Speaking in the Dáil on Tuesday, Deputy Noel Coonan urged the Minister for Communications, Energy and Natural Resources to maintain the ‘Regulated Tariff Formula’ which encourages competition in the natural gas market. The RTF regime of regulation took effect in 2003 at a time when Bord Gáis had 100% of the sector.
Bord Gáis now has 41% of the sector due to the continued entry of new suppliers into the gas market such as Phoenix and ESBIE. Deputy Coonan said these entrants have provided competition in the sector due to the RTF consequently providing more choice for consumers.
However, the Commission of Energy Regulation has launched a review of the RTF and indicated the time might be right to remove the regime. The Fine Gael TD, who is also a member of the Joint Committee on Communications, Energy and Natural Resources said: “I believe it’s in the best interest of the public for the regime to continue so competition and regulation can develop further.”
“Minister Eamon Ryan said the regulation of the gas market is the responsibility of the CER. Yet again the Minister is passing the buck. But he was quick to exercise his authority over CER when he recently appointed the hugely important Commissioner for Energy Regulation without interview or an application process. If he has the authority to fill this vital post without consultation I do not accept his claim that he cannot influence the continuation of the RTF,” continued Deputy Coonan.
“I asked Minister Ryan if he agrees that removing the RTF would stifle competition and restrict choice for consumers. As usual, the Minister was evasive in his answer leaving the conclusion in the hands of the CER. Companies in the past have been crippled by high gas prices and we do not want a return to this scenario.”
The Fine Gael TD concluded: “I have been in contact with gas suppliers who said Ireland’s experience in the area of regulation has been viewed as poor across various sectors including banking and telecoms. Relaxing the rules in the gas market would only compound this view.
“There is also a concern that removing RTF would mean lower employment in the energy supply industry, make Ireland less attractive for outside investors and a return of a dominant Bord Gáis,” concluded Deputy Coonan.
Ends
Noel Coonan TD


