Natural gas network charges could increase even as changes to the energy system cut overall demand for the fuel, according to industry watchdog the Commission for the Regulation of Utilities (CRU).
The commission has begun a consultation that will determine prices that State company Gas Networks Ireland (GNI) can charge for use of its systems from this year to 2031.
“A potential reduction in gas demand and customer numbers over time may place upward pressure on network charges,” the regulator said on Thursday.
However, it cautioned that there was no estimate of what the charges would be over the five-year period.
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The regulator can only determine that after assessing GNI’s submissions.
The State company does not comment on ongoing consultations with the CRU.
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Government plans to boost renewable electricity use, including for domestic purposes such as heating homes, could cut demand for natural gas into the next decade.
A CRU paper published yesterday shows that natural gas was used to generate about 42 per cent of the electricity used in the Republic during 2024.
While that figure could fall, the CRU notes that the fuel will continue to play “an important role” in supporting security of energy supplies, generating electricity and powering industry.
Consequently, GNI will have to maintain and develop its network to meet these needs, potentially sharing the cost of this among smaller numbers of users.
That will include ensuring it can meet extra demand during long winter cold spells when there is little or no wind to provide electricity.
Demand for natural gas to generate power could increase even more sharply than during those peak demand periods, the CRU strategy paper indicates.
Along with responding to changes in gas demand and in the use of its network, GNI is also supporting the development of renewable gas, including biomethane.
The CRU is seeking feedback from stakeholders for the next price control period through a process called PC6.
Chairman Fergal Mulligan said the strategy paper marked an important first step in this.
“Ireland’s energy system is undergoing significant change. And it is essential that the gas network continues to operate safely and reliably while adapting to a lower-carbon future,” he added.
