Electricity Regulation

Table of Contents

Commission Established

The Electricity Regulation Act 1999 implemented Directive No. 96/92/EC. It provided for the Commission for Electricity Regulations (now the Commission for Regulation of Utilities) which would have powers to grant licences for the supply of electricity and for construction of generating stations. It provided for access to the transmission and distribution systems by holders of licences and eligible customers.

Electricity Regulation Act 1999 (Establishment Day) Order, 1999 established the Commission for Electricity Regulations (now the Commission for Regulation of Utilities) under the Electricity Regulation Act 1999.

The Electricity Regulation Act, 1999 (Criteria For Determination Of Authorisations) Order, 1999 set out the criteria for deciding on authorisations for licences by the CER (CRU AFTER 2016 ACT) to construct a generating station. This includes matters of safety and security of the system public service obligation energy efficiency and protection of the environment.

Criteria for Authorisation

On an application the Commission may grant an authorisation on the basis that it is satisfied as to the following matters

if it grants the authorisation, no activity carried out under it will adversely affect the safety and security of the electricity system;
if it grants the authorisation, energy will be used efficiently in the course of any activities carried out under the authorisation;
the applicant will comply with any grid code or distribution code in so far as it is applicable to the applicant and, at the relevant times, will have the capability of doing so;
the applicant has commenced, or will at the appropriate time commence, to apply for all applicable statutory consents related to the matters referred to in section 18 necessary for the construction of the plant to which the application relates;
the generating station to which the application relates will be constructed and commissioned within a period which the Commission shall specify in relation to each application;
the generating station to which the application relates will be capable of providing an appropriate level of ancillary services being the services necessary to ensure the stable and secure operation of the electricity system, including the provision of spinning reserve, reactive power, frequency control or black start capability, as specified by the Commission in the authorisation;
the generating station to which the application relates will be capable of generating electricity for any minimum continuous period which is specified by the Commission in the authorisation using a primary fuel source of a nature other than that proposed to be used predominantly;
the applicant is a fit and proper person to be granted an authorisation and has the financial capacity and technical skills to carry out the activities to which the application relates and to comply with the authorisation, if granted;
the applicant will be capable of complying with any order made by the Minister under section 39 of the 1999 Act.

The provisions of the Electricity (Supply) Act 1927 were amended to remove the power of ESB to authorise and permit generation distribution and supply of electricity by other undertakings. The power is vested in the Commission. Regulations made by ESB may be applied to other electricity undertakings and eligible customers. Future regulations made by ESB are subject to the consent of the Commission.

Grid and Distribution Code

The Electricity Supply Board was to prepare a grid code and distribution code for the operation of those systems to be approved by the Commission. They will provide for technical matters regarding connection to and operation of the systems as licensed to authorisation and licence holders.

The ESB must offer to enter an agreement with the licence authorisation holder or an authorised customer (those eligible in the initial phases) regarding connection to and use of these systems. The Commission may give directions in relation to the matters to be provided for in those agreements.

The ESB was required to prepare a statement setting out the basis for the charges for connection for use of the systems. It is also to be available to other prospective entrants to allow them ascertain the basis of which they might be charged and enter the market and be charged accordingly.

The Commission for Electricity Regulations (now the Commission for Regulation of Utilities) grant permission to construct direct lines for transmission and distribution of electricity from licence authorisation holders to eligible customers where access is refused due to lack of capacity in the existing systems.

The ESB must prepare a statement for approval by the Commission providing for estimates of future generation and transmission requirements. It is to be revised annually and made available to licence and authorisation holders. It also must also provide for electricity to be dealt provided for by renewable sustainable and alternative energy sources.

Infrastructure

The infrastructure of wires and cables around the country is divided into the transmission network and the distribution network. The transmission network sends electricity from generating stations to main points (nodes) in the country.

The National Grid has over a 100 high voltage transformer stations where voltage is reduced from the 100 to 400,000 volts in the transmission system to lower voltages of 10 to 40,000 volts for distribution. Larger operators take power supply directly from these transformer stations.

