Ireland, UK face EU court on gas connect

 

Ireland and the United Kingdom are not fully in line with EU gas market rules, according to the EU Commission.

The Commission said it has decided to refer both States to the Court of Justice of the European Union to resolve the issue and force them to comply.

According to EU gas rules, the maximum interconnection capacity between Member States and between different gas transmission systems must be offered to the market so that consumers can fully benefit from competition on the market.

Only when interruptible reverse flow capacity and short-term services (short term contracts to book gas capacity) are offered, can pipelines be used to their maximum capacity, the Commission said.

This means that more gas can be transported and new companies can enter the market. This will give consumers the possibility to choose between different companies and services.

The maximum interconnection capacity is not offered in the UK and Ireland as the pipeline connecting Northern Ireland and Ireland is not open to the market, it said.

This means that gas companies in Ireland cannot directly trade gas with Northern Ireland or vice versa. On the pipeline connecting Scotland to Northern Ireland, short-term services are not available and neither is virtual reverse flow capacity based on netting off physical forward flow to make capacity available for commercial trade as required by EU longstanding legislation.

The Commission stated - "The Commission is aware that the UK and Irish governments intend to introduce Common Arrangements for Gas (CAG) between Ireland and Northern Ireland. While the Commission welcomes such steps to create cross-border market, this project has already been delayed. Therefore, the Commission has decided to proceed with these infringement procedures in accordance with the EU law."