Commission for Energy Regulation
The Commission for Energy Regulation (CER) is the independent body responsible for overseeing the liberalisation of Ireland's energy sector. The CER was initially established and granted regulatory powers over the electricity market under the Electricity Regulation Act, 1999. The Gas (Interim) (Regulation) Act, 2002 expanded the CER’s jurisdiction to include regulation of the natural gas market. The Energy (Miscellaneous Provisions) Act 2006, which was signed into law in December 2006, extends the statutory responsibilities of the CER with regard to gas and electrical safety.
The CER’s mission statement is as follows:
In a world where energy supply and prices are highly volatile, the mission of the CER, acting in the interests of consumers, is to ensure that:
· the lights stay on
· the gas continues to flow
· the prices charged are fair and reasonable
· the environment is protected, and
· electricity and gas are supplied safely
There are four main functional Divisions of the CER supported by an Operations Division that provides support services across all teams.
Generation and Existing Wholesale Market Division
The Generation and Existing Wholesale Markets Division is responsible for the operation of the present wholesale market (including licensing of new and existing generation companies), the security of electricity supplies and the regulation of ESB Power Generation (ESB PG), the largest electricity generator in Ireland. 2007 will be the last trading year of the present electricity wholesale market, as the new Single Electricity Market (SEM) trading arrangements will come into operation on 1 November 2007.
The Division also has responsibility for the implementation of the safety provisions of the Energy (Miscellaneous) Provisions Act 2006, which relates to the regulation of electrical contractors and natural gas installers with respect to safety and the regulation of natural gas undertakings with respect to safety.
All Island Markets Division
The All Island Markets Division has been established to manage the development of an all island energy market, working in close co-operation with the other Divisions within CER and with the Northern Ireland Authority on Energy Regulation (NIAER).
The first task in the development of an All-Island Energy Market (AIEM) is the establishment of the SEM (Single Electricity Market) which is due to go-live on 1 November 2007. This is the establishment of new wholesale electricity trading arrangements for the island of Ireland. The key driver behind the establishment of the SEM is the promotion of wholesale competition between generators across Ireland and Northern Ireland and the associated benefits which this will bring for customers in both jurisdictions.
The Energy Networks Division is responsible for regulating the electricity and gas transmission and distribution networks and ensuring that these strategic national assets are maintained and developed economically and in the long term interests of the Irish consumer.
A key goal of the Division is to ensure equitable access for all generators, shippers and other customers to the networks. The networks team also resolves disputes about connections to the electricity and gas networks – for generators, suppliers and customers – and regulates the process for connecting renewable generators to the network. The Division also has key responsibilities in approving network investment programmes, monitoring their implementation, setting transmission and distribution tariffs, and developing network policy on specific issues as and when these arise.
Environment, Retail and Consumer Affairs
The Environment, Retail and Consumer Affairs (ERCA) Division is responsible for regulation of the supply markets (retail markets) for electricity and gas in Ireland. The Division oversees the development of consumer policy as it applies to gas and electricity customers and ensures that the correct market structures to support competition in the retail markets are in place. The Commission’s policies for renewables and environmental topics are also developed by the ERCA Division.
The Division is responsible for analysing ESB Customer Services (ESB CS) proposals to change electricity tariff structures and levels as well as regulating the revenues allowed annually to ESB CS. The ERCA Division also reviews Bord Gáis Energy Supply (BGS) tariffs for the domestic market as well as the Regulated Tariff Formula (RTF) for industrial and commercial customers.
As part of the Commission’s widened remit in relation to consumer protection the Commission established a Customer Care team (CCT) in 2006 which forms part of the Environment, Retail and Consumer Affairs Division. The activities of this new team include dealing with queries and complaints from customers of electricity and gas suppliers (also certain complaints against the network operators) as well as monitoring the performance of all gas and electricity suppliers in the market.
The Operations Division within the CER is primarily an internal support Division to the four policy and regulatory Divisions. The Operations Division is made up of the HR Department, the Finance Department and the recently established Business Information Centre (BIC).
Further information on the Commission for Energy Regulation can be found on its website www.cer.ie.