Price Control 5 (PC5) Gas Networks Ireland Consultation
CRU publishes PC5 Gas Networks Ireland Consultation
The PC5 Consultation Papers and supporting documentation can be found here.
We have published a consultation on the five-year revenue control which, following this consultation period and a final Decision, will set out the total allowed revenues that GNI can collect from October 2022 to September 2027. The consultation presents the outcome of a detailed review of GNI’s proposals for PC5.
The consultation proposes to allow GNI €2.23 billion in revenue under PC5 for the operation, maintenance and development of the natural gas transmission and distribution systems, to ensure a safe gas service and value for customers, while meeting its environmental obligations and its role in the energy transition.
The Irish energy system is entering a crucial period in its transition, tasked with achieving world leading decarbonisation targets and bolstering security of supply, whilst facilitating significant new energy demands. For the gas network to contribute to longer-term climate and sustainability goals, GNI needs to invest in critical network infrastructure and in support of more nascent technologies, with associated policy mechanisms, some of which are yet to be proven at scale.
To further ensure that GNI is facilitated and appropriately incentivised to meet the challenges and opportunities it will face during PC5, the CRU is also proposing a number of changes to the regulatory framework. These changes can be seen as an evolution of the existing regime in response to the changing energy environment faced by GNI at PC5.
The CRU is seeking comments from stakeholders on its proposals for an appropriate set of allowances and a regulatory framework which provides the necessary flexibility and incentives for GNI to respond to the dynamic and fast-moving energy landscape in the interest of current and future customers.
There are three key consultation documents which set out the proposals for GNI’s allowed revenue for the period 2022-2027:
- Transmission Network Revenue: The CRU currently proposes to allow circa €1.17bn to GNI for transmission (Tx) over the period of PC5.
- Distribution Network Revenue: The CRU currently proposes to allow circa €1.06bn to GNI for distribution (Dx) over the period of PC5.
- PC5 Regulatory Framework: The CRU is proposing several changes to the regulatory framework. This is to encourage and incentivise GNI to innovate and to demonstrate well planned, strategic, low carbon best practice behaviours, through a range of enhanced reporting, financial and reputational incentives.