Legislation

Legislation

The Commission for Energy Regulation (CER) is a statutorily independent body, the functions of which are set down in both primary and secondary legislation.

Given its responsibilities for:

1. the Corporate Governance of the CER;
2. the development and implementation of policy with regard to the regulation of energy markets and security of energy supply; and
3. the negotiation and transposition into Irish law of EU Directives and Regulations affecting 2. above,

Electricity / Gas Regulation Division has a direct involvement in the drafting and implementation of legislation allocating functions to the CER. The most recent example of this is the Energy (Miscellaneous Provisions) Act 2006.

For details of Statutory Instruments signed into law by the CER in accordance with its statutory functions, please refer to the CER’s website www.cer.ie.

• Electricity Regulation Act 1999

  Establishes the Commission for Electricity Regulation (the precursor to the CER);
• Gives the Commission the power to grant licences to generate and supply electricity;
• Gives the Commission the power to grant authorisations for the construction of generating stations; and
• Provides for the access to the transmission or distribution system by licence holders, holders of authorisations and eligible customers.

• Gas (Interim)(Regulation) Act 2002

  Provides for the regulation of the gas sector by the CER;
• Provides for the transfer of certain functions of the Minister for Public Enterprise to the CER;
• Provides for the change of name of the Commission for Electricity Regulation to the Commission for Energy Regulation.

• Planning and Development (Strategic Infrastructure) Act 2006

  Provides for consultation of the CER by An Bord Pleanála with regard to new planning consent procedures for certain strategic infrastructure (‘strategic’ downstream gas pipelines).

(Note: This Act was sponsored in the Houses of the Oireachtas by the Department of the Environment, Heritage and Local Government)

Energy (Miscellaneous Provisions) Act 2006

• Provides for the regulation of the activities of registered electrical contractors and gas installers by the CER ;
• Provides for full gas market opening by 1 July 2007 (the date specified by the EU Commission;
• Provides for the appointment of a shipper and a supplier of last resort by the CER;
• Provides for the issuing of policy directions to the CER by the Minister with regard to they carrying out of its functions;
• Provides for certain emergency measures to be taken (at the direction of the Minister to the CER / other specified persons) in the event of a sudden crisis (e.g. physical safety or security of persons or installations, or of the transmission system).

Electricity Regulation (Amendment)(Single Electricity Market) Act 2007

• Provides for the establishment of a single competitive wholesale electricity market on the Island of Ireland and its Islands.
• Allocates certain functions to the CER to establish and facilitate the operation of the Single Electricity Market in the State.

(Note: This Act was sponsored in both Houses of the Oireachtas by Electricity (Corporate) and North-South Energy Division)

Statutory Instruments and EU Legislation

Due to the wide range of Statutory Instruments and EU Legislation related to regulation of the electricity and gas market and security of supply, and to aid those interested in or researching this area, the following legislation has been separated into broad categories or headings. These are Commencement Orders, Energy Markets, Licensing and Consent Procedures, Security of Supply and Public Service Obligations.

For details of Statutory Instruments signed into law by the CER in accordance with its statutory functions, please refer to the CER’s website www.cer.ie.

Commencement Orders

S.I. No. 146 of 2002 - Gas (Interim)(Regulation) Act 2002 (Appointed Day) Order 2002

This Order appoints 30 April, 2002 as the appointed day for the purposes of the Gas (Interim) (Regulation) Act, 2002 (No. 10 of 2002) .

S.I. No. 214 of 1999 - Electricity Regulation Act 1999 (Establishment Day) Order 1999

This Order appoints 14 July, 1999, to be the establishment day for the purposes of section 8 of the Electricity Regulation Act, 1999 . On that day there shall stand established the Commission for Electricity Regulation, to perform the functions conferred on it by the Electricity Regulation Act, 1999.

S.I. No. 213 of 1999 - Electricity Regulation Act 1999 (Commencement) Order 1999

This Order brings into operation on 14th July, 1999, the provisions of the Electricity Regulation Act, 1999.

