Dáil Éireann Debate, Tuesday - 11 June 2013
72. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the way the creation of the European Internal Energy Market can be used to reduce energy prices for consumers here; and if he will make a statement on the matter. [27856/13]
View answerThe Third Energy Package, agreed in 2009, aimed to fully implement the EU Internal Energy Market. The objectives of the internal energy market are the achievement of better outcomes for EU citizens through contributing to economic growth and jobs, by providing secure energy at an affordable and competitive price, and through sustainability in energy use. On 4 February 2011 the European Council declared that the internal energy market should be completed by 2014. This goal was reaffirmed at the European Council of 22 May 2013. The creation of the internal energy market in wholesale and retail electricity and gas markets helps put downward pressure on energy prices not least by promoting generation competition.
While considerable progress has been made, the European Commission considers that obstacles remain to the achievement of a fully functioning internal market in electricity and gas across the entire EU. Accordingly, on 15 November 2012, the European Commission presented a Communication assessing progress towards achieving the internal energy market. The Communication provides a timely stocktake on progress towards a single market in electricity and gas and aims to address the remaining obstacles on the road to full implementation as well as reflecting on how the Internal Energy Market can fulfil its considerable potential and deliver real benefits for all EU energy consumers, specifically households, business and industry. The Communication referred to the formation of the All-Island electricity market in Ireland as a positive contribution to the construction of the internal market.
The Communication proposes a detailed set of actions, under the heading of an “Action Plan for Europe” to ensure the successful implementation of the internal energy market by 2014. The Action Plan identifies four main challenges and accompanying actions which, if implemented across the EU, would enable Member States to meet various sub-goals resulting in achievement of a well-functioning and effective internal energy market. In this regard I am pleased to inform the House that last Friday, under our EU Presidency of the Energy Council, I secured the agreement of my energy Ministerial colleagues to the Energy Council’s Conclusions on the Communication. The Conclusions set out Ministerial views of the tasks and actions necessary to make the transition to the internal energy market.
Foremost among the actions I mentioned earlier, necessary for the implementation of the internal market, I would highlight consumer empowerment. The European Commission estimates that across the EU consumers could save up to €13 billion annually by switching to the cheapest supplier. This is a timely reminder that in a competitive market consumers can, and should, shop around to get the best possible price and service deal from suppliers and switch supplier, if necessary, bearing in mind that all suppliers can and do offer competitive prices and products.
In the Irish market there are a number of suppliers competing in the retail market in both electricity and gas and offering various prices and products to domestic and business consumers. In addition, electricity prices are no longer regulated. In this environment consumers can readily access prices offered by suppliers and easily switch if they wish to do so. Switching is continuing in both the electricity and gas markets with switching rates of 16.97% for gas and 11.27% for electricity reported by the Commission for Energy Regulation (CER) for 2012.
