The Commission for Energy Regulation (CER), Ofgem and the Utility Regulator (the National Regulatory Authorities) are today jointly publishing their final decision on the cross border allocation of investment costs for the proposed Gaslink Twinning and Shannon LNG projects.
Both the Gaslink and Shannon projects have been adopted as Projects of Common Interest (PCI) by the European Commission (EC). Given this PCI status the promoters of these projects may apply for European funding. A part of this process requires that projects be considered for a Cross Border Cost Allocation (CBCA) decision by the National Regulatory Authorities (NRAs) of impacted jurisdictions. These requirements are set out in the trans-European energy infrastructure Regulation 347/2013 (“the Regulation”).
Both Gaslink and Shannon LNG have applied for a CBCA in accordance with Article 12 of the Regulation. Article 12 of the Regulation also requires that the NRAs come to a co-ordinated decision on the CBCA of investment costs for each of these projects.
Accordingly the NRAs have evaluated the information provided in each of the project promoters’ applications and have come to a co-ordinated decision for both projects. The NRAs have agreed to allocate all costs to the Republic of Ireland for both the Shannon LNG and Gaslink Twinning projects.
The formal co-ordinated decision between the NRAs and the decision letters from each of the NRAs to the project promoters are available below. The letters to the project promoters set out the NRAs’ reasoning for coming to this decision.
Gaslink Twinning (PCI 5.2)
• NRA co-ordinated decision
• CER decision letter
• Ofgem decision letter
• Utility Regulator decision letter
Shannon LNG (PCI 5.3)
• NRA co-ordinated decision
• CER decision letter
• Ofgem decision letter
• Utility Regulator decision letter
For further information please contact either Barry Hussey (bhussey@cer.ie); Iain Morgan (Iain.Morgan@ofgem.gov.uk); or Richard Hume (richard.hume@uregni.gov.uk).