S.I. No 266 of 2007

This Order brings into operation on 23 May, 2007, Section 8 of the Energy (Miscellaneous Provisions) Act 2006, dealing with electricity interconnectors.

S.I. No. 292 of 2007

This Order brings into operation on 1 July, 2007, Section 19 of the Energy (Miscellaneous Provisions) Act 2006, dealing with a gas shipper and supplier of last resort.

S.I. No 68 of 2008 Energy (Miscellaneous Provisions) Act 2006 (Commencement of Certain Provisions) Order 2008

This Order brings into operation on 12 March 2008, sections 4,11 and 12 and the majority of section 13 of the Energy (Miscellaneous Provisions) Act 2006, for the purpose of assigning responsibility for the regulation of electrical contractors, gas installers and gas undertakings with respect to safety and related matters to the Commission for Energy Regulation. 


Energy Markets

Electricity

S.I. No 280 of 2008  - European Communities (Internal Market in Electricity) (Electricity Supply Board) Regulations 2008

These Regulations give further legal effect to Directive 2003/54/EC of the European Parliament and of the Council of the 26 June 2003, concerning common rules for the internal market in electricity and repealing Directive 96/92/EC, by providing for the legal unbundling of the distribution system operations of ESB. 

S.I. No. 524 of 2006 - European Communities (Internal Market in Electricity) Regulations 2006

These Regulations give further legal effect to Directive No. 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC. The purpose of these Regulations is to provide clarity and consistency as to those decisions of the CER that may be appealed to an Appeals Panel.

S.I. No. 287 of 2005 - European Communities (Cross Border Electricity Network Access) Regulations 2005

These Regulations give legal effect to Article 12 of Regulation (EC) No. 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity by providing for penalties applicable to infringements of the provisions of the afore-mentioned EC Regulation.

S.I. No. 60 of 2005 - European Communities (Internal Market in Electricity) Regulations 2005

These Regulations give further legal effect to Directive No. 2003/54/EC of the European Parliament and of the Council of 26th June 2003, concerning common rules for the internal market in electricity and repealing Directive 96/92/EC, not already implemented by the Electricity Regulation Act 1999 and the European Communities (Internal Market in Electricity) Regulations 2000. These Regulations provide, inter alia, for the strengthening of independent regulation, better levels of consumer protection, the licensing of a Public Electricity Supplier, the designation of a Supplier of Last Resort, the enhancing of security of supply provisions and other matters.

Directive 2003/96/EC of the European Parliament and of the Council of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity.

Regulation 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity.

Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003, concerning common rules for the internal market in electricity and repealing Directive 96/92/EC.

S.I. No. 632 of 2003 - Electricity Regulation Act 1999 (Eligible Customer)(Consumption of Electricity) Order 2003

This Order varies the consumption threshold for eligible electricity customers in Section 27(2) of the Electricity Regulation Act 1999 (as varied by the Electricity Regulation Act 1999 (Eligible Customer) Order 2002). By varying the eligibility threshold from “1 Giga Watt hour” to “0.1 Giga Watt hour”, it provides for an increase in the level of electricity market opening to approximately 56% with effect from 19 February 2004.

S.I. No. 328 of 2003 - European Communities (Internal Market in Electricity)(Amendment) Regulations 2003

These Regulations give further legal effect to Directive No. 96/92/EC of the European Parliament and of the Council of 19th December 1996, concerning common rules for the internal market in electricity, by amending the European Communities (Internal Market in Electricity) Regulations 2000 ( S.I. No. 445 of 2000 ), to provide for the first Chief Executive of EirGrid to be appointed by the Directors of the company and to facilitate EirGrid becoming operational as Transmission System Operator.

S.I. No. 145 of 2002 European Communities (Internal Market in Electricity)(Amendment) Regulations 2002

These Regulations give further legal effect to Directive No. 96/92/EC of the European Parliament and of the Council of 19th December 1996, concerning common rules for the internal market in electricity, by amending the European Communities (Internal Market in Electricity) Regulations 2000 ( S.I. No. 445 of 2000 ), to provide that ESB shall make resources available to ESB National Grid Business Unit and to EirGrid until such time as the transfer scheme provided for by Regulation 13 of S.I. No. 445 of 2000 and the infrastructure agreement provided for by Regulation 18 of S.I. No. 445 of 2000 have been made.

