Gas decision imminent

By Jacqueline Hogge A DECISION on whether or not Tuam will be connected to the national gas network is due in a matter of weeks, according to the Minister for Communications, Energy and Natural Resources, Pat Rabbitte. The announcement was in response to a parliamentary question posed by Galway East TD Colm Keaveney in the Dáil last month. The Labour deputy intervened following appeals by members of Tuam Town Council last month where local Oireachtas members were asked to make representations to speed up the process.[private] Deputy Keaveney asked the Minister if he would direct Bord Gáis to meet with Tuam Town Council to make a presentation on the likelihood of both domestic and commercial gas connections in the town. The Minister said that while he had no direct statutory function in relation to the connection of towns to the gas network, he understood the Commission for Energy Regulation (CER) was due to make a decision on the matter in the coming weeks in light of updated information from Bord Gáis Networks. The 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. 'In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite,' Minister Rabbitte said. 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 Phase 1 of the review, a total of 17 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.' In recent months a number of businesses in Tuam have signed contracts with Bord Gáis for commercial connection to the network. It is understood the businesses involved are large industries in the town, with talks ongoing with smaller companies in order to contract the required gas load needed to establish a connection. Bord Gáis said a timeline for actual connection for those companies who had signed up, had yet to be finalised. 'Bord Gáis Networks is pleased to confirm that a number of businesses have signed contracts for connection to the gas network,' said the spokeswoman. 'However, we are continuing to engage with other businesses in the town in order to contract the required gas load to meet the criteria set out by the CER. 'We are working to ensure gas is delivered to these customers as soon as possible. Bord Gáis Networks has provided an updated submission to the CER in relation to Tuam and is awaiting its decision. 'We are not in a position to commit to a timeline for the construction programme at this stage until the necessary approvals have been granted from the CER.' Tuam Chamber of Commerce welcomed the development and said the arrival of mainline gas in the town would be good news for business. 'None of our members have formally told us they have signed contracts with Bord Gáis but it is our understanding that some of the larger businesses in town are interested in getting connected to the network,' said Chamber President Ronan Glynn. 'This has to be welcomed for Tuam as it is another benefit for the town. 'Anything that opens up competition is good as it will give businesses a choice, with rising energy costs being a concern for everyone.'[/private]