Dáil Éireann Debate, Thursday - 7 April 2022
124. Deputy Rose Conway-Walsh asked the Minister for the Environment, Climate and Communications if there is a price point for gas or other fossil fuels at which it would be necessary to consider decoupling high-priced hydrocarbons from setting the overall wholesale electricity price; and if he will make a statement on the matter. [18683/22]
View answerA well-functioning EU-electricity market remains crucial for the integration of our Internal Energy Market and for providing investment signals for the integration of new renewables, which are essential to ultimately break our dependence on fossil fuels. We should not depart from the competitive principles of our market design, which would undermine the cost-effective decarbonisation of our energy system, jeopardise affordability and risk security of supply. On 15 and 17 November 2021 respectively, the Agency for the Cooperation of Energy Regulators (ACER) and the European Securities and Markets Authority (ESMA) issued their preliminary reports on the functioning of the energy and carbon markets. Final reports are expected this month. ACER noted that any changes to the current wholesale market design require careful consideration so as not to inadvertently impact the ability of the framework to drive desired EU-wide changes, such as cost-efficient decarbonisation, over the medium and longer term, while ESMA’s preliminary analysis does not indicate that the market is not functioning as it should. We need to take into account the final report by ACER before considering any new measures in the wholesale electricity market design to avoid the risk of unanticipated or unintended consequences.
The best long-term approach for Ireland to insulate consumers from volatility on international wholesale energy markets is to invest in energy efficiency and renewable energy. Improving our energy efficiency, cutting our dependence on fossil fuels and generating power from our own renewable sources will ensure a cleaner, cheaper energy future in the long term. Electricity and gas retail markets in Ireland operate within a European regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. Responsibility for the regulation of the electricity and gas markets is solely a matter for the Commission for Regulation of Utilities (CRU).
