The CRU licenses and monitors
electricity generators. On the
transmission network, generally, the
high voltage lines deliver electricity from Ireland's generation sources to the
transformer stations, where the electricity voltage is reduced and taken onwards through the
distribution system to individual customers' premises. There are also about 18 very large commercial customers directly connected to the transmission system.
EirGrid is the independent state-owned body licensed by the CRU to act as
transmission system operator (TSO) and is responsible for the operation, development, and maintenance. The TSO also offers terms and levies charged to market participants to connect to and use the transmission system regulated by the CRU.
ESB Networks is licensed by the CRU as the owner of the transmission system and is responsible for carrying out the maintenance and construction of the system. The CRU sets the allowed revenue/tariffs for the transmission business and approves the connection policy for generators and suppliers connecting to and/or using the network. The Distribution Network is the medium and low voltage
electricity network used to deliver electricity to connection points such as houses, offices, shops, and street lights. The Distribution Network includes all overhead electricity lines, poles, and
underground cables used to bring power to Ireland's customers. ESB Networks (a ring-fenced subsidiary within the ESB Group) is the Distribution System Operator licensed by the CRU, responsible for building, maintaining, and operating the distribution network infrastructure. The Distribution Network is owned by ESB, the licensed Distribution Asset Owner. The CER sets the allowed revenue/tariffs for the distribution business and approves the connection policy for generators and suppliers connecting to and/or using the network.
Supply The CRU licenses and monitors electricity suppliers. The CRU has overseen the gradual liberalization of the electricity supply market, culminating in a full market opening in February 2005. The
regulatory framework created the right environment for competition to develop, and since then, competition has increased in the business and domestic markets. As a result, in 2010, the CRU published its
Roadmap to Deregulation, which set out the end price regulation milestones. All business markets were deregulated from 1 October 2010. Since April 2011, the domestic market has been deregulated so that all electricity suppliers may set their tariffs without price regulation from the CRU.
Single Electricity Market Since 1 November 2007, the Commission for Regulation of Utilities, (known then as the Commission for Energy Regulation (CER)) and Utility Regulator, together referred to as the Regulatory Authorities or RAs, have jointly regulated the all-Island wholesale
electricity market known as the
Single Electricity Market (SEM). The SEM covers both Northern Ireland and the Republic of Ireland. The decision-making body that governs the market is the SEM Committee, consisting of the CRU, the Utility Regulator, as well as an independent member (who also has a deputy), with each entity having one vote. The detailed rules of the SEM are set out in the Trading and Settlement Code, which is overseen by the SEM Committee. At a high level, the SEM includes a centralized gross pool (or spot) market, which, given its mandatory nature for key generators and suppliers, is fully liquid. In this pool, electricity is bought and sold through a market-clearing mechanism. Generators bid in the Short Run Marginal Cost (SRMC) and receive the System Marginal Price (SMP) for each trading period their scheduled market quantities. Generators also receive separate payments for the provision of available generation capacity through a capacity payment mechanism and constraint payments for differences between the market schedule and the system dispatch. Suppliers purchasing energy from the pool pay the SMP for each trading period along with capacity costs and system charges. ==Natural gas==