Press
Release March 13th 2012:
Irish Regulator ruling
on proposed gas interconnector tariff outlawing monopoly pricing and
anti-competitive behaviour to cost Shannon LNG €1 billion over 13 years
and seriously compromises the project according to Hess LNG CEO Gordon
Shearer.
In moves to protect consumers and
outlaw anti-competitive behaviour by new gas suppliers, the Irish
Regulator (CER) proposed on February 17th 2012 that all gas
consumers, including those of Shell and Shannon LNG, will contribute to
the cost of running the gas interconnector between Ireland and Scotland
thereby removing the windfall gains that would accrue to any new
entrants to the gas market in Ireland and increasing competition.
The news has been warmly welcomed by
‘Safety Before LNG’ along with other major players in the Irish energy
market.
The
consequences of this proposed decision is that any new entrants to the
market such as Shell and Shannon LNG would have to contribute, relative
to their market share, to the cost of the interconnectors they would
not use directly, thus avoiding a rise in prices for the end consumer.
More
controversially, it prevents Shannon LNG from obtaining a market share
monopoly by using the annual €50 million fixed costs of running the
interconnector as the benchmark for the price it would obtain in the
Irish Market and now seriously threatens their entire project.
Gordon
Shearer, CEO of Hess LNG was already quoted as saying on December 11th 2011:
However,
following the announcement by the CER on February 17th 2012, the actual cost to Shannon LNG
has been modified upwards by the company.
Shannon LNG Managing Director, Paddy
Power, on February 20th 2012 revealed that the pricing monopoly
business model on which the proposed LNG terminal on the Shannon
Estuary was based would have been worth almost €1 billion over 13 years
to its Cayman-Island-registered Hess LNG owners.
Mr. Power, in a presentation to local
planning authority Kerry County Council was quoted by media sources as
saying:
"the tariff could cost the company up
to €75 million annually".
The interconnector from the UK to
Ireland costs approximately €50 million annually (€44.4 million in
2011). Under the new rules, Shannon LNG, which hoped to gain 50% market
share in Ireland would be liable to pay approximately €25 million towards the
interconnector fixed costs every year.
Paddy Power’s admission that Shannon
LNG would lose €75 million annually if it has to contribute to the cost
of running the interconnector has lead some observers to claim that the
remaining €50 million loss by Shannon LNG could only possibly come from
increased market competition, which would be in the interest of
consumers. The revenue lost by Shannon LNG proves, they say, that the
new rules being put in place by the Regulator will lead to real
competition with UK suppliers and force a downward pressure on prices
in order for Shannon LNG to gain market share.
These comments by the Managing
Director of a major energy company subsidiary would seem to undermine
Hess LNG's entire legal argument that not paying for the interconnector
could somehow increase competition in Ireland. The energy executive has
quantified for the first time the "windfall gain", as Minister Rabbitte
called it in the Dail on November 2011, that would accrue to the
offshore company clearly showing that most of this gain would have come
from an anti-competitive pricing monopoly position.
However, energy analyst Paul Hunt
believes that the €75million loss for Shannon LNG may be taken from the
entire transmission network cost. He stated:
1 Bord Gais Networks in its submission to the CER on this issue “estimate
savings of circa €25m - €40m p.a. to the Irish gas market if the
current IC tariff structure is amended and the LRMC approach is
adopted”.
2.
Economic and Social Research Institute (ESRI) strongly recommends
treating the gas interconnectors as part of the essential gas
infrastructure on the island and recovering their capital costs through
the use of system charges paid by all users. This would secure the
guaranteed revenue to cover the historic costs of providing security of
supply and it would ensure that price facing domestic customers would
be invariant as to the quantity of gas sourced domestically.
3.
Endesa Ireland considers that the promotion of competition is best
served by ensuring recovery of BGÉ‘s costs without inflating costs for
consumers via a “diversity premium‘.
4.
ESB Energy International (ESB EI) strongly supports the view that no
diversity premium is necessary ….. ESB EI wants to see reduced costs
for all customers through the efficient transportation of gas on the
island and through more gas entry on the island. ESB EI note the need
to develop Irish price signals on the island should not weaken
competition by pricing out access to the very liquid UK NBP because of
regulatory methods for revenue recovery of assets.
ESB
EI which has already accused Shannon LNG of “free-riding” on the
services that the gas interconnector provides also states in full support of the CER position document :
“ESB EI believes in the principles of the
polluter pays and there being no freeriders that is set out in the
document”
And:
5.
National Electricity Association Ireland (NEAI) considers that Option 4
(Remove Premium) best aligns with the development and competitiveness
of the gas market on the island and is the option that most closely
allays concerns relating to minimising the cost of regulatory
intervention in the market. NEAI note that Option 4 would appear to be
relatively more conducive to the objectives being pursued under CAG and
could better facilitate future gas market developments emanating from
Europe.
NEAI
members would be unwilling to accept a situation whereby additional
costs would be placed on them arising from the developments of
indigenous gas resources.
“Shannon
LNG has retained Matheson Ormsby Prentice (MOP) to review the
consultation paper from a legal perspective and retained the Brattle
Group to review the consultation paper from an economic and regulatory
perspective.”
“MOP have advised that the CER’s proposals
are contrary to Irish and EU legislation as they: (i) amount to focused
discrimination, (ii) propose tariff structures that are not cost
reflective; (iii) provide a cross-subsidy in favour of GB suppliers and
the Moffat Entry Point; (iv) distort intra-state trade; (v) constitute
a fundamental barrier to entry for new market entrants such as Shannon
LNG; and (vi) are in breach of CER’s duties to ensure effective
competition and to protect consumers.”
Shannon
LNG has reserved the right to legally challenge any CER decision in the
courts by stating:
“Without prejudice to Shannon LNG’s rights to
challenge the legality of any decision of the CER, Shannon LNG is still
interested in working with the CER to find a stable, predictable and
long term Interconnector tariff design that recognises the costs of
transporting gas from Scotland to Ireland while protecting
consumer and investor interests.”
The
CER, however, stated that it:
“is satisfied that this proposed solution
will enable an effective and efficient framework for gas
infrastructure, and is in keeping with the letter and spirit of
relevant EU law, and in particular the developing rules for gas market
convergence across the EU. The CER is also satisfied that it is not
precluded by domestic law, or legitimate expectation considerations,
from directing the system operator to adapt the current regime to
incorporate the above provisions. The new tariff regime is expected to
be in place by October 2014.” (page 4 of
http://www.cer.ie/GetAttachment.aspx?id=fbeac93f-b7f8-4b20-a69c-732b06e4ce17
).
