The Commission for Energy Regulation (CER) is the statutory, independent body, charged with the assessment and licensing of prospective operators seeking to develop and operate a gas distribution system within the State. I have no direct statutory function in relation to the connection of towns to the gas network.
The CER, in 2006, approved a network connections policy which enabled reassessment of the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns. The policy framework provides that, over a certain period, the costs of connecting a town, or group of towns, to the network are recouped through the actual economic consumption of gas and the associated tariffs. Uneconomic projects would increase costs for all energy consumers.
Under the CER's policy framework, Bord Gáis Networks, and latterly Gaslink carried out a comprehensive review of towns not connected to the national gas network. Under Phase 1 of the review, a total of seventeen towns, including Tuam, were identified as being suitable for connection to the gas network. The connection of Tuam to the natural gas network is subject to achieving sufficient gas demand in the town. In relation to Tuam, the CER has been informed that there is the potential for a number of large customers to utilise natural gas in the short to medium term. I understood that the CER is to make a decision on the matter in the coming weeks in light of updated information from Bord Gáis Networks.
