Dáil Éireann Debate, Thursday - 31 May 2018
6. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment the immediate contingency steps he will take to safeguard security and competitiveness of energy supply here following the decision by UK voters to leave the EU; and if he will make a statement on the matter. [23962/18]
View answerI ask the Minister to outline the immediate contingency steps that he will take to safeguard the security and competitiveness of our energy supply. The key issue is a guaranteed supply of energy in view of what is happening in respect of the Brexit discussions and further afield, such as international issues that may impact on energy supply and security.
Contingency planning for Brexit is advancing through the cross-departmental co-ordination structures chaired by the Department of Foreign Affairs and Trade. This work is also informed by the ongoing stakeholder engagement. In addition, senior officials from the Department are engaged with the TF50 EU negotiating team in Brussels in mapping out particular North-South issues as part of the signalled preparations for the future trade discussions.
My Department has completed two civic engagements and published analysis of energy issues in the context of Brexit, including setting out four priorities, the first of which is to maintain security of trade in energy between the United Kingdom and the European Union. A copy of this analysis is available on my Department's website.
I would underline that Ireland is one of 27 European nations of the EU with which the UK is negotiating its future relationship and while there can sometimes be a focus on Ireland’s trade patterns with the UK, it should also be noted that the UK imports approximately 50% of its gas and up to 10% of its electricity.
As the Brexit negotiations continue, of critical importance for Ireland is protecting security of supply and energy trading. Ireland currently has two gas interconnectors and one electricity interconnector with the UK. There are also connecting electricity and gas lines between Ireland and Northern Ireland, and additional North-South and east-west connection is both planned and proposed. There is no reason to believe that gas and electricity will not continue to be traded post Brexit. However, the terms of this trade will be influenced by the terms of the withdrawal agreement finally agreed by the United Kingdom with the European Union. The backstop provision in the draft agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, states at Article 6, “Single electricity market - The provisions of Union law governing wholesale electricity markets listed in Annex 2.7 to this Protocol shall apply to and in the United Kingdom in respect of Northern Ireland.”
I thank the Minister for the reply. At the outset, the single electricity market has been written into law in both jurisdictions so we can take it that regardless of the outcome of the Brexit negotiations that particular issue will continue as is. What is of importance and significance is the Integrated Single Electricity Market, I-SEM, which is further liberalisation and interconnection between North and South in terms of the energy market. That is contingent on the withdrawal agreement and on Ireland and the UK closely co-operating regardless of the outcome of the Brexit negotiations themselves in the context of I-SEM. Has the Minister met with his counterpart to discuss this issue on a bilateral basis?
On I-SEM.
Yes, the Integrated Single Electricity Market. Could the Minister outline whether he or his officials have met or are liaising with their counterparts, because regardless of what happens with Brexit, we should continue to pursue the further integration of the North-South energy market and electricity supply?
I have definitely met with them twice personally and I would have met some representatives of the British Government as well and this is one of the issues we discussed. I-SEM was the key priority issue discussed with Mr. Richard Harrington MP at both of those meetings. I met with my then Northern Ireland counterpart on this as well and I met with a number of companies operating in Northern Ireland and here. There is a lot of personal engagement and there is considerable ongoing engagement between my officials and British officials in Whitehall on this issue. There is also engagement between my officials and the other 26 member states and this would be an issue that I would have discussed with colleagues as well.
The Minister is aware of the importance of having a guaranteed, consistent energy supply at reasonable prices, particularly for international investment. That is a key component for any foreign direct investment company looking around the world for where to locate and invest. The other issue is the competitiveness of the internal Irish economy and if there are tariffs on electricity or on the movement of electricity or energy supplies if I-SEM is not addressed in a proper way, it could be the case, post-Brexit that there would be difficulties and impediments to the free movement of energy supply North and South. As we move to try to integrate an all-Ireland market in this area, I welcome that the Minister has met his counterparts and is proactive and I urge him to continue to do that because this is of critical importance in the context of the climate action and environment brief he holds but also for business, employment and innovation. It is a key component in ensuring we remain competitive as an economy.
While there is a lot of focus on tariffs, regulatory impediments could be a bigger issue, not so much in relation to I-SEM but in terms of east-west developments.
Transactional costs as opposed to tariffs.
Not costs, regulatory issues can be a bigger problem. In fairness, the team within the Department is looking at the broad aspect of this, not just the political focus which is on tariffs. In my conversations with my British counterpart, I have made these specific points. It is not just the issue of tariffs, that is relatively minor. It is getting access to the energy that is of importance. It is important to the British economy as much as the Irish economy. Remember that last winter we exported electricity to the UK because it ran a net deficit. I am glad to say that yesterday EirGrid confirmed that it has begun surveying the seabed off the coast of Deputy Kelleher's own county on the Celtic interconnector. I will be meeting with some of the representatives of Réseau de Transport d'Électricité, RTE, the French transmission network when I travel to Cherbourg next month. I hope to meet my French counterpart at the European Council next month as well.