Diarmuid
Lynch, formerly
of Energy Trading & Regulation, ESB
Power Generation, who played a major role in the design of the
commercial
Irish gas market in both supply and transportation told the CER
Public Meeting on March 1st 2012 in Dublin that there was “too much noise” coming
from the Shannon LNG side. He said that "Shannon LNG are seeking an added tarrif level to bringing gas into the UK directly" and while cautioning that auctions can spook the market broadly supported the CER proposals.
Minister for Energy Pat
Rabbitte has continually stated in the Dáil that he will not interfere with the
Regulator in its decision making process.
Speaking in the Dáil on Wednesday
March 7th, 2012 Minister Rabbitte said that:
He said, later that day,
that:
Note 2.
Hess LNG has repeatedly threatened to pull out of
the Shannon LNG project if it is forced to pay any sizeable tariff according to
various media reports e.g.:
1.
“If
Shannon LNG are forced to pay a large tarriff towards the upkeep of the gas
pipes, the company will simply walk away from its plans for the landbank, The
Kerryman understands. However, if faced with a relatively modest tarriff or
none at all, the company will then decide whether or not to commit to a final
investment that would see the gas plant taking shape” (http://www.kerryman.ie/news/land-bank-3020622.html Kerryman Feb
15th 2012)
“The importance of LNG
for north Kerry and west Limerick cannot be
emphasised enough. We are concerned with as many as 450 jobs to start it up.
Reports, true or otherwise, have been consistently circulating in the area that
Hess LNG is on the brink of pulling out because of the possible €10 million
tariff per year to use the national gas pipe network. The regulator has told
Shannon LNG that it must pay to use the gas pipeline that connects Ireland to the UK and that will cut costs by €10
million. The parent company, Hess LNG, sees this charge as unsustainable and as
a consequence, has been considering its future. The company has invested up to
€50 million in the project to date.”
3. The Kerryman newspaper:
North Kerry set to lose promised jobs By
DONAL NOLAN dnolan@kerryman.ie
Wednesday May 18 2011
(http://www.kerryman.ie/news/north-kerry-set-to-lose-promised-jobs-2651741.html
)
“SHANNON LNG will pull
out of its planned multi million euro
Ballylongford landbank project, with the loss of hundreds of jobs for
North Kerry, if it is hit with
massive charges that are being threatened by the Commissioner for
Energy Regulation (CER).Local supporters are frustrated that the
project, which promises 450 jobs in the
short term, has already been massively delayed by red tape.”
“Arts Minister Jimmy Deenihan has
told the Limerick Leader that Shannon LNG’s top brass have indicated to him
that if the Commission for Energy Regulation (CER) impose any major delay on
making a decision in its €600m plans to open a liquid natural gas terminal on
the Shannon Estuary, near Ballylongford, they “may consider concentrating their
money and efforts elsewhere.” “
By Donal Hickey - Thursday, December
08, 2011
OBJECTORS to a proposed €500 million gas terminal on the Shannon Estuary have
described a recent statement by Energy Minister Pat Rabbitte as a "game
changer".
The minister warned of an increase in gas prices due to the cost of a gas
interconnector with Britain
if the Shannon LNG (liquefied natural gas) project goes ahead at Tarbert, Co
Kerry.
The Commissioner for Energy Regulation (CER) has told Shannon LNG it will have
to pay a €10m tariff per year towards the operation and maintenance of gas
interconnectors with Britain
but the company is refusing, saying it will not use the interconnectors.
A decision from the commissioner is expected inside the next two months.
Speaking in the Dáil, Mr Rabbitte said in an environment in which gas from the
Corrib field and LNG met some, or all, of Irish demand, the interconnectors
built and owned by Bord Gáis Éireann would become under-utilised. With fewer
customers to pay the €50m annual cost of the interconnectors, prices for
consumers would rise, he said.
"We have no wish for prices to be pushed up as a result of a stranded
asset, that is the interconnector, and a windfall profit to the multinationals,
much as we welcome them here, whether they are associated with Corrib or
LNG," Mr Rabbitte told Sinn Féin TD Martin Ferris.
Yesterday, the Safety Before LNG group described Mr Rabbitte’s statement as a
"dramatic game-changer".
"Shannon LNG is hoping to make millions of euro profits every year with
state support at the consumers’ expense at time of increasing fuel
poverty," said the action group. "From every angle looked at, be it
environmental, safety, strategic planning or economic, the Shannon LNG project
defies logic and is the wrong project in the wrong place and is against the
strategic national interest.
Meanwhile, Hess LNG chief executive Gordon Shearer said the tariff not only
contravened EU law but represented a massive policy shift from the previous
government’s stance on interconnector policy.
Note
3.
Media Reporting on the issue:
Radio Kerry reported the story as
follows:
http://www.radiokerry.ie/news/
20 Feb 2012
Shannon LNG says Ireland
closed for business to commercial energy sector
Ireland is closed for business to the
energy sector at present.
That's according to the managing director of Shannon LNG, Paddy Power, who gave
a presentation on the status of the project to the monthly meeting of Kerry
County Council.
The 600 million euro liquefied natural gas plant on the Tarbert Ballylongford
landbank has been beset by delays.
The project would bring 650
construction jobs and 100 permanent posts when complete.
Last Friday, the Commission for Energy Regulation published a draft
recommending tariffs for gas interconnectors are applied to companies such as
Shannon LNG which won't use them.
A public consultation process is ongoing.
Today, Paddy Power from Shannon LNG
told Kerry County Council the move is a fundamental change in Government policy
saying it was like turning up for a football game only to be told you were
playing hurling.
He said the tariff could cost the company up to 75 million
annually.
Mr Power told Radio Kerry News they
would not be making a statement on the how the proposed tariffs would impact on
the future of the project until they have studied the draft in detail.
MEP Sean Kelly said in other
countries the project would be up and running within six months and he will be
checking if the tariffs break EU competition law.
Deputy Brendan Griffin said he is hoping to raise the issue in the Dail this
week and Deputy Arthur Spring
said the Energy Commissioner must account for himself.
