Introduction

The Commission for Energy Regulation has responsibility for regulating the natural gas market in the Republic of Ireland. As Ireland has few natural gas resources, most of the gas consumed is bought on the international gas markets and imported through the natural gas network, or specifically through pipes which connect Ireland with Britian. Suppliers are responsible for selling gas to customers and Gaslink, the Independent System Operator, is responsible for ensuring that gas is transported safely, through pipelines directly into customer's homes.  Bord Gáis Networks carries out a number of functions on behalf of Gaslink.

Sources of Natural Gas
Natural Gas Supply & Competition
Natural Gas Networks
All Island Gas Project

Sources of Natural Gas

Ireland’s natural gas comes from both indigenous production and imports. There are a number of operational gas fields off the coast of Ireland, Kinsale Head, Ballycotton and the Seven Heads fields are located off the coast of County Cork. There is also a new gas field located at Corrib off the west coast of Ireland. The development of this site is not yet completed.  Due to the finite nature of gas, imports from abroad are very important to the market in Ireland.

Most of the gas consumed in Ireland is bought on the international gas markets and imported to Ireland through the natural gas network, or specifically through interconnection with Britain. As a result, Irish customers are exposed to fluctuations in international gas price and neither the Commission nor the gas suppliers have direct control of this part of the value chain.

Natural Gas Supply & Competition

Since 1st July 2007 the Republic of Ireland’s retail gas market has been open to competition and all gas customers are now eligible to switch their gas supplier. This represents over half a million domestic customers. Increased competition in the natural gas market can potentially offer a number of important benefits to consumers, including increased choice, greater efficiency, lower prices and higher standards of service.

While competition has developed successfully in the business end of the market, the development of competition is still in the very early stages in the domestic market.  Beacuse of this the Commission continues to regulate the revenue earned and tariffs charged by Bord Gáis Energy Supply. 

Natural Gas Networks

There are two types of gas pipelines operating around the country. The larger pipes which transport gas long distances are known as transmission pipes and the smaller pipes which bring gas from the transmission pipes to individual premises are known as distribution pipes. Bord Gáis Eireann (BGE) owns the transmission and distribution systems in the Republic of Ireland.

Bord Gáis Networks (BGN) is the designated subsidiary within Bord Gáis Eireann which constructs and extends the natural gas network in Ireland to the highest safety standards. BGN connect all customers to the network regardless of which natural gas supply company the customer chooses. Additionally, BGN will facilitate meter readings for customers.

All Island Gas Project

The Commission and the Northern Ireland Authority for Utility Regulation (NIAUR) are currently working together to establish common arrangements for gas similar to the arrangements which have already been put in place in the electricity market.  This project is in very early stages at this time.