Vol. 533 No. 3
60 Mr. Stanton asked the Minister for Public Enterprise her views on the escalating costs of fuel to business; the measures being taken by her Department to help reduce the cost of fuel and energy generally; and if she will make a statement on the matter. [8811/01]
I have no statutory function in relation to fuel prices. However, the Deputy will be aware that in the recent budget in December 2000, the Minister for Finance reduced the excise duty on unleaded petrol by 2p per litre, 2.4p VAT inclusive, and on auto-diesel by 6p per litre, 7.3p VAT inclusive. With the 1% VAT reduction in January 2001, this means a cumulative tax reduction of 3p per litre for unleaded petrol and 7.8p per litre for auto-diesel.
In relation to electricity, phased liberalisation of the electricity market, moving to full market liberalisation in 2005, will incentivise competition in the generation and supply of electricity. It is expected that increased competition in this sector will lead to downward pressure on price.
Liberalising the Irish gas market means giving eligible customers the right to choose their own supplier, or source their own gas. While the Government has no role in the price of natural gas, giving customers the right to choose enables them to get the best deal available in the market. At the moment, this option is open to all gas fired electricity generators, regardless of size, and to customers consuming 25 million standard cubic metres per annum. I intend to lower this threshold to 2 million standard cubic metres per annum. This measure will be put into effect in a Bill which I intend to have passed by this summer.
Finally, Irish business can minimise fuel costs by increasing energy efficiency. My Department's Green Paper on Sustainable Energy highlights necessary measures to promote energy efficiency among targeted consumers, such as the residential sector, industry, the services sector, the public sector and the transport and electricity sector. For example, the annual self-audit and statement of energy accounts scheme, which is managed by the Irish Energy Centre, has resulted in cumulative saving of £12 million in energy costs over the last four years. This self-audit scheme has 72 member companies with a combined energy spend of over £165 million.