A deputation is due to meet the Taoiseach soon to discuss the matter.
http://www.kerryman.ie/news/investor-set-to-walk-away-from-1bn-kerry-project-3027344.html
(Investor set to walk away from € 1bn Kerry project – Kerryman
Feb. 22nd 2012)
Investor set to walk
away from € 1bn Kerry project
By DÓNAL NOLAN AND MARISA
REIDY
Wednesday February 22 2012
SHANNON LNG will walk away
from its planned €1bn investment in the Ballylongford landbank unless the
Commission for Energy Regulation (CER) agrees to cut tarriffs that could cost
the gas company €75 million a year.
The long-running saga of
the LNG plant entered its darkest hour this week after the CER announced on
Friday its proposal for swingeing tarriffs on gas suppliers.
The liquified natural gas terminal
would create up to 400 jobs for the four-year duration of its build and turn
the landbank into the thriving hub of industry locals have been hoping to see
for decades.
Anger is becoming even more
acute in Ballylongford and Tarbert this week, however, following the CER
announcement. The tarriffs are principally being introduced to pay for the
upkeep of the existing gas pipeline between Ireland. and Scotland.
However, Shannon LNG has no plans to use this pipeline.
Based on its own
calculations on foot of the CER document on Friday, Shannon LNG believes it
would face €75 million per year in tarriffs on gas imports through the
landbank. This led Shannon LNG CEO Paddy Power to make the ominous
pronouncement on Monday that 'Ireland
is closed for business to the energy sector'.
His statement is being
taken as the darkest note yet for the future of the plan.
While Shannon LNG would not
make a more detailed statement to the media on the matter, The Kerryman
understands the company now believes it cannot invest in north Kerry unless the
CER drastically changes its planned tarriffs.
The matter is also being
compounded by the consultative nature of the CER process. Friday's announcement
is a draft decision and open to debate into the future, further delaying the already
long-drawn out process that has stymied progress on the LNG project for years.
The CER told The Kerryman
that it would not comment on Mr Power's figure of €75 million per year saying
it was a ' calculation for Shannon LNG to make'. But it said a final decision
on the gas tarriff process would be made by the end of April. THE head of
Shannon LNG, Paddy Power, has accused the Commission for Energy Regulation
(CER) of putting obstacle after obstacle in the way of the conpany's plans to
construct a billion-dollar gas plant in north Kerry that could essentially save
the area from being devastated by recession.
Mr Power said the company
is frustrated and utterly bewildered at the CER'S decision to suddenly change
government and regulatory policy on gas pipelines tariffs, which he claims will
now cost Shannon LNG up to €75m per year in tariffs.
At a meeting of Kerry
County Council on Monday — three days after the CER published its draft paper
on gas tariffs — Mr Power said he was at a loss to understand why the CER is
putting 'block after block' in the way of a ddevelopment that will offer a
capital investment of €1bn and secure 600 jobs over the next four or five
years.
He explained that initial
tariff arrangements were put in place back in 2011 to encourage other suppliers
to come and invest in the country, whereby each supplier paid their own costs.
Now he says, the CER is asking companies such as Shannon LNG to pay tariffs to
subsidise their competition, which he said, have 'absolutely flummoxed' the company.
"We were all set to
start in 2014, after years and years of delays, and now we are being told that
we have to pay €75 million per year to subsidise competitors," he said.
"We have ticked all the boxes and have already invested €62 million in the
project, and we find it frustrating, to say the least, that the rules are now
being changed at the 11th hour.
We trusted the ministers
and that is why we made the investment. This is no way to do business. As far
we are concerned Ireland
is closed to business for the energy sector."
Mr Power said that the
company is extremely bewildered that so many ' bureaucratic challenges' are
being put in the way of the project by the CER, which he said is supposed to
encourage fairness and competition.
He said the company took
gave exception to the new regulations that were introduced only last year, when
Shannon LNG was ready to go ahead, saying it did not bode well for future
investment in Ireland.
- DÓNAL NOLAN AND MARISA REIDY
http://www.kerryman.ie/lifestyle/delays-faced-by-lng-project-beggar-belief-3027289.html
(Delays Faced by LNG Project Beggar Belief – Kerryman )
Delays faced by LNG project beggar belief
Wednesday February 22 2012
COULD we be forgiven in
Kerry for thinking we have a government that simply doesn't care about the
economic prosperity of this little part of the island?
People in north Kerry are
fast coming around to this view at least, as the billion-dollar potential
investment that is the Shannon LNG gas plant enters even more uncertain times.
Just in case anyone is
still in any doubt as to the potential of this plan, let us spell it out again.
A massive gas plant could be built on the Shannon Development-owned landbank
between Ballylongford and Tarbert, creating up to 400 jobs locally for the
duration of the four-year build.
Once situated in north
Kerry it could well have the added bonus of attracting more industry to the
area and lead to a transformation of the economy of the entire region. The
first year of the build alone would lift the area out of recession, locals
believe. After more than 40 years of empty promises for industry on the
landbank, the area finally stands to secure a major employer.
That the company has
invested over €60 million on its Irish plans already, says much for its
patience and more for the potential promise of the Irish market and the profits
to be made here.
The project was originally
brought in under the Strategic Infrastructure Act, a supposed 'fast-tracking'
process. Once through the planning stage — against significant objection from
some quarters locally — it was held up by an inordinate delay as two government
departments tried to figure out where responsibility for the foreshore licence
lay.
It now appears the
regulator could charge the company €75 million a year for the upkeep of an
already existing gas pipeline it will never use. That's enough to persuade LNG
that Ireland
is closed for business as far as it is concerned.
The regulator has said the
government has the power to direct it on policy, which could see this charge
set aside this charge. But the government takes a different line and insists it
cannot influence the regulator because it is an independent body.
This latest depressing
twist in the long-running saga beggars belief. How can a State that acts like
this ever hope to get itself out of recession?
Here
we have a foreign investor willing to stake up to $1 billion, creating hundreds
of jobs and securing a major fuel source for the State in the process – the
same State, that is so broke it is cutting even the tiniest of services for the
most vulnerable in society. It is little wonder all in north Kerry are
scratching their heads this week in disbelief
http://www.irishtimes.com/newspaper/finance/2012/0222/1224312169958.html
(Government told
of gas tariff threat to project – Irish Times February 22nd 2012)
Government told of gas tariff threat to project
Energy: THE
GOVERNMENT is being asked to intervene to save key energy projects near Tarbert
on the Shannon estuary worth €1 billion after
a proposed change in the way gas suppliers pay tariffs.
