Dáil Éireann Debate, Thursday - 10 July 2008
21 Deputy Róisín Shortall asked the Minister for Communications, Energy and Natural Resources the amount of public funding his Department has provided since 2007 and to date in 2008 for developing and expanding the gas transmission and distribution networks; the amount he will spend on such a project; and if he will make a statement on the matter. [28029/08]
Amharc ar fhreagraUnder Section 8 of the Gas Act, 1976, as amended by Section 11 of the Gas Amendment Act, 2002, Bord Gáis Éireann (BGÉ) has a duty to develop and maintain a system for the supply of natural gas that is both economical and efficient.
BGÉ is a commercial Semi State body and is not in receipt of Exchequer funding. The development, expansion, upgrading, renewal and maintenance of the gas network, including projects developed for the purposes of securing the supply of natural gas are funded through BGÉ's own resources, either through reinvestment of profits or through borrowings.
BGE's natural gas transportation business is regulated by the Commission for Energy Regulation, which allows BGÉ a regulated rate of return on its pipeline investments. This rate is currently 5.2%. Any capital expenditure proposed by BGÉ is subject to my approval, given with the consent of the Minister for Finance.
BGÉ spent €179 million in capital expenditure from its own resources in 2007. Of this expenditure €101 million relates to the development, expansion, upgrading, renewal and maintenance of Ireland's natural gas network and €78 million relates to the construction of BGE's power generation plant at Whitegate. Capital expenditure for the year to date on gas and electricity facilities are €74 million and €65 million respectively, based on actual spend to May 2008 and budget for June 2008. The final figures for June 2008 are not yet available.
