The Commission for Regulation of Utilities (CRU) is responsible for electricity connection policy and the economic regulation of the electricity system operators ESB Networks and EirGrid. The CRU is an independent regulator and accountable to a Committee of the Oireachtas.
In line with its statutory obligations, the CRU reviews network operators’ investment plans and sets network charges annually to make sure they’re necessary, cost-effective, and will improve electricity services for customers. As such the Deputy may wish to engage with CRU directly via oireachtas@cru.ie.
Government is aware of the challenges of finding a balanced approach to facilitating additional demand by energy intensive industries while also ensuring the competitiveness, sustainability and security of supply of our energy system.
The Programme for Government commits to addressing these challenges through a range of policy and energy infrastructure planning workstreams which are being prioritised, including unprecedented investment in critical infrastructure and our electricity grid, with priority for renewables.
Furthermore, Government has published a comprehensive Large Energy User Action Plan (LEAP) with robust measures that will, inter alia, accelerate energy generation, connectivity, and planning processes which will guide the development of strategically significant, very energy intensive industries, in alignment with Ireland’s decarbonisation objectives and the growing of the knowledge-based economy. In particular, this will allow for greater co-location of energy-intensive sectors with the supply of renewable energy generation within green energy parks. It will unlock investment and innovation in Ireland’s renewable energy sector, including offshore wind, create positive spillovers, and maximise the wider benefits in jobs and skills across Ireland’s regions.
Among the 17 actions, it mandates CRU under Action 4, in-line with the National Energy Demand Strategy, to assess reforms and implement actions on network tariffs, day-ahead and inter-day wholesale market trading, grid code, storage and flexibility procurement (plus capacity markets if required), and set out a pathway to future implementation.
Energy intensive industries can already contract directly with energy suppliers for a variety of tariff options, including ones that are more closely linked to the half hourly wholesale price. Most energy intensive industries use CPPAs (Corporate Power Purchase Agreements) to capture the value of renewables in terms of lower costs. This is not a matter in which I, as Minister, play a role and my Department does not have any visibility on those individual contractual arrangements.