Dáil Éireann Debate, Thursday - 7 April 2022
128. Deputy Neale Richmond asked the Minister for the Environment, Climate and Communications the impact that Russia’s invasion of Ukraine has had on Ireland’s energy sector; and if he will make a statement on the matter. [18740/22]
View answer145. Deputy Richard Bruton asked the Minister for the Environment, Climate and Communications the measures that he is contemplating which might strengthen Irish resilience in the face of explosion in the cost of oil and gas. [18484/22]
View answerI propose to take Questions Nos. 128 and 145 together.
Government is acutely aware of rising electricity and gas prices and its affects on households. The most immediate factor affecting electricity prices in Ireland is high international gas prices where we are a price taker. In Europe, wholesale natural gas prices have risen and remained high since the second half of 2020. Gas prices are now at historically high levels. The increase in international wholesale gas prices, have continued to be driven by the volatility in the international gas market linked to the Russian invasion of Ukraine and the on-going war. These gas increases feed directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas. Government’s response to the current surge in international gas prices has been to utilise the tax and social welfare system in Budget 22 to counter rising costs of living for households. Additionally, and in recognition of the ongoing inflationary pressures on households, the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022 provides for a credit payment to each domestic electricity account amounting to €200 (including VAT). Approximately 2.1 million account holders will benefit from the payment in the coming weeks. This was one of a range of new measures as part of a €505m package of measures to mitigate the wider cost of living increases announced by Government on the 10th February. The conflict in Ukraine has led to sharp increases on international oil markets from late February onwards. This fed directly into higher pump prices and the Government responded on the 8th March with Excise reductions which amounted to 20 cent per litre for petrol and 15 cent per litre for diesel.
