Dáil Éireann Debate, Tuesday - 22 November 2022
174. Deputy Mairéad Farrell asked the Minister for the Environment, Climate and Communications the rural and urban standing charges on electricity bills; the reason for the difference; and if he will make a statement on the matter. [57396/22]
View answerThe unprecedented increase in international wholesale gas prices have continued as result of the volatility in the international gas market driven by 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. The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets, including the matters raised by your question, is solely a matter for the Commission for Regulation of Utilities (CRU), which was assigned responsibility for the regulation of the Irish electricity and gas markets following the enactment of the Electricity Regulation Act (ERA), 1999. I understand, electricity customers are allocated to a Distribution Use of System (DUoS) Group (DG). Urban customers are in DG1, while rural customers are in DG 2. This is done and set out as part of the connection agreement. All electricity users pay a DUoS charge, which is set by the CRU and paid through electricity bills. The charge for rural customers is higher than urban due to factors such as population dispersal. Details of these charges are set out in the following CRU Decision Paper: CRU202291-Tariff-Review-2022_2023-Response-and-Decision-Paper-FINAL.pdf
The CRU provides a dedicated email address for Oireachtas members, which enables them raise questions on energy regulatory matters, such as the matter raised in this question, to CRU at oireachtas@cru.ie for timely direct reply .
