The CER has recently closed public consultations on how to apportion the €50 million annual fixed running cost of the gas interconnector pipeline from Great Britain. By landing gas itself on the Shannon, Hess claims it is not subject to the tarrif and threatened legal action‘.
Submissions to the CER by major Irish Energy players have highlighted a 'loophole' by which Irish energy suppliers will have to pay for the new interconnector with the UK while the foreign operators of the Shannon LNG will be exempt.
Safety Before LNG and Friends of the Irish Environment took an unsuccessful Judicial Review of the failure to conduct a Strategic Environmental Assessment encompassing the proposal. The short cutting that took place in the approval process will ironically be the cause of its collapse if the Hess LNG business model is successfully opposed by the CER.
To now waive a levy of up to 22.5 million euro annually as proposed by Minister Jimmy Deenihan at the consumer's expense would amount to state aid for Hess LNG and discourage further investment in alternatives to fossil fuels.