13.07.2015 Views

45126-Invest. Qual-No111

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<strong>Invest</strong>ment in <strong>Qual</strong>itycapacity in the natural gas system to enable reasonable expectationsof demand to be met” and “to secure the continuity, security andquality of supplies of natural gas” (S.8 (g) and (h).) In this vein theCouncil also welcomes the means to fulfil this obligation asprovided for in the Gas (Interim) (Regulation) Act, 2002 wherebythe CER at its own behest, or at the request of the Minister, mayconduct a competitive process for construction of a pipeline.Indeed, there may be wider institutional implications for ensuringinfrastructure delivery in key sectors, which are discussed below.9.5.2 Locational Charging and EnergyIt is a fair and reasonable first principle that people should pay thecosts which they impose upon society, whether that be in terms ofcongestion, loss of environmental amenity or the incremental costof providing infrastructure. However, access to high quality andaffordable basic services, where appropriate on a universal basis, isalso a key objective not only of social policy but also in supportingspatial balance. In that sense, the Council supports the provision ofPublic Service or Universal Service Obligations upon all producersof essential services. There are, of course, differences between thesupply of electricity and postal charges, which are subject touniversality, and the supply of piped gas by Bord Gáis Éireann,which is subject to a purely commercial mandate given the moreready availability of substitutes. Despite the need to support theseobjectives, the Council supports the introduction of locationalcharging for those actors whose locational decisions may beaffected by exposure to appropriate prices.In the case of electricity generators, it could therefore be argued thatthe move from the charging of all connection assets, which was costreflective, to purely local ones, only partially cost reflective, isretrograde in nature, but that an on-going locational chargingsystem 7 can contribute to the development of only the necessarylevel of transmission infrastructure in Ireland, paid for by those whoutilise it. This location-based charging for producers, while7. This system is nodal in nature and premised on the reverse MW mile principle.For further details see www.eirgrid.com472

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