The development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient.
The Commission for Energy Regulation (CER) is the statutory, independent body, charged with the assessment and licensing of prospective operators seeking to develop and operate a gas distribution system within the State. I have no direct statutory function in relation to connections to the gas network.
In 2006, the CER approved a new network connections policy which enabled reassessment of the feasibility of connecting certain towns to the gas network. This policy was updated in 2011. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns. The policy framework provides that, over a certain period, the costs of connecting a town, or group of towns, to the network are recouped through the actual economic consumption of gas and the associated tariffs.
In December 2012 Gaslink announced a decision to extend the gas network to Wexford town. This followed an earlier decision by the CER to connect the Great Island power station to the gas network.
As regards the connection of enterprises to the gas network, such connections are subject to charges and usage commitments, in line with the CER approved Connections Policy. The Policy details how connection charges are calculated for the various categories of industrial, commercial and domestic customers. Connection costs are split between upfront charges, supplemental charges and future tariff commitments.
Full details are available at Gaslink’s website at www.gaslink.ie. Applications to connect to the gas network should be made directly to Gaslink.