Denis Naughten
Ceist:71 Deputy Denis Naughten asked the Minister for Communications, Energy and Natural Resources his views on reforming the energy market; and if he will make a statement on the matter. [37211/11]
Amharc ar fhreagraTuesday, 29 November 2011
Ceisteanna (45)
Freagraí scríofa
The Government's energy policy, including the regulatory framework, seeks to deliver a secure, sustainable and competitive energy supply. In achieving this objective, the regulatory framework must meet evolving energy policy challenges and also ensure compliance with the requirements of both EU and national legislation.
The regulation of the electricity and gas market 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 the CER's functions, in line with the continually evolving energy policy landscape and partly as a result of EU obligations.
Initially, the Commission was responsible for the regulation and reform of the electricity market only. In 2002, under the Gas (Interim) (Regulation) Act, the Commission was additionally given statutory responsibility for the regulation of the natural gas market. Since then its remit has been further extended to include additional responsibilities, for example for security of supply, upstream petroleum and downstream gas safety and customer protection matters.
With a view to meeting policy objectives, the CER has played a pivotal role in the development of the Single Electricity Market (SEM), which has been operating in Ireland and Northern Ireland since November 2007. It represents one of the first markets of its kind in the world, a fact that was been recognised by the EU Energy Commissioner at the time of the launch of the SEM .
Building on the success of the SEM, the two regulators are currently working together to develop Common Arrangements for Gas (CAG) on the island, whereby all players in the gas market can buy, sell, transport and contribute to the development and planning of the natural gas market North and South on an all-island basis.
In the immediate future, the regulatory regime for the Irish electricity and gas market, including consumer protection issues, is being enhanced by the obligations on Ireland of the EU's Third Energy Package aimed at developing an integrated EU energy market and improving competition to the benefit of consumers.
The International Energy Agency (IEA) currently is conducting its periodic in-depth review of Irish energy policy. The Agency reviews the energy policy of every member country every four to five years. On this occasion, the IEA review, as part of its overall review of Ireland's energy policy, is providing its assessment of the efficiency of the Irish electricity and gas sectors, under the EU/IMF Programme of Financial Support for Ireland, to have such an independent assessment undertaken.
Based on the results of that forthcoming assessment, I will consider what actions may require to be taken in order to strengthen the regulatory and market reform programme in consultation with European Commission Services, in line with the requirement in the updated EU/IMF Programme of Financial Support for Ireland.
It is also my intention that a new energy policy framework will be published next year. The new framework will take account of developments in economic and energy policy since 2007. The new energy policy framework will also be informed by the outcome of the IEA review.