Dáil Éireann Debate, Tuesday - 17 June 2008
954 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the amount of public funding his Department has provided since 2007 for the upgrading and renewing of the existing gas transmission and distribution networks including reinforcement of the system for security of supply reasons; the amount he will spend on such a project; and if he will make a statement on the matter. [22746/08]
View answer955 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the amount of public funding his Department has provided since 2007 for developing and expanding the gas transmission and distribution networks; the amount he will spend on such a project; and if he will make a statement on the matter. [22747/08]
View answerI propose to take Questions Nos. 954 and 955 together.
Under Section 8 of the Gas Act, 1976, as amended by Section 11 of the Gas Amendment Act, 2002, Bord Gáis Éireann (BGÉ) has a duty to develop and maintain a system for the supply of natural gas that is both economical and efficient.
BGÉ is a commercial Semi State body and is not in receipt of Exchequer funding. The development, expansion, upgrading, renewal and maintenance of the gas network, including projects developed for the purposes of securing the supply of natural gas and are funded through BGÉ's own resources, either through reinvestment of profits or through borrowings.
BGE's natural gas transportation business is regulated by the Commission for Energy Regulation, which allows BGÉ a regulated rate of return on its pipeline investments. This rate is currently 5.2%.
Any capital expenditure proposed by BGÉ is subject to my approval, given with the consent of the Minister for Finance.
BGÉ spent €179 million in capital expenditure from its own resources in the development, expansion, upgrading, renewal and maintenance of the natural gas network in 2007.
