Dáil Éireann Debate, Thursday - 17 July 2014
13. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the provisions that will be made for local authorities to buy energy for electricity and heat from local micro-generation units; and if he will make a statement on the matter. [31646/14]
View answerIreland's electricity and gas markets are commercial, competitive, liberalised and regulated in accordance with frameworks set out in EU and national legislation. The regulation of the electricity and gas markets, including the retail segments of these markets, is the responsibility of the Commission for Energy Regulation (CER). The Electricity Regulation Act, 1999 provided for the establishment of the CER as an independent statutory regulator. Since its establishment, there have been a number of changes to the regulatory framework, and CER’s functions, in line with the continually evolving energy policy landscape and partly as a result of EU obligations.
The CER has a statutory responsibility to regulate the supply and purchase of electricity in both the wholesale and retail electricity markets. Any person or company who intends to supply electricity to a final customer, including to a local authority, requires a supply licence from the CER. The CER grants a licence to supply electricity under section 14(1) of the Electricity Regulation Act, 1999.
The supply and purchase of heat is not a regulated matter and local authorities and others are free to purchase heat as they see fit, whether the producer is a microgenerator or not.
It is important to note that the procurement of energy supplies by local authorities is not a matter in which I, as Minister, have any role or function. Rather, public sector procurement is generally a matter for the Office of Government Procurement (OGP). The current Framework Agreement for the supply of electricity to the Irish public sector runs to 20 October 2014. Matters pertaining to the OGP are the responsibility of the Minister for Public Expenditure and Reform.