A meeting
of Kerry County Council this week heard how new tariffs outlined by the
Commission for Energy Regulation, to be imposed on gas suppliers to make up for
an expected reduction in the usage of the Bord Gáis interconnectors with the
UK, were likely to jeopardise the Shannon Liquified Natural Gas (LNG) project,
and had “shell-shocked” its backers.
The
project by Hess Corporation has finally cleared the planning process after six
years.
However,
the new tariffs would cost the Shannon LNG project $75 million a year, and was
now threatening its existence.
http://www.examiner.ie/ireland/government-called-on-to-save-500m-gas-project-184619.html
(Government called on to save €500m
gas project - Examiner Febuary 22nd, 2012)
Government called on to save €500m gas project
By Donal Hickey
Wednesday, February 22, 2012
The Taoiseach and the Government were yesterday
called on to intervene to save a €500m gas project earmarked for Tarbert, on
the Shannon Estuary.
New
tariffs, announced by the Commissioner for Energy Regulation on Friday, met
with shock in north Kerry where the Shannon LNG (liquid natural gas) project
has widespread support.
The tariffs would cost Shannon LNG €56m a year that it had not anticipated, and
were now jeopardising the project, a Kerry County Council meeting heard.
Separately, Tom Fox, spokesman for Tarbert Development Association, which is
strongly supporting the project, said the proposal was now in serious
difficulty. "The Government needs to take control of the situation and
needs to intervene. We desperately need someone [to act] on our behalf.
Otherwise, the project will be lost."
Mr Fox also appealed to Jimmy Deenihan, the arts minister and also TD for Kerry
North/West Limerick, to use his influence at cabinet level.
Around 650 jobs would be created during construction, in Tarbert, and 100 jobs
when the terminal was in operation, according to the company.
Making a presentation to the council on the current situation facing Shannon
LNG, the company’s managing director, Paddy Power, said there will be an
additional cost on gas suppliers to make up for an expected reduction in the
usage of Bord Gáis’s interconnectors with Britain.
Mr Power said no grant aid was being sought by the US-owned Hess Corporation,
of which Shannon LNG is a subsidiary, for the regassification terminal and all
planning hurdles, including the pipeline link to the national gas network near
Foynes, had been cleared in the six-year-old project.
But there was now a fundamental change in Government policy, "like turning
up for a football match only to be told you were playing hurling".
"In 2001, the Government put the rules in place. Now they are changing the
rules. This is no way to do business," Mr Power said.
Hess had spent some €49m on the project to date, he told the meeting.
Shannon Development regional manager Denis Moran said it would be an
"absolute tragedy for north Kerry" if the project did not does not go
ahead. "It has the potential to revolutionise the whole area."
However, Safety Before LNG, which is objecting to the project, welcomed the new
tariffs which, it maintained, would protect consumers and outlaw
anti-competitive behaviour by new gas suppliers.
"The CER decided that all gas consumers, including those of Shell and
Shannon LNG, will contribute to the cost of running the interconnector, thereby
removing the windfall gains that would accrue to any new entrants to the gas
market in Ireland
and increasing competition," the objector said.
Safety Before LNG also said the Shannon LNG admission that the new tariffs
would cost it €75m annually showed that the pricing monopoly business model, on
which the proposed terminal was based, would have been worth almost €1bn over
13 years to the Hess corporation.
Most of the gains would come from the company’s anti-competitive monopoly
position, Safety Before LNG claimed.
http://www.kerryman.ie/news/anger-and-disbelief-in-county-council-3027372.html
(Anger and disbelief in County Council - Kerryman February
22nd 2012)
Anger and disbelief in County Council
By MARISA REIDY
Wednesday February 22 2012
THE announcement on Monday
that the future of Shannon LNG now hangs in the balance was met with anger and
disbelief at a meeting of Kerry County Council.
The Commission for Energy
Regulation (CER) was accused of imposing tariffs which effectively protect
competitors, while threatening the biggest investment ever proposed for the north
Kerry area.
In a stinging attack on the
CER, Cllr John Brassil said the regulator was imposing tariffs to protect the
Bord Gais infrastructure, and doing so as to deter projects like LNG.
Questioning what she termed
a lack of political will, Cllr Toireasa Ferris said it was mind-boggling that
this project wasn't being embraced by the government, which has the power to
direct the CER on policy.
In an impassioned plea to
our elected representatives, Cllr Michael O'shea warned them not to 'mess this
up' and urged them to talk to the Taoiseach about the importance of the project
once again.
Terry O'brien agreed that
the elected members had a duty to the people of Kerry who voted for them to
ensure that they go back to the Dáil and deliver on the jobs they promised when
seeking votes.
- MARISA REIDY
http://www.kerryman.ie/news/deenihan-to-raise-delays-at-cabinet-3027374.html
(Deenihan to raise delays at Cabinet)
Deenihan to raise
delays at Cabinet
By Dónal Nolan
Wednesday February 22 2012
REACTION to the Commission
for Energy Regulation decision from politicians in Kerry became increasingly
frantic this week as they struggled to formulate a response to the
announcement.
Shannon LNG CEO Paddy Power
told Kerry County Council on Monday that the decision could result in the
company having to pay €75 million per annum in tarriffs to the State; a figure
believed to be unviable for the company.
Minister Jimmy Deenihan,
who has supported the project from the beginning but now finds himself in a
government that is coming under increasing criticism in Kerry for its handling
of the latest episode in the LNG saga, said he will be raising the matter
immediately at Cabinet. He suggested the government shares the concerns of
Shannon LNG.
"I will be raising the
matter with Energy Minsiter Pat Rabbitte and Taoiseach Enda Kenny. This is so
important, we cannot lose this project. It would be a major blow to the region.
I will be in direct contact with Shannon LNG who are very concerned about it
and we share those concerns."
Fianna Fáil Senator Ned
O'sullivan said the government must come up with a package to recompense LNG if
the CER paper results in heavy tarriffs for the company. "This is quite a
sizeable setback for the principal players. The government has to ensure that
the project goes ahead for the good of the region. I will be calling on the
government and Minister Deenihan to look at alternative ways Shannon LNG could
be recompensed for paying for the interconnector," he said.
Tarbert native and Fine
Gael county councillor Jim Finucane is organising a meeting between Kerry County
Council and the Taoiseach in the near future. "A settlement conference has
to be established now, under an independent facilitator to work out a formula
acceptable to all sides. The CER is talking about workshops on the issue, but
the time for that and for meetings about meetings is over, we have to enter a
decision-making process now."
