Dáil Éireann Debate, Thursday - 5 May 2016
141. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources if his Department or the Commission for Energy Regulation have conducted an analysis of the price gap between the wholesale and consumer price of energy; the results of this analysis; and if he will make a statement on the matter. [9335/16]
View answerThe electricity and gas markets are commercial, liberalised, competitive and operate within national and European regulatory and legislative regimes. Responsibility for the regulation of Ireland's electricity and gas markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. I have no statutory function in the setting or review of electricity or gas prices. It is Government policy to encourage competition in the electricity and gas markets.
The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. There is no price control in the oil sector. I have no statutory function in the setting or review of oil, petrol or diesel prices.
In Statutory Instrument 630 of 2011 the CER was assigned, inter alia, market monitoring functions in relation to the supply of electricity and gas. These functions included monitoring the development of competition in the supply of electricity and gas to final customers and taking action to ensure that final customers are benefitting from competition. In this regard, CER publishes quarterly market monitoring reports.
The Electricity Regulation Act, 1999 provides for CER’s regulatory independence and its accountability to a Committee of the Oireachtas for the performance of its functions. I note that at its most recent appearance in front of the Oireachtas Committee when prices formed part of the agenda, CER representatives described for members the relationship between wholesale and retail prices at that time and their view that retail competition is working in Ireland as evidenced by switching rates.
The CER also briefs me periodically on broad electricity and gas market developments including on its market monitoring reports. I am confident that the regulator is carrying out its functions effectively and that it will continue to ensure that competitive markets are delivering for all consumers.
