Government Energy Regulator confirms Shell Rip Off Deal

mayo | environment | news report

Tuesday September 30, 2008 21:04

by Full Irish

Gas supply security not an issue, and price will be set by Shell, says Commission for Energy Regulation

Just in case you thought all the talk about the Great Gas Rip Off ® was lefty treehugger claptrap ®, it was confirmed today by no less a personage than the government's own energy watchdog, who turns out to be highly-paid civil servant called Dermot Nolan.

He works for a shower called the Commission for Energy Regulation (CER) , and he told the Oireachtas Energy Committee today that as far as the Irish consumer is concerned, the gas from the Corrib field may as well be coming from Outer Mongolia (he didn't use those exact words).

Minister fo Natual Resources Eamon Ryan will be weighing up evidence carefully before he gives Shell his full backing and support

He said something about the Shell scheme, if it ever gets done, adding to Ireland's energy security, but he made plain the fact that the gas from Corrib no longer belongs to the people of Ireland, and Shell can charge what they like.

He said "Corrib will improve the security of supply but it won't have any particular affect on price, because the international price of gas will determine that."

He reckons gas consumers in Ireland can expect more price increases in the New Year despite the recent fall-off in global fuel costs.

Security of supply depends, it seems, on willingness to pay whatever "the international price of gas" is. Mr Nolan didn't dwell on what would happen if the price that Shell could get in a foreign market couldn't be matched by Bord Gais.

Separately, the question of what threats actually exist to Irish security of supply was addressed by a spokesman for the CER earlier this week. It seems that even without Corrib gas, there is only a very slim possibility that gas supplies could ever be interrupted:

"In the extremely unlikely scenario of the coldest day in the coldest year for 50 years, and even then for a very short space of time (an hour at peak time) is there the potential for a very slight shortfall between supply and demand," a spokesman told the Sunday Tribune newspaper.

This didn't stop the Tribune from making the headline something like Ireland Faces Power Cuts Because of Shell to Sea Terror! (again, those may not be the exact words)

So to sum up, the Commission for Energy Regulation has this week said that
1, There is no particular issue around security of supply facing Ireland, and 2, Corrib won't make a difference to price, but it will help with the (non)issue of security of supply.

The Commission for Energy Regulation describes its remit as follows-

"In a world where energy supply and prices are highly volatile, the mission of the CER acting in the interests of consumers is to ensure that:

* the lights stay on;
* the gas continues to flow;
* the prices charged are fair and reasonable;
* the environment is protected, and
* electricity and gas are supplied safely"

So far the Shell scheme in Mayo is not living up to the last two for sure, but who knows, by the time this is over Shell may be able to claim they broke five out of five.

http://www.cer.ie/en/gas-capacity-statement.aspx

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Comments (5 of 5)

No to ESB & Bord Gais Price Hikes

by SP - SP

Wed Oct 01, 2008 10:39

info at socialistparty dot net

01-6772592

Here are some interesting figures and info on the Bord Gais price hikes, from a recent Socialist Party leaflet. Full leaflet attached:

"Energy prices are out of control. Gas & ESB prices have increased by 20% and 17.5% respectively in the last weeks and now there are plans to raise them by a further 20% and 13% in January.

At the same time workers are being asked to accept a 3 to 11 month pay freeze – a de facto pay cut. For many hard-pressed families, these price increases mean this winter will be the coldest ever.

These price hikes are completely unjustified. Both ESB and Bord Gais are hugely profitable, with profits up a shocking 29% and 85% in one year. These price hikes are being done purely to defend profits, and prepare the companies for privatisation. These hikes were given the go ahead by the energy regulator. This is answerable to the government - they have the power to overturn these price hikes.

But the government parties and the opposition have no problem with these hikes. They are all supporters of the ‘free market’ and are in favour of profiteering and privatisation. They will need to be forced to act by mass protests. The ESB & Bord Gais need to be brought under democratic control by workers and consumers."

PDF of the leaflet 0.11 Mb

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Government Energy Regulator confirms Shell Rip Off Deal

Comments (5 of 5)