- Dónal Nolan
http://www.kerryman.ie/news/locals-struggle-to-understand-delays-3027373.html
( Locals
struggle to understand delays – Kerryman February 22nd 2012)
Locals struggle to understand delays
By DÓNAL NOLAN
Wednesday February 22 2012
BALLYLONGFORD and Tarbert
locals are deeply angry and struggling to make sense of the latest, bleak turn
in the longrunning LNG saga.
"It just makes no
sense at all to us and people here are very, very angry, particularly with our
politicians," Chairman of the Ballylongford Enterprise Company Noel Lynch
said.
"The Regulator said he
is giving himself two years to make a final decision on the tarrifs and Paddy
Power of LNG made it very clear that the company is not going to hang around
for that length of time. It is crazy that the politicians of our country could
let it come to this and Ballylongford is deeply angry with them."
What locals see as
pointless bureaucracy put in the way of Shannon LNG is a particularly sore
point, Mr Lynch said. "Changes in the gas industry in 2001 made it clear
that the market here was going to become much more competitive and it was on
that basis the LNG came into the market here..
"At no stage was this
tarrif flagged to the company over the six long years of the planning process.
They have already invested $72 million in the process so far. Now, the CER made
it quite clear it would take direction from the government on policy in
relation to this issue, we don't know why the politicians said they couldn't
and that no direction was given. This is the worst possible thing they could
have given to us.
"People are very, very
angry locally. It is clear to us that this could be the endgame for LNG and if
it goes there is only one group people here will hold responsible, our
politicians."
Ballylongford publican and
Enterprise Company member Micheal Finucane said people cannot believe what is
happening.
"It just looks like
anything outside of Dublin
doesn't come into the equation. They don't give a fig about us down here.
Shannon LNG got all the planning, the licences, they have asked for no grants,
they are going to buy the land, create hundreds of jobs in the near future and
bring down the price of gas nationally. How could it be any better?"
- DÓNAL NOLAN
http://www.irishtimes.com/newspaper/finance/2012/0302/1224312633615.html
The Irish Times - Friday, March 2, 2012
Dispute over
charges for gas pipelines use casts doubt on €600m project
BARRY O'HALLORAN
A DISPUTE over
charges for the use of the Republic’s natural gas pipelines has left a question
mark over the future of a €600 million project.
Shannon LNG, which
has plans to build a liquid natural gas facility in Kerry at a cost of €600
million, has warned proposals to charge all operators in the Irish market for
access to gas pipelines connecting Ireland
and Britain
threaten its commercial viability. Over 90 per cent of the natural gas used in
the Republic comes from Britain
via two pipelines, known as interconnector one and two.
The Commission for
Energy Regulation, which oversees the industry in the Republic, is proposing
all suppliers pay for the interconnectors, irrespective of whether they use
them. However, Shannon LNG opposes this. It will not require the
interconnectors as the gas it supplies will arrive by ship. The commission is
due to make a final decision on this at the end of the month. The matter was
discussed at a meeting involving the regulator and a number of companies
involved in the Irish gas market in Dublin
yesterday.
Shannon LNG, which
is backed by US
energy giant, Hess Corporation, has said it will not make a final decision on
whether to proceed with the project until the regulator clarifies the charges
issue.
Bord Gáis
Networks, which built the interconnectors at the Government’s request, favours
charging all suppliers for pipelines, as it says they are vital to ensuring the
supply of the natural gas to this country. The company says forcing it to pay
for interconnectors that it will not be using will add to the cost of the fuel
and effectively put it in a position where it will be subsidising its
competitors.
Bord Gáis also
argues that, as British prices ultimately set the cost of gas here, companies
such as Shannon LNG will charge that in any case and could make super-normal
profits at the expense of businesses and consumers. Shannon LNG denies this is
the case, and points out if it were to start selling gas in the Irish market,
to attract customers it would have to offer discounts to established players .
Bord Gáis Networks
built the interconnectors and operates and maintains them.
http://www.kerryman.ie/news/call-goes-out-for-show-of-support-for-lng-project-3041913.html
(Call goes out for show of support for LNG project – Kerryman March 7th
2012)
Call goes
out for show of support for LNG project
By DONAL NOLAN
Wednesday March 07 2012
THE ordinary people of
north Kerry and west Limerick must let their politicians know exactly how
strongly they feel about the future of the Shannon LNG project that is now in
danger of being abandoned because of years of bureaucratic delays and the
threat of a €65 million a year charge for operating in Ireland.
That's the message from the
Tarbert Development Association this week, who took part in a consultation
forum in Dublin
with the Commission for Energy Regulation (CER) on Thursday last.
Following the meeting,
Tarbert Development Association Secretary John Fox called on locals who want to
see the massive LNG project going ahead to keep pressure on the politicians of
the area, particularly government TDS, in the hopes of influencing a positive
outcome on the CER process that is now casting the project in doubt.
Minister Jimmy Deenihan
told The Kerryman this week that he is doing everything in his power to impress
on Taoiseach Enda Kenny and Energy Minister Pat Rabbitte how important the
project is for north Kerry and west Limerick.
He has also formally
written to Minister Rabbitte seeking clarification on whether or not the
Government can direct the CER on policy.
The CER told this paper
there is a legislative basis for the Government to do so. Minister Deenihan
said he is aware of the legislation providing for this and is seeking clarity
on it from Minister Rabbitte, who holds that there is no way the Government can
influence the CER, which is an independent body.
- DONAL NOLAN
http://www.examiner.ie/business/bord-gais-warns-of-higher-prices-186225.html
(Bord Gáis warns of
higher prices – Examiner March 7th 2012)
Bord
Gáis warns of higher prices
By Gordon Deegan
Wednesday, March
07, 2012
Bord Gáis Networks
yesterday warned of higher gas prices, totalling €40m per annum to consumers.
The company warned of the price hikes if changes
proposed to charges for the use of natural gas pipelines are not implemented.
Last month, the Commission for Energy Regulation proposed that suppliers pay
for Ireland’s
interconnectors, which supply 95% of the country’s gas, irrespective of whether
they use them.
This provoked an angry reaction from Shannon LNG, which is currently planning
to build a €600m liquid natural gas facility at Ballylongford, Co Kerry.
The construction of the facility is expected to bring 800 jobs — Shannon LNG
has already spent €40m to get the project to this stage and has secured
planning permission and obtained a foreshore licence.
