricity market to competition in 2001, the Commission for Energy Regulation initiated a number of positive actions to address the reluctance by investors to enter the market. One of these actions was a competition that facilitated the entry of two new independent generating plants with a combined installed generating capacity of over 500MW. The competition included an off-take guarantee in the form of a PES contract for the purchase of a specified amount of the electricity generated. BGE, in partnership with Scottish and Southern Energy, SSE, developed a proposed joint venture power station project and entered the Commission for Energy Regulation competition in 2003. The bid was not successful.
