Energy ministers welcome new single electricity market

Energy Minister Nigel Dodds and the Minister of Communications, Energy and Natural Resources, Eamon Ryan TD welcomed the start of the Single Electricity Market today.

The Ministers were meeting for the first time to discuss how ongoing cooperation on energy issues can bring mutual economic and social benefits to both jurisdictions.

Speaking after the meeting in Newry, Minister Dodds said: “Over the last decade the European Union, in pushing for increased competition, has been a significant force in driving change in energy markets. Northern Ireland and the Irish Republic have taken the lead to create a competitive Single Electricity Market that will deliver mutual benefits to consumers. It is the first of its kind in Europe and it is the start of a staged process to deliver greater regional harmonisation, leading to a UK- Republic of Ireland – France regional market.”

Mr Dodds continued: “It does not make sense to operate small isolated markets when there are benefits to be gained from a single, larger market. I must congratulate the Regulators, the System Operators and the industry on delivering it so quickly.

“The new market will bring efficiency savings and enhance competition to help minimise the wholesale cost of electricity, with the vast bulk of the benefits going to the consumer.”

Eamon Ryan said: “The first day of operation of the Single Electricity Market marks an important step in the development of a competitive cross-border energy market. Full credit must go to the two Regulatory Authorities, the System Operators and all the market players for the way they have all worked together to reach this point.

“Together with the work underway to deliver enhanced electricity interconnection North /South and East/ West, the Single Electricity Market will deliver a major boost to ensuring the security, reliability and competitiveness of electricity supplies throughout the island.

“I am particularly pleased to welcome the completion of the All-island Grid Study which is ground-breaking research by international standards. The Study gives us cutting-edge information on what can be achieved in the area of renewable technologies by 2020 – and how to get there. Minister Dodds and I have agreed that we should publish the Study within the next few weeks and we have asked our officials to identify the follow-up work that will be needed to take this challenging agenda forward."

Both Ministers have acted to ensure that the Regulatory Committee which will regulate the new Market acts in the best interests of consumers and that it has a strong independent voice. Two senior European energy experts have been appointed onto the Committee; Professor Ignacio Perez will act as the independent member and Dr Jose Sierra will act as the deputy independent member.

Both Ministers agreed to meet again early in the New Year to explore the scope for further energy cooperation to bring mutual economic and social benefits. These will potentially include developing common arrangements for gas, sustainable energy initiatives including energy efficiency and renewable energy and security of supply for electricity and gas.

After the meeting Minister Dodds and Minister Ryan travelled to Armaghdown Creamery in Banbridge to mark the completion of the South/North gas pipeline.

Notes to Editors:

1. Publication of the All-Island Energy Market Development Framework in November 2004 was an important milestone towards cooperating on common energy concerns. It outlines collaboration on energy issues ranging from electricity, gas, sustainable energy, and emergency planning to research and development.
2. A joint ‘2020 Vision’ paper in 2005 on long term strategies for renewable electricity led to a joint electricity grid study. This identifies the potential for different renewable energy sources to contribute to electricity generation and the extent to which they could be accommodated in the two electricity transmission grids in the future on an all-island basis. It is due to be finalised shortly.
3. A SEM Committee has been legally established in each Regulatory Authority (NIAUR and CER) but it will have a common membership and operate as one committee. It has 3 members from the NI Authority for Utility Regulation (with one vote); 3 persons (with one vote) from the Irish Commission for Energy Regulation; and an independent member (with one vote). A deputy independent member has also been appointed to ensure there can always be continuity and a quorum. The NIAUR members are Alan Rainey, Board Member, Iain Osborne, Chief Executive and Board Member, Dermot MacCann, Director of Electricity. The CER members are Tom Reeves, Chairman and Commissioner, Michael Tutty, Commissioner plus a vacancy to be filled once a third Commissioner is appointed to the CER. The independent member is Professor Ignacio Perez, Comillas University Madrid. The deputy independent member is Dr Jose Sierra, Member of the Spanish National Energy Commission.
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