However, a question now lies over the project with Shannon LNG chief executive
Paddy Power telling the February meeting of Kerry County Council that the
Commission decision could force the firm to pay €75m per annum to the State.
In a document responding to the proposal, Bord Gais Networks (BGN) states that
using the current tariff structure "means higher prices for Ireland’s
gas users".
Over 95% of Ireland’s gas
comes from Britain via two
pipelines, known as interconnector one and two, under the Irish
sea.
BGN state that the Commission proposal "puts the interests of consumers
ahead of all other stakeholders and identifies the requirements to address
network charges in order to avoid customers paying more for their gas".
BGN believes that the majority of the industry should be heard in the
Commission process on tariffs, "not just the interests of a developer who
has yet to commit to their investment".
The BGN document states that "the structure of network charges must change
to reduce risk of higher prices for all consumers and that windfall profits for
producers cannot be allowed while consumer prices rise".
BGN states that the determination of network charges must be addressed in order
to avoid customers paying more for their gas when Corrib and Shannon LNG flow.
Shannon LNG, which is backed by US
energy giant, Hess Corporation, has said it will not make a decision on
proceeding with the project until the regulator clarifies the charges issue.
The Commission is due to make its decision before the end of this month.
This appeared in the
printed version of the Irish Examiner Wednesday, March 07, 2012
Note
4. Dail Debates on the Issue:
http://www.kildarestreet.com/debates/?id=2012-02-22.522.0
Dáil debates
Wednesday, 22 February 2012
Topical Issue Debate
Shannon LNG Project
3:00 pm
Arthur Spring
(Kerry North-West
Limerick, Labour) Link to this
I thank the Ceann Comhairle for selecting this matter, the importance
of which is evident from the fact that four Deputies from County Kerry
have tabled it for topical issue debate.
I was angered by the decision of the Commission for Energy Regulation,
CER, to produce a report following a meeting in the Taoiseach’s office in the
week leading up to Christmas between the Taoiseach, the Minister for
Communications, Energy and Natural Resource, Deputy Rabbitte, the Minister for
Arts, Heritage and Gaeltacht Affairs, Deputy Deenihan and myself and Shannon
LNG at which there was a lengthy discussion on what further steps could be
taken to resolve this matter. Two solutions were identified, including that the
parties could sit down at a table and try to come up with a solution and
investigation of whether the complaint made to the EU Commission could be
suspended until such time as a consultation process had been concluded.
Unfortunately, neither happened.
The report issued last week by the CER ultimately determines the
framework upon which all further decisions on whether this project will go
ahead will be made. I come from a county and constituency which has enormous
unemployment. There has been much talk about export growth. This project could
result in more than $1 billion being brought into the country and the creation
of approximately 700 jobs. The McCarthy report, often condemned in this House,
states that this would provide fuel security. It further states that if we
increase the supply of energy to the country it should be possible to lower the
price. I acknowledge the interconnector between Ireland
and the UK,
which supplies 95% of our gas at a cost of €50 million per annum.
None of the solutions put forward suggest to me that this matter will
be resolved soon. This issue needs to be addressed in an open and transparent
manner. The date of 17 March was set as the deadline for finalisation of talks
on this matter. It is imperative that the regulator is brought before a
committee of the Oireachtas to explain why he produced a report which prefixes
a framework that could ultimately prevent this project going ahead. It is
essential that this matter is given urgent consideration as it could benefit
north Kerry, the county and the country.
Brendan Griffin
(Kerry South, Fine
Gael) Link to this
I agree entirely with the points made by my colleague, Deputy Spring.
The raising of this important matter by four Deputies who represent County Kerry
demonstrates how critical it is. The bottom line is that jobs are at stake. A
fantastic announcement was made yesterday on the creation of 1,000 jobs in County Louth
through the establishment of PayPal. This project is its north Kerry
equivalent. A total of 650 construction jobs are associated with the project
and there would be a further 100 permanent jobs were it to proceed. Millions of
euro have already been invested in it and if it gets the go-ahead, up to €1
billion will be invested in the north Kerry economy. It is a no-brainer and
everything possible must be done to ensure it goes ahead. I call on the
Minister to take action and do everything in his power to ensure these jobs are
created. I emphasise that he must do everything in his power because one of the
major barriers to the project has been the lack of regulatory certainty, which
he can provide.
As a Deputy representing County
Kerry, I would be ashamed
if the project were not to proceed. Moreover, Members are not prepared to stand
by and let it slip through their fingers because it is too important for those
awaiting jobs who perceive it as a ray of hope. Some 17,500 people are on the
live register in the county and the project would help to reduce that number
considerably. It would alo provide a stimulus for the entire economy of north
Kerry and west Limerick. The Minister must,
therefore, step up to the mark and do what he can to ensure the project gets
the go-ahead and deliver a good news story for County Kerry.
Martin Ferris
(Kerry North-West
Limerick, Sinn Fein) Link to this
In conjunction with my colleagues from County Kerry,
I have brought this brought to the Minister’s attention in the hope he can
resolve the outstanding matters. As Deputies Spring and Griffin have stated, the project involves
approximately 750 jobs, of which 650 would be created in the construction
phase. A further 100 permanent jobs would be created thereafter.
Last Friday the Commission for Energy Regulation, CER, published a
draft recommendation on tariffs for gas interconnectors which would apply to
companies such as Shannon LNG which states it will not use them. A public
consultation process is ongoing and at last Monday’s meeting of Kerry County
Council Mr. Paddy Power of Shannon LNG told the council that the move
constituted a fundamental change in Government policy. He stated it was akin to
turning up at a football match only to be told one would be playing a game of
hurling. This issue must be resolved. I suggest both the Minister and the
Taoiseach meet all Deputies from the county as soon as possible. County Kerry
is one of the country’s black spots; the North Kerry constituency has an
unemployment rate of more than 26%. Consequently, it is in urgent need of an
input to try to create jobs as young people are being lost on a daily basis.
Current developments at Tarbert and Ballylongford are matters that can be
resolved politically by a change of policy, if that is what it takes, to ensure
jobs are attracted to that part of the county.
I reiterate that I will work with my fellow Deputies, all of whom are
wearing the Kerry jersey in this instance and the Irish jersey in respect of
job creation. It is essential that this matter be sorted out and if that
requires the banging together of heads around the table, so be it. However, matters
must not be allowed to continue as they are. The issue is limping on from week
to week and there is no light at the end of the tunnel, only speculation.
