The Commission for the Regulation of Utilities (CRU) has today published its Strategy Paper for Price Control 6 (PC6), setting out the proposed strategic direction for the next regulatory period for Gas Networks Ireland (GNI).
The PC6 review comes at a pivotal time for Ireland’s energy system. While gas will continue to play an important role in supporting security of supply, electricity generation and industrial demand, Ireland is also transitioning towards a lower-carbon energy system. This evolving landscape presents significant challenges and opportunities for the future development of the gas network, including a reducing demand and customer base which may place upward pressure on network charges.
The Strategy Paper sets out the CRU’s vision, priorities and proposed approach for PC6. It also provides early guidance to GNI and stakeholders on the issues that are expected to shape the next price control period and seeks stakeholder views before the CRU develops its draft determination.
A key focus of PC6 will be ensuring that GNI can continue to safely operate, maintain and develop the gas network while delivering value for money for consumers. In this regard, the Strategy Paper highlights several key areas including:
• Maintaining security of gas and electricity supply during the energy transition;
• Supporting the development of renewable gases, including biomethane;
• Responding to changing patterns of gas demand and network utilisation;
• Delivering efficient network investment while protecting consumers from unnecessary bill impacts; and
• Ensuring the gas network remains safe, resilient and fit for purpose.
The transition to a lower-carbon energy system is likely to result in significant changes to how the gas network is used over time. These developments raise important questions regarding future network investment requirements and cost recovery. The Strategy Paper seeks stakeholder views on these issues. The CRU also welcomes stakeholder feedback on the CRU commissioned Future or Gas report and its findings published alongside the Strategy Paper.
The publication of the Strategy Paper marks the first major milestone in the PC6 process. Stakeholder feedback will be considered alongside GNI’s business plan submissions as the CRU develops its draft determination expected to be published in Summer 2027.
C1. Are there any other evolving national legislative or policy issues that are likely to impact PC6 regulatory approach and the price control methodology?
C2. Are there any other evolving European legislative or policy issues that are likely to impact PC6 regulatory approach and the price control methodology?
C3. What are stakeholders’ views on the likely impact of the evolving policy developments in the PC6 period and revenue determination process?
C4. What are stakeholders’ views on the appropriate regulatory treatment of biomethane-related network investments including reverse compression facilities within PC6?
C5. Related to Q4 - the extent to which associated costs should be recovered through allowed revenues
C6. Related to Q4 - the allocation of these costs between biomethane producers network users and other beneficiaries
C7. Related to Q4 - and how the regulatory framework should balance national biomethane policy objectives with the efficient development and utilisation of the gas network
C8. What are stakeholders’ views on the PC6 supply and demand dynamics presented in this paper. Are there additional factors that may influence the supply and demand dynamics in the PC6 period that should be considered in the revenue determination process?
C9. What are stakeholders’ views on the peak demand dynamics and how it may impact the network needs and associated network investment?
C10. What are stakeholders’ views on Baringa’s scenarios and methodology which is published alongside this Strategy Paper?
C11. In the context of the challenges and opportunities mentioned above are there any other challenges or opportunities that ought to be considered in making the PC6 determination?
C12. What are your views on the most pertinent challenge and opportunity that needs to be considered as part of the PC6 determination process?
C13. What are stakeholders’ views on the PC6 Outcomes objectives and principles that are set out in the Strategy Paper?
C14. What are stakeholders’ views on the PC6 approach to delivery?
C15. What are stakeholders’ views on the CRU’s proposed approach to the PC6 regulatory framework whereby changes will generally be limited to deferred PC5 issues legislative and policy developments and measures needed to prepare GNI for declining gas demand?
C16. The CRU intends to review its approach to depreciation. What are stakeholders’ views on introducing a 20 to 25 year limit on the investment appraisal period for capital investments under PC6?
Price Control 6 Strategy Paper
Price Control 6 Strategy Paper
The Commission for the Regulation of Utilities (CRU) has today published its Strategy Paper for Price Control 6 (PC6), setting out the proposed strategic direction for the next regulatory period for Gas Networks Ireland (GNI).
The PC6 review comes at a pivotal time for Ireland’s energy system. While gas will continue to play an important role in supporting security of supply, electricity generation and industrial demand, Ireland is also transitioning towards a lower-carbon energy system. This evolving landscape presents significant challenges and opportunities for the future development of the gas network, including a reducing demand and customer base which may place upward pressure on network charges.
The Strategy Paper sets out the CRU’s vision, priorities and proposed approach for PC6. It also provides early guidance to GNI and stakeholders on the issues that are expected to shape the next price control period and seeks stakeholder views before the CRU develops its draft determination.
A key focus of PC6 will be ensuring that GNI can continue to safely operate, maintain and develop the gas network while delivering value for money for consumers. In this regard, the Strategy Paper highlights several key areas including:
• Maintaining security of gas and electricity supply during the energy transition;
• Supporting the development of renewable gases, including biomethane;
• Responding to changing patterns of gas demand and network utilisation;
• Delivering efficient network investment while protecting consumers from unnecessary bill impacts; and
• Ensuring the gas network remains safe, resilient and fit for purpose.
The transition to a lower-carbon energy system is likely to result in significant changes to how the gas network is used over time. These developments raise important questions regarding future network investment requirements and cost recovery. The Strategy Paper seeks stakeholder views on these issues. The CRU also welcomes stakeholder feedback on the CRU commissioned Future or Gas report and its findings published alongside the Strategy Paper.
The publication of the Strategy Paper marks the first major milestone in the PC6 process. Stakeholder feedback will be considered alongside GNI’s business plan submissions as the CRU develops its draft determination expected to be published in Summer 2027.
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