There are over 6500 kilometres of high voltage transmission lines in to the country. They are operated by Eirgrid. EirGrid is responsible for operating and planning the development of the transmission system. Eirgrid is responsible for policy and strategy in relation to the transmission system.

Most power is transmitted onwards at medium voltages via a second distribution network of about 80,000 kilometres of wires and cables to smaller local electricity stations. At local substations electricity is transformed down to mains voltage for residential and smaller business use.

The electricity passes into the distribution network at these points. The distribution network then sends electricity supply to customers’ premises. ESB Network which has separated from ESB owns and operates the medium and lower voltage distribution systems. ESB Networks is required to provide services to all the customers irrespective of their supplier.

ESB Networks is responsible for the operation, maintenance and development of the electricity distribution network in Ireland. It is also responsible for maintaining and developing the transmission network.

In 2009, Eirgrid purchased the transmission system operator in Northern Ireland which had been wholly owned by Veridian. The transmission networks for the whole Ireland are accordingly under a single operator. In the December 2010, ESB purchased NIE’s transmission and distribution network.

Regulation of Contractors

The Energy (Miscellaneous Provisions) Act 2006 expanded the functions of the Commission for Energy Regulations (now the Commission for Regulation of Utilities). The provisions were commenced by The Energy (Miscellaneous Provisions) Act 2006 (Commencement of Certain Provisions) Order 2008

The Energy (Miscellaneous Provisions) Act 2006 provided for the regulation by the Commission of electrical contractors and gas installers in relation to safely. It allowed for appointment of designated bodies for electrical and gas contractors to undertake regulation. The designated bodies are to undertake supervisory functions in accordance with criteria in the legislation. They charge fees which must be approved by CER (CRU. Members of the bodies are designated as registered electrical or gas contractors.

There is provision for an appeal against refusal suspension or revocation of registration.

The Electricity Regulation Act 1999 (Gas Works) Regulations 2009 designated certain classes of works covering installation removal repair servicing maintenance of certain natural gas fittings and equipment. Breach of the requirements is an offence which may be prosecuted by CER.

Electrical Safety

CER (CRU after 2016 Act) after consultation may prescribe the classes of electrical works which may be subject to a completion certificate to be issued by a registered contractor If not so done they are to be inspected by a designated body prior to issue a completion search.

CER (CRU) may appoint officers for the purpose of investigation and ensuring compliance with the regulatory requirements. Breaches of the requirements are an offence. They have powers to investigate unregistered electrical contractors and to investigate designated electrical works and safety compliance perspective.

The CER (CRU) may require electricity providers to provide information on electrical safely to their customers and to the public. The legislation also amended the borrowing powers of BGE and Bord Na Mona. It provided for rehabilitation of land used for mining and former mines.

The Minister for Communications, Marine and Natural Resources may make policy direction to CER (CRU). Before so doing it must be published as a draft with reasons for the proposal. Interested parties may make representations which must be taken into account.

The CER may appoint Electrical Investigation Officers to investigate whether designated electrical works are carried out safely and by registered electrical contractors. The provision also details the scope and powers of the electrical investigation officer. The CER may require electricity undertakings to provide information on electrical safety to electricity customers and to the public.

Energy Efficiency Obligations

The provisions provide a legal framework in primary legislation for the placing of energy efficiency obligations on energy suppliers and distributors that are currently regulated under secondary legislation. The Minister for Communications, Energy and Natural Resources sets quantitative and qualitative multi-annual energy efficiency targets to be met by energy suppliers and distributors through the provision and promotion to their customers of energy services and energy efficiency improvement measures such as insulation, efficient boilers, renewables etc.

The Minister for Communications, Energy and Natural Resources may place energy efficiency obligations on energy suppliers by means of an energy efficiency notice. Where an energy supplier has not complied with an energy efficiency notice the Minister may issue directions to energy suppliers specifying remedial action. The section gives powers to the Minister to apply to the High Court for orders directing energy suppliers to comply with the Minister’s direction.

Energy suppliers may establish voluntary agreements for the purpose of promoting energy efficiency to final customers, in lieu of obligations. There is a provision for the approval and revocation of such agreements by the Minister.

