Dáil Éireann Debate, Thursday - 5 July 2018
180. Deputy Micheál Martin asked the Minister for Business, Enterprise and Innovation her views on the recent announcement that electricity prices will increase by 6.5%; the impact this will have on bills for homes and the small and medium enterprise sector; the steps she will take on same; and if she will make a statement on the matter. [29862/18]
View answerCompetitively priced supply of energy is vital for business and its ability to compete successfully in domestic and international markets. The openness of our economy and the high dependence on imported fossil fuels makes Ireland’s energy prices vulnerable to substantial oil price fluctuations.
Addressing Ireland’s cost competitiveness remains a key economic priority for my Department and we continue to monitor Ireland's cost competitiveness on a regular basis. The Ireland’s Competitiveness Scorecard 2018 Report, which will be published shortly by the National Completeness Council, finds that average electricity and gas prices for business increased in the second half of 2017. Higher energy costs increase firms' input costs, thereby reducing profitability, all else being equal. At the household level, higher energy prices result in higher consumer prices.
There are limits to the extent to which policymakers or regulators can, or indeed should, intervene to influence prices in competitive markets. In terms of ensuring our cost competitiveness, there is a role for both the public and private sectors alike to proactively manage the controllable portion of their respective cost bases, drive efficiency and continue to take action to address unnecessarily high costs. Such actions will ensure that improvements in relative cost competitiveness are more sustainable, leaving Ireland better positioned to cope with external shocks.
