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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Vote Provision.

Cork gas prices after subsidy removal

Summary

Barry asked whether ending Cork Gas Company’s subsidy meant it would receive natural gas below the oil-equivalent price. Colley said gas would generally be supplied at an energy-related, competitive price and that removing the subsidy would not raise Cork prices and could reduce them.

Peter Barry Mr. P. Barry Fine Gael

The subsidy to Cork Gas Company has now been stopped. Does that mean that the price for natural gas being charged to the Cork Gas Company is less than the market price?

Comment on this

To which market price is the Deputy referring?

Comment on this
Peter Barry Mr. P. Barry Fine Gael

The oil equivalent price. I understood the Minister to say some months ago that the policy of An Bord Gáis would be to supply gas at the going rate except where contracts were already signed.

Comment on this

Broadly speaking that is correct.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Does that mean, now that the subsidy is removed, that Cork Gas Company are going to be supplied below that rate?

Comment on this

The intention generally in regard to natural gas is that it will be supplied, as the Deputy said, at an energy related price, but it would also be, broadly speaking, competitive with gas oil prices. The Deputy may be assured that the reduction in the subsidy because it will not be paid in future to Cork Gas Company does not mean an increase in the price of gas in Cork. On the contrary, it could well mean a reduction.

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