There is an Energy Efficiency Fund. The objectives of the Fund, which will be managed by the Minister, are primarily to support the delivery of energy efficiency improvement programmes and measures and to promote the development of a market for energy efficiency improvement measures. The Fund will be managed by the Minister. The Fund may issue or provide grants and loans in order to support the delivery of energy efficiency programmes and measures, and to promote energy audits and financial instruments for energy savings.

Combined Heat and Power

The 2006 Act provided enhanced flexibility for licensing of electricity from green and combined heat and power sources. It incorporated harmonised efficiency reference values pursuant to EU directive.

The Energy (Miscellaneous Provisions) Act 2006 (Commencement of Section 6) Order 2009 commenced the provisions for licensing of combined heat and power sources in accordance with the Electricity Regulation Act 1999 (Appointment of Person to Calculate Power to Heat Ratios of Combined Heat and Power Units) Order 2009 .

Interconnector

The 2006 Act made provisions for an electricity interconnector to be owned by an independent entity and authorised and licensed by CER (CRU after the 2016 Act) for that purpose. The CER (CRU) may, with the consent of the Minister, secure the construction of the interconnector by tender or by authorisation without a prior tender or directly by requesting the transmission system operator to do so under its development plan.

The interconnector operator allows access to it on a non-discriminatory published basis subject to the approval and oversight of the CER (CRU AFTER 2016 ACT). There is an appeals provision.

The Electricity Regulation (Amendment) (EirGrid) Act 2008 established EirGrid as the national transmission system operator. It was carved out of the ESB and empowered to construct and maintain an East-West UK interconnector. The legislation provided for authorisation by CER (CRU) for this purpose.

Metering Issues

The Energy (Miscellaneous Provisions) Act 2012 confirms the CER (CRU) ‘s power to require energy businesses to ensure tariffs are energy efficient. The legislation also requires energy suppliers to provide clear and comprehensible information in consumer bills.

The CER (CRU) must ensure that final consumers of electricity and gas are provided with a competitively priced smart metering system reflecting actual energy consumption. It must provide information on the time of use.

Security of Market

The 2006 Act allows for emergency measures in the event of a sudden threat to the energy market whether arising from physical safety or security infrastructure or the integrity of the gas or electricity distribution and transmission networks. The Minister may by order direct the CER (CRU) for authorised undertakings to take safeguard measures as may be specified. The measures must be no more than necessary to deal with the particular disturbance or emergency.

Gas Safety

The 2006 Act provides provision for natural gas safely. This includes regulation and safety promotion by the CER (CRU) having consulted with the National Standards Authority of Ireland regarding standards. It was to establish and implement a national gas safety framework and for this purpose may direct gas undertakings to advise the public and customers in relation to gas safely.

The 2006 Act regulates gas installers. The Energy (Miscellaneous Provisions) Act 2006 (Commencement of certain Provisions) Order 2008 commenced the provisions . CER (CRU) may appoint a designated body as the safely body with which installers and contractors must register.

They may prescribe standards of training and work in accordance with criteria in the legislation. There is a provision to ensure ongoing responsibility for the maintenance of natural gas fittings. The CER (CRU) may specify classes of works which certificates of completion are required to specify the requirements in that regard.

Wholesale Energy Market

European Union (Wholesale Energy Market Integrity and Transparency) Regulations 2014 designate a CER (CRU) as the Irish regulatory body. They also provide for criminal offences for breach of the Regulation.

They confer authorised officers with powers to summon persons carry out inspections requires data and require cessation of practices contrary to the regulation. They may apply to court for freezing or segregation of assets and imposition of prohibitions by way of enforcement. The regulations provide domestic penalties for breach.

CRU

The Commission for the Regulation of Utilities (Appointed Day) Order 2017 change the name of the , the Commission for Energy Regulation . It became the Commission for the Regulation of Utilities (CRU)

The so-called Brexit Omnibus Act granted the CRU additional powers in the context of the United Kingdom leaving the European Union. It may modify licences as necessary to ensure compliance with EU rules in respect of cross-border trade and electricity.