Dáil Éireann Debate, Tuesday - 8 November 2022
51. Deputy Ivana Bacik asked the Minister for the Environment, Climate and Communications if he has examined bringing the Corrib gas field into public ownership on a temporary basis to control gas prices in Ireland, using powers vested in the Government by the Fuels (Control of Supplies) Acts of 1971 and 1982. [55381/22]
View answerMy Department is not considering bringing Corrib Gas Field into public ownership as a response to increasing gas prices. The Corrib Petroleum Lease, which is granted pursuant to Section 13 of the Petroleum and Other Minerals Act, 1960 (as amended), demises the petroleum in the Leasehold Area to the lessees. All costs relating to the exploration, development and operation of the field have been and continue to be borne by the lessees and not the State.
The most important factor affecting electricity prices in Ireland is the continuing upward trend in international gas prices. In Europe, wholesale natural gas prices have risen and remained high since the second half of 2020. Gas prices are now unprecedentedly high, with UK wholesale gas prices recently reaching record levels. The increase in international wholesale gas prices, have continued to be driven to unprecedentedly high levels by the volatility in the international gas market caused by the Russian invasion of Ukraine.
My Department is working on implementation of EU Regulation (EU) 2022/1854 which provides for a temporary solidarity contribution from fossil fuel sector, including the natural gas sector, in the years 2022 and/or 2023 to provide financial support to households and companies heavily affected by soaring energy prices.
In addition, in October 2022, the European Council asked the European Commission to propose measures on a number of key areas:
- The voluntary joint purchasing of gas;
- a new complementary gas price benchmark that more accurately reflects conditions on the gas market;
- a temporary dynamic price corridor on natural gas transactions on the main European gas exchange, the TTF;
- a temporary EU framework to cap the price of gas in electricity generation while preventing increases in gas consumption;
Ireland is now engaging with the other Member States on these topics on developing these measures.