Consequently, the matter must be resolved. Were Members to work together
politically, this could be done. I again express my hope the Minister can
arrange an urgent meeting with the Deputies from the constituency, as well as
the Senators from County
Kerry.
Tom Fleming (Kerry South, Independent) Link to this
This matter pertains to the huge investment proposed in the project
mentioned - €600 million in the terminal and €400 million in the power plant.
At a time when we are trying to entice investment from throughout the world, it
is mind-boggling that we are looking at a gift horse in the mouth and shying
away from it in the form of this €1 billion investment. As the other Deputies
noted, the south-west corner of Ireland
has been devastated by unemployment. It certainly is a black spot that has been
overlooked in many respects during the years by IDA Ireland in the main, as
well as by the other job creation agencies.
The saga of the Shannon and Tarbert land bank is ongoing and there
have been many false dawns. Several projects were proposed, but they fell apart
and nothing of significance has taken place. The project mentioned is the most
feasible that has been put forward to date. What is ironic is that the
Government set out the rules in 2001, following a debate at the Cabinet, to
comply with European Union gas directives and encourage new and secure sources
of gas supplies in a free and open market with no obstacles attached.
Subsequently, however, the Commission for Energy Regulation made proposals that
would result in a substantial proportion of the interconnection charges imposed
on the direction of the energy regulator being levied on gas suppliers. Consequently,
suppliers such as Shannon LNG, Corrib and Kinsale Gas were greatly affected.
The Tarbert project certainly would take the main hit in this regard because
the other probably have been exhausted. Moreover, when reviewing the proposals
made by the Commission for Energy Regulation, the economist Colm McCarthy
concluded that they were not consistent with its cost-reducing remit on energy
policy. In other words, this meant they were bad for the householder, the
consumer and business in general. The Minister should intervene in this regard.
He has the power to so do and could issue a Government policy directive to turn
things around and rescue the project because otherwise it will be lost.
4:00 pm
Pat Rabbitte
(Minister, Department
of Communications, Energy and Natural Resources; Dublin South West, Labour) Link to this
I thank the four Deputies for again giving me the opportunity to
address Members of the House on this important issue. I have consistently
welcomed the proposal by Shannon LNG to construct a liquefied natural gas, LNG,
terminal near Ballylongford, County
Kerry. Such a facility,
together with the bringing onshore of Corrib gas, would provide important
additional security in providing a gas supply for Ireland. I met the promoters of the
project soon after taking office last year and both my Department and the
Commission for Energy Regulation are in regular contact with Shannon LNG. Most
recently, the Taoiseach, the Minister for Arts, Heritage and Gaeltacht Affairs,
Deputy Deenihan, Deputy Spring and I met its representatives on 21 December.
The meeting offered a timely opportunity to review the state of play on the
project and underline the Government’s positive interest in the potential
investment.
The meeting also discussed the central concern of Shannon LNG, to
obtain regulatory certainty at the earliest opportunity on future pricing and
the treatment of Ireland’s
two gas interconnectors. Together with all players and potential players in Ireland’s gas
market, Shannon LNG has a key commercial interest in the outcome of the
regulator’s ultimate decision on this highly complex regulatory question and
given the complexities involved, there are many perspectives on what the
decision should be. The regulator has been engaged in an extensive consultation
process on the matter for the last few months and has had considerable
interaction with Shannon LNG, as well as with all key stakeholders.
In line with the stated need for all interested parties, including
Shannon LNG, to have clarity and certainty on the future regulatory regime as
soon as possible, the regulator originally had signalled it would come to a
decision last autumn. Unfortunately, the process was delayed by Shannon LNG’s
own decision to lodge a number of complaints with the European Commission.
This further delay in the process was discussed with Shannon LNG at
the meeting on 21 December, as was Shannon LNG’s own particular perspective on
the regulatory issues for decision by CER.
Decisions on the regulatory treatment of the gas interconnectors and
tariffing are statutorily a matter for the CER under the Gas (Interim)
(Regulation) Act 2002. I have no function in the matter. As the independent
energy regulator, the CER has a remit to protect energy consumers, to ensure
security of supply and to support competitiveness. It also has a duty to ensure
that new sources of gas for the Irish market do not result in unwarranted
increases in the price of gas to business and domestic consumers.
I understand that on 17 February, the CER published a proposed
decision paper - its normal way of going about something like this - on the
regulatory treatment of the gas interconnectors. The regulator has announced
that it intends to hold one further public forum for stakeholders on 1 March.
Given the multiplicity of perspectives on the matter, I am sure all
stakeholders, including Shannon LNG, will welcome such a forum. In tandem,
stakeholders have the opportunity to respond to the regulator by 16 March on
the matters raised in the proposed decision paper. At the end of this period, the
regulator will assess all comments received and publish a final decision. I
understand the regulator expects a final decision to be available by end April.
I would hope the regulator will improve on that date. The regulator’s final
decision will bring the regulatory certainty which Shannon LNG has repeatedly
sought.
Brendan Griffin
(Kerry South, Fine
Gael) Link to this
I thank the Minister for his reply. I acknowledge that the forum on 1
March will be welcomed by Shannon LNG. However, the mantra of this Government
for the past 12 months is that we want to create jobs for our people and that
we want to do everything in our power to make sure we reduce the unacceptable
number of more than 400,000 people on the live register. Quite frankly, there
needs to be greater intervention by the Minister in this matter. I do not feel
it is good enough for him to come in here and tell us this is a matter for the
energy regulator. He needs to directly intervene in this and guarantee these
jobs for north Kerry.
This is a crucial matter for us. We need certainty as does the
company. Our international reputation is at stake. When a company has expressed
so much interest in our country and has already invested so much money, the
Government needs to welcome that interest and show of solidarity with the Irish
people. That is what I am asking the Minister to do.
An increased supply on the market surely should be good for
competition rather than bad for competition. That is something that should be
borne in mind.
Martin Ferris
(Kerry North-West
Limerick, Sinn Fein) Link to this
I thank the Minister for his detailed response, but we have gone no
further. There is an impasse here and we have to find a way to break it. The
Minister mentioned Shannon LNG’s own decision to lodge a number of complaints
with the European Commission. As I read the rest of his speech, that is not the
reason for holding things up. The proposal to have an opportunity to respond to
the CER by 16 March is in the proposed decision paper.
If the political will exists - there is collective political will from
all parties in respect of job creation and from a parochial point of view in
trying to get jobs into Kerry - this must be overcome. Both the Minister and
the Taoiseach have a role to play in this. Much was said at that meeting last
Monday. I referred to a €75 million tariff. Is that true or is it just wild
speculation? If that is the case, it will ensure it effectively will not
happen.
