New energy legislation introduced last week is set to substantially change the existing energy legislative framework in Northern Ireland and pave the way for a number of important developments in the coming months, according to Trade Minister Ian Pearson.

The Energy Order began as a Bill of the Northern Ireland Assembly, but when the devolved administration was suspended it was converted to an Order in Council to be progressed through the Westminster legislative process and was made on February 27.

Mr Pearson said: “The Order alters the current regulatory and consumer representation framework. It enables postalisation of gas conveyance charges, the introduction of a Renewables Obligation and changes to the structure of existing energy business activities. The challenge now is to move ahead and make the practical changes necessary to give effect to these provisions.

“The immediate priorities will be to give effect to the regulatory and consumer representation arrangements and to proceed with postalisation to enable the extension of the gas network to proceed.”

The Minister went on to outline proposed timings for the key provisions saying: “The benefits of the proposed gas project for the Northern Ireland Energy Consumer should not be underestimated. Its completion will mean that gas will potentially be available to 77% of the population, in comparison with only 45% at the present.

“I hope that the new Regulatory Authority and the expansion of the General Consumer Council’s remit to cover all energy issues will be in place by 1 April this year and work is continuing with that date in mind. The arrangements to give effect to postalisation are still under discussion by all the parties, but I hope that agreement can be reached quickly to create a sound basis for extension of the gas industry.”

The Minister also said that, in relation to the creation of a Renewables Obligation, there is a substantial amount of work to be done in developing the necessary subordinate legislation and there would be public consultation on the detail later in the year.

The development of the legislation followed a series of consultation exercises. In March 2002, the Department published 'Towards a New Energy Market Strategy for Northern Ireland' which sought views on the direction of a new 10-year energy strategy and priorities for legislation. Subsequently, in June 2002, the Department published for consultation a draft of the Energy Bill, alongside draft Equality and Regulatory Impact Assessments.

(GMcG)