S.I. No. 3 of 2002 - Electricity Regulation Act 1999 (Eligible Customer) Order 2002

This Order varies the consumption threshold for eligible electricity customers established under section 27(2) of the Electricity Regulation Act 1999. By varying the eligibility threshold from “4 Giga Watt hours” to “1 Giga Watt hour”, it provides for an increased level of electricity market opening to approximately 40% with effect from 19 February, 2002.

S.I. No. 445 of 2000 - European Communities (Internal Market in Electricity) Regulations 2000

These Regulations give legal effect to Directive No. 96/92/EC of the European Parliament and of the Council of 19th December 1996, concerning common rules for the internal market in electricity, not already implemented by the Electricity Regulation Act, 1999, by providing for the designation of a Transmission System Operator, the designation of a Distribution System Operator, and the unbundling of the accounts of electricity undertakings, and other matters.

S.I. No. 49 of 2000 - Electricity Regulation Act 1999 (Trading Arrangements in Electricity) Regulations 2000

This regulation, made with the consent of the Minister for Public Enterprise, establishes a system of trading in electricity, having taken into account the matters raised in the public consultation process carried out under section 9(1)(b) of the Act.

(This Statutory Instrument was drafted by the CER)

Gas

S.I. 239 of 2008 - European Communities (Internal Market in Natural Gas) (BGÉ) (Amendment) Regulations 2008

These Regulations amend Regulation 10 of the European Communities (Internal Market in Natural Gas) (BGÉ) Regulations 2005 (S.I. 760 of 2005) by providing that the Minister for Communications, Energy and Natural Resources may publish a notice in Iris Oifigiuil setting a transfer date for the Transfer Plan between BGÉ and Gaslink to be implemented. 


S.I. 760 of 2005 - European Communities (Internal Market in Natural Gas)(BGÉ) Regulations 2005

These Regulations give further legal effect to Directive 2003/55/EC of the European Parliament and of the Council of the 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC, by providing for the legal unbundling of the Transmission Systems and Distribution Systems operations of Bord Gáis Éireann.

S.I. 377 of 2007  - Amending Order to S.I. 760 of 2005/EC

These Regulations amend the European Communities (Internal Market in Natural Gas)(BGÉ) Regulations 2005 (S.I. No. 760 of 2005) so as to give further legal effect to Directive 2003/55/EC of the European Parliament and of the Council of the 26 June 2003 concerning common rules for the internal market in natural gas by further clarifying the arrangements for unbundling the transmission systems and distribution systems currently operated by Bord Gáis Éireann.

Regulation 1775/2005 of the European Parliament and of the Council on conditions for access to the Natural Gas Transmission Network.

These Regulations transpose the non-discretionary provisions of Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC relating to, inter alia, consumer protection, natural gas licences, accounting procedures and the functions of the independent regulator.

S.I. No. 426 of 2004 - European Communities (Internal Market in Natural Gas) Regulations 2004

These Regulations give legal effect to Article 23.1(b) of Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC by opening the gas market for all non-domestic users from 1 July 2004.

Directive 2003/55/EC of the European Parliament and of the Council of the 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC.

S.I. No. 545 of 2002 - Gas Act 1976 (Section 10A(1)(e))(Annual Rate of Consumption) Regulations 2002

This Order amends section 10A of the Gas Act 1976, which was previously amended by Section 14 of the Gas (Interim)(Regulation) Act, 2002. The amendment reduces the consumption threshold for third party access from 2,000,000 to 500,000 standard cubic metres per annum.

Licensing and Consent Procedures

S.I. No. 265 of 2002 - Gas (Interim)(Regulation) Act 2002 (Criteria for Determination of Applications for Natural Gas Licences) Regulations 2002

These regulations set out the criteria in accordance with an application for a natural gas licence may be determined by the Commission for Energy Regulation.

