Dáil Éireann Debate, Wednesday - 29 May 2013
156. Deputy Derek Nolan asked the Minister for Communications, Energy and Natural Resources his plans to connect a town (details supplied) in County Galway to the natural gas scheme; and if he will make a statement on the matter. [26036/13]
View answerThe 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 the connection of towns to the gas network. The CER, in 2006, approved a network connections policy which enabled reassessment of the feasibility of connecting certain towns to the gas network. 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. Uneconomic projects would increase costs for all energy consumers.
Under the CER’s policy framework, Bord Gáis Networks, and latterly Gaslink, carried out a comprehensive review of towns not connected to the national gas network. Gaslink published its New Towns Analysis Phase 1 report in 2006. The study included a review of the feasibility of connecting towns to the natural gas network in Galway/Mayo and the CER made the decision to allow Gaslink to extend the network to eleven of these towns, including Athenry. Prior to the roll out of each town, a detailed analysis of the loads within the town and the revenues associated with them is carried out. There is also a requirement to secure a certain level of customers prior to the development commencing. The gas network has been extended to seven of these towns and work is progressing on the development of the network to Tuam. Work is also ongoing to secure economic loads in the three remaining towns prior to commencement of construction. The three remaining towns are Athenry, Knock and Ballyhaunis.
