I announced in December last that a preferred bidder has been selected in the sale process for Bord Gáis Energy. The proceeds from this sale, when they become available, will be available to Government to support stimulus measures in the short term, with 50% intended to be used, in the longer term, to retire debt. The Infrastructure Stimulus Plan includes an Exchequer element to be funded by part of the proceeds of the State asset disposal programme. A list of infrastructure projects to be funded under the Infrastructure Stimulus Plan is available on the website of the Department of Public Expenditure and Reform. There is no current proposal for water infrastructure investments to be funded by the proceeds of the State asset disposal programme.
I understand that Irish Water’s costs in the coming years will be funded through a mix of revenue from the domestic and non-domestic sector, third party finance and State support which may be in the form of both equity and subvention. Irish Water will pay contractors in line with the terms of contracts entered into.
In respect of gas prices, I have no statutory function in the setting of gas prices, whether in the regulated or non-regulated parts of the market. Responsibility for the regulation of the gas market is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. The position is that the CER regulates the Bord Gáis Energy tariff for its domestic customers. Prices in all other segments of the gas market are deregulated.
The CER continues to keep deregulation of the domestic consumer segment of the gas market under review. In its most recent review of the market the CER has concluded that the criteria for deregulation had not all been met to allow for the immediate deregulation of the domestic gas market. Until all deregulation criteria have been met the CER will continue to regulate the Bord Gáis Energy retail tariff.
