Dáil Éireann Debate, Wednesday - 15 June 2016
195. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources to report on the impact of Corrib Gas on energy security and pricing in the energy market; and if he will make a statement on the matter. [16095/16]
View answerUp until late 2015, 95% of Ireland’s gas requirement was imported from Great Britain. The Corrib gas field, which came on stream in the final days of 2015, will have a significant impact on Ireland’s security of gas supply when at full production. As published in Gas Networks Ireland's "Network Development Plan 2015", Corrib is expected to meet 77% of demand when in its first full year of commercial production. Following peak production levels Corrib gas supplies will steadily decline year on year.
With regard to pricing, the two main parts of the price of gas to the end customer are the tariff charged for the transportation of gas through the gas network, and the cost of the gas itself.
On tariffs, I have no statutory function in relation to the regulation of the gas market, including the matter of tariffs. This is entirely a matter for the Commission for Energy Regulation (CER) under the electricity and gas regulatory framework as set out in the various regulatory Acts. The CER is completely independent in the performance of its functions and required to be so under national and EU law. The CER aims to ensure that the gas network meets the needs of the Irish gas customer at a reasonable and efficient cost.
On retail pricing, gas prices in Ireland are set against prices on the international gas markets. Gas is imported to Ireland through the natural gas network, or specifically through interconnection with Britain. The price of this imported gas is determined by the UK National Balancing Point price plus the cost of transportation to Ireland. The price of Corrib gas is referenced to the price of imported gas. As a result, Irish customers are exposed to fluctuations in international gas price and neither the Commission nor the gas suppliers have direct control over this part of the value chain.
