Written Answers Nos. 142 - 146
142. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources his views on the cost of energy faced by consumers; if he has considered any options in this regard; and if he will make a statement on the matter. [9336/16]
View answerI am acutely aware of the financial challenges faced by consumers from high energy prices. However, it is important to note that the electricity and gas markets are commercial, liberalised, and competitive and that they operate within national and European regulatory regimes. I have no statutory function in the setting or review of electricity or gas prices.
Responsibility for electricity and gas market regulation is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. The CER ceased regulating retail electricity prices in 2011 and retail gas prices in 2014.
The competitive energy market results in choice for consumers and businesses in terms of suppliers, products and prices, exerting downward pressure on prices. Under various relevant Statutory Instruments, CER carries out statutory market monitoring functions and has the responsibility to ensure the market operates competitively for the benefit of the consumer. The statutory functions include monitoring whether the development and operation of competition in electricity supply is benefitting final customers. CER market monitoring reports are available on its website. In this regard 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 as I set out in the Energy White Paper published in December last.
The latest Eurostat average electricity and gas price statistics as published by the Sustainable Energy Authority of Ireland (SEAI) relate to the first half of 2015. The report shows that the vast majority of residential consumption bands in both electricity and gas experienced reductions in average prices in the first half of 2015. Focusing on the consumption bands with the largest share of the market, Eurostat figures show that average prices for Irish residential gas consumers were 5% lower than the Euro Area average, while average prices for business gas consumers were 3% lower than the Euro Area average. Average prices for residential electricity consumers were 4% below the Euro Area average, while average prices for business electricity consumers were 6% above the Euro Area average.
In recent public communications the CER indicated that if the current international trend in wholesale electricity and gas prices continued, there would be scope for price reductions for consumers in 2016. The announcement last week of further price reductions by Electric Ireland, following announcements by a number of suppliers in 2015, indicates that competition is working for the benefit of customers. While I have no statutory role in the setting or review of energy prices I welcome these reductions by energy suppliers in domestic gas and electricity prices.
143. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources the dividends paid to the Exchequer by each of the semi-State energy companies; their reported profits, for each of the past five years, in tabular form; and if he will make a statement on the matter. [9337/16]
View answerThere are three commercial State Bodies under the aegis of my Department that pay dividends to the Exchequer. These are: Bord na Móna, EirGrid and ESB. Information regarding reported profits and dividend payments by these companies is contained within their annual reports, which are available online.
144. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources to outline the regulatory function of the Commission for Energy Regulation in regard to cost and consumer protection; the basis for this in legislation; and if he will make a statement on the matter. [9338/16]
View answerThe Commission for Energy Regulation (CER) is Ireland’s independent energy regulator. The CER was established in 1999 and has a range of economic, customer protection and safety responsibilities in the energy sector.
The CER is also Ireland’s economic regulator of the public water and wastewater sector. The development of policy in the water area is the responsibility of the Minister for the Environment, Community and Local Government.
The CER was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation. Its regulation of the gas market is legally underpinned by the Gas (Interim) (Regulation) Act, 2002, as amended. The CER regulates water services under the Water Services Act 2013 and the Water Services Act 2014.
The CER ceased regulating electricity prices in 2011 and gas prices in July 2014. The electricity and gas markets are commercial, liberalised and competitive and they operate within national and European regulatory and legislative regimes. Prices are set competitively by suppliers.
The CER was assigned the function of market monitoring under the European Communities (Internal Market in Electricity) Regulation 2010, subsequently amended by the European Communities (Internal Market in Natural Gas and Electricity) Regulations 2011. Under these regulations the CER is charged with monitoring, inter alia, rates of customer switching, disconnection rates, customer complaints and whether the development and operation of competition in the supply of electricity and gas is benefiting final customers. 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 is also responsible for implementing energy specific consumer protection measures including, under the European Communities (Internal Market in Electricity and Gas) (Consumer Protection) Regulations 2011, obligations on every electricity and natural gas supplier to establish, publish and maintain in a form approved by the CER, Customer Codes of Practice and Customer Charters for household customers. The CER also provides a statutory complaints resolution service to customers with an unresolved dispute with their supplier or network operator.
The Energy (Miscellaneous Provisions) Act, 2006, assigned to the CER powers to regulate the activities of electrical contractors, natural gas undertakings and gas installers with respect to safety.
The Electricity Regulation Act, 1999 provides for CER’s regulatory independence and accountability for the performance of its functions to a Joint Committee of the Oireachtas.
Full details of the CER’s responsibilities and their legislative underpinning are available on the CER website at www.cer.ie.
145. Deputy Seán Haughey asked the Minister for Transport, Tourism and Sport if the National Transport Authority will provide funding to purchase extra buses for the fleet of Dublin Bus; and if he will make a statement on the matter. [9256/16]
View answerThe NTA has statutory responsibility for the provision of public transport infrastructure in the Greater Dublin Area, including the renewal of the bus fleet in respect of Public Service Obligation (PSO) services operated by Dublin Bus.
The PSO bus fleet replacement and enlargement programme is prioritised under the Government’s Capital Plan 2016-2022 with funding in excess of €500 million being allocated during the lifetime of the programme. This will ensure a more modern, reliable and comfortable PSO fleet and reduce the average age and associated maintenance costs of the fleet.
146. Deputy Clare Daly asked the Minister for Transport, Tourism and Sport if he considered suspending or ending the discretionary exemption from en route charges for the provision of air traffic control and communications services in Irish-administered airspace to military flights during the period of massive cutbacks in State spending from 2008, given that these exemptions for the military flights of countries such as the United States of America cost the Exchequer approximately €2 million to €3 million each year. [9266/16]
View answerThe current exemption arrangements stem from Ireland's membership of Eurocontrol, a European intergovernmental organisation established in 1960 for the safety of Air Navigation. The collaborative and cooperative approaches inherent in Ireland's membership of Eurocontrol since 1965 bestows considerable, wider aviation safety and economic benefits to Ireland.
In common with most of Eurocontrol's 41 Member States, Ireland exempts military flights of Member States of Eurocontrol, the United States and Canada from payment of en route air navigation charges. This arrangement has applied since Ireland joined the Eurocontrol en route charging scheme in the 1970s. Given the wider benefits of Eurocontrol membership, the long-standing and well-established nature of these arrangements, together with the reciprocity provided to Ireland by other participating States, the suspension or ending of the current exemption arrangements was not considered justified in the period referred to by the Deputy. There are no plans at present to alter the current policy.