S.I. No. 264 of 2002 - Gas (Interim)(Regulation) Act 2002 (Criteria for Determination of Consents) Regulations 2002

These regulations set out the criteria in accordance with an application for consent to construct or upgrade a pipeline may be determined by the Commission for Energy Regulation.

S.I. No. 309 of 1999 - Electricity Regulation Act 1999 (Criteria for Determination of Authorisations) Order 1999

This order sets out the criteria in accordance with which an application for an authorisation to construct or reconstruct a generating station may be determined by the Commission for Electricity Regulation.

Security of Supply

Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006 concerning measures to safeguard security of electricity supply and infrastructure development.

Directive 2004/67/EC of the European Parliament and of the Council of 26 April 2004 concerning measures to safeguard security of natural gas supply.

S.I 697 of 2007   European Communities (Security of Natural Gas Supply) Regulations 2007

These Regulations give effect to Directive 2004/64/EC of the European Parliament and Council of 26 April 2004 concerning measures to safeguard security of gas supply.


Public Service Obligations

S.I. No 582 of 2007 

This Order amends the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002, (S.I. No. 217 of 2002), so as to align the Public Service Obligation levy period with the new Single Electricity Market.

S.I. No 583 of 2007

This Order places a requirement on ESB to make payments in respect of 10 year electricity generation contracts awarded to Aughinish Alumina Ltd and Tynagh Energy Ltd on foot of the CER's Capacity 2005 Competition.  It provides for the compensation of ESB for the additional costs. if any, incurred in complying with these obligations.

S.I. No. 174 of 2004 - Electricity Regulation Act 1999 (Public Service Obligations)(Amendment) Order 2004

The Electricity Regulation Act 1999 (Public Service Obligations) Order 2002, ( S.I. No. 445 of 2000 ), provided for the imposition on ESB of public service obligations requiring ESB to purchase, up until 31 December 2019, the output of certain peat and renewable, sustainable or alternative electricity generating stations, in the interests of security of supply and environmental protection respectively and provided for the introduction of a public service obligation (PSO) levy mechanism from 1st January 2003 to compensate the ESB for the additional costs incurred.

The Order amends the aforesaid Order to impose a PSO on the ESB requiring it to purchase the output of additional renewable sustainable or alternative electricity generating stations in the interest of environmental protection and to provide for compensating it for the additional costs incurred.

This Order also amends the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002 ( S.I. No. 217 of 2002 ) to extend the closure date of the Shannonbridge, U1 station to 2004.

S.I. No. 614 of 2002 - Electricity Regulation Act 1999 (Public Service Obligations)(Amendment) Order 2002

The Electricity Regulation Act 1999 (Public Service Obligations) Order 2002, (SI No 445/00), provided for the imposition on ESB of public service obligations requiring ESB to purchase, up until 31 December 2019, the output of certain peat and renewable, sustainable or alternative electricity generating stations, in the interests of security of supply and environmental protection respectively and provided for the introduction of a PSO levy mechanism from 1^st January 2003 to compensate the ESB for the additional costs incurred.

This Order amends the aforesaid Order to impose a public service obligation (PSO) on the ESB requiring it to purchase the output of additional renewable sustainable or alternative electricity generating stations in the interest of environmental protection and to provide for compensating it for the additional costs incurred

S.I. No. 217 of 2002 - Electricity Regulation Act 1999 (Public Service Obligations) Order 2002

The Electricity Regulation Act 1999 (Public Service Obligations) Order 2002 (PSO Order) provides for the imposition on ESB of public service obligations which will require ESB to purchase, up until 31 December 2019, the output of certain peat and renewable, sustainable or alternative electricity generating stations, in the interests of security of supply and environmental protection respectively.

The PSO Order provides for the introduction of a PSO levy mechanism to compensate ESB for the additional costs incurred in complying with these public service obligations. The Order allocates the PSO levy among final customers of electricity on the basis of the maximum import capacity of 3 separate categories of electricity accounts. The PSO Order specifies the role of the CER and the collection and other duties of suppliers, the distribution system operator and the transmission system operator.

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