Tom Fleming (Kerry South, Independent) Link to this
I am in agreement with the Deputies. There is an essential need for
the Government to intervene. I cannot see anything positive coming out of the
process here, whereby stakeholders will make further submissions by 1 March. We
are going around the house and back to square one again. The importance of this
cannot be over-emphasised. We are being told on a weekly basis about our high
energy costs for attracting industry and maintaining businesses. Our
electricity costs are enormously high even to the householder when compared to
the European average.
Perhaps we need to look at EU legislation and regulations. We need to
circumvent this in some way, and that is what government is for. We are here as
elected representatives for our county, and this is one of the most essential
matters that has come before the House in the past 12 months. We should examine
every avenue possible to find ways and means to overcome the impasse. There is
a huge responsibility on all of us to reach a resolution as soon as possible.
Time is of the essence and I ask the Minister and the Government to examine
this.
Pat Rabbitte
(Minister, Department
of Communications, Energy and Natural Resources; Dublin South West, Labour) Link to this
I thank the Deputies and I share their concern to grow employment in
Kerry. However, Deputy Griffin is essentially asking me to ignore the statute,
and the other Deputies seem to concur. Perhaps the House should take greater
care when passing a law like this, but the House passed the law and Deputy
Griffin is asking me to break the law. I cannot do that, but within the
constraints imposed on me by the law, I have done everything that is humanly
possible to mediate the earliest possible outcome to this issue. We would have
had an outcome, as promised by the regulator, last autumn. However, for reasons
that it explained at our meeting on 21 December, the company decided to appeal
to Europe against a decision that was not yet
made and as a result, disabled the issuing of a decision last autumn.
At our meeting on 21 December, the Taoiseach, the Minister for Arts,
Heritage and the Gaeltacht and Deputy Spring met with the promoters and the
American representative. They asked for a forum and they are getting a forum.
It is normal practice for the regulator to publish this kind of paper in
advance. Let the stakeholders go along to that forum for however long it lasts
and let them effect the changes that are deemed sensible.
Under the regulatory regime, once utilisation of the interconnector
decreases due to new sources of supply, the price per unit of gas transported
through the interconnector will increase. Therefore, in addition to its
consumer protection remit, the regulator also has a competitiveness and a
security of supply remit. Whatever regime is put in place for the
interconnectors, it is important for all stakeholders that it should be fit for
purpose. In other words, there was a huge investment by the State in the
interconnectors between here and the neighbouring island. We cannot strand
those assets. They have to be remunerated. The final sentence of the executive
summary to the paper published by the regulator reads:
The CER has concluded that the
current regulatory treatment of the BGE gas interconnectors with GB will no
longer be fit for purpose when new sources of gas come on stream. [It is
referring to the Corrib and to the LNG project in this regard] If the system is
unchanged, it will result in significantly higher gas tariffs to all gas
customers, and will distort efficient economic signals for the future use of
the transmission system.
It is the job of the CER to address such issues. It is the task of LNG
and other interested parties to attend the forum and influence the ultimate
decision. The CER has produced a draft decision, that is all.
I understand the concern that exists in Kerry with regard to jobs.
Interest in this issue is whipped up every so often. I assure the Deputies that
there is no lack of engagement in respect of this matter. I have pushed the law
to the boundaries. The Minister for Arts, Heritage and Gaeltacht Affairs,
Deputy Deenihan, and Deputies Spring, Griffin,
Martin Ferris and Tom Fleming are all interested in this matter. I understand
that but I am constrained with regard to how far I can go. I hope that on this
occasion the regulator will be permitted to do its job and bring the issue to
finality.
Written answers Wednesday, 7 March 2012
Department of Communications, Energy and Natural
Resources
Natural Gas Grid
6:00 pm
Brendan Griffin
(Kerry South, Fine
Gael)
Question 135: To ask
the Minister for Communications, Energy and Natural Resources if he will apply
ministerial direction to a matter (details
supplied); and if he will make a statement on the matter. [13016/12]
Pat Rabbitte
(Minister, Department
of Communications, Energy and Natural Resources; Dublin South West, Labour)
I refer the Deputy to previous replies to Parliamentary Questions on
this matter. The decision on the regulatory treatment of the gas
interconnectors is statutorily a matter for the Commission for Energy Regulation
(CER) under the Gas (Interim) (Regulation) Act 2002. I have no function in the
matter. The CER, as the independent energy regulator has a remit to protect
energy consumers, ensure security of supply and support competitiveness. In
particular it must ensure that new sources of gas for the Irish market do not
result in unwarranted increases in the price of gas to business and domestic
consumers.
There have been requests, from Shannon LNG and others, to me as
Minister for Communications, Energy and Natural Resources to issue a policy
direction to the CER in accordance with powers of direction as provided under
Section 10A of the Electricity Regulation Act 1999. The content of such a
policy direction has not been specified by the advocates but it appears the intention
is that a Ministerial direction could be used to intervene to influence CER’s
decision making about the regulatory treatment of the gas interconnectors, in
particular with reference to the imposition of a tariff on this project, on the
basis that Shannon LNG alleges that the decision is, in their view, set to
damage its future business.
The 2002 Act confers specific legislative powers on the CER to
regulate and determine the tariffs applicable to the gas transmission system.
By law, the CER makes decisions pursuant to these powers independently of the
Minister. These laws reflect the policy that determining tariffs is not a
matter for the Minister.
Furthermore, Section 10A of the 1999 Act does not provide an adequate
legal basis for a direction sought by and for the benefit of a private entity.
The section provides that the Minister may only give directions on ’general
policy’ as opposed to a specific direction in respect of the making of a
particular decision by the regulator. Section 10A (6) (c) of the 1999 Act
explicitly prohibits the Minister from giving a direction in respect of the
performance of the functions of the CER ’in relation to individual energy
undertakings or persons’.
I am satisfied that any general policy direction I might make would
have to operate in what I consider to be in the overall public interest and
could not be framed so as to either assist or hinder a particular stakeholder
or otherwise so as to undermine the regulatory system. In the absence of any
change in policy in respect of the regulation of gas tariffs, which I do not
contemplate, and because of the limitations set out in the governing
legislation surrounding the exercise of this power, I do not envisage making a
Ministerial policy direction as sought by and on behalf of the company.
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