Dáil Éireann Debate, Wednesday - 8 March 2023
44. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment if his Department is liaising with IDA Ireland and the Department of the Environment, Climate and Communications to ensure that business energy costs can be reduced through the EU reform of the electricity market; and if he will make a statement on the matter. [11902/23]
View answerI and my officials engage regularly with our national enterprise development agencies, including IDA Ireland, and directly with business stakeholders on the issues that impact on them. I am extremely conscious that current high energy prices are placing a strain on many businesses. As the Deputy alludes to, the cost of electricity for businesses is a concern from a competitiveness and resilience perspective for Ireland’s economy. A broad range of measures is being progressed to mitigate the pain of these increases in the short-term while investing in a secure and competitive energy market for the medium and long-term.
For example, last week I Government announced changes to the Temporary Business Energy Support Scheme (TBESS) to make it more accessible for businesses, with further changes to increase the level of support pending State Aid approval. I'm encouraging all businesses dealing with electricity or gas costs that have risen by more than 50% to apply immediately for support.
To deliver greater energy price competitiveness and stability over the medium-term, the Government plans to deliver a more diversified and secure energy system. Significant support for energy efficiency and a large volume of domestic renewable energy, alongside independent regulation that protects consumers will further deliver efficient, competitive energy prices in retail and wholesale markets.
My colleague, Eamonn Ryan, Minister for the Environment, Climate and Communications is leading on EU proposals for electricity market reform, engaging the Commission and Member States energy Ministers. The European Commission launched a public consultation into electricity market reform on 23rd January and Ireland submitted a position paper on the 13th February which can be accessed at gov.ie. The Government is supportive of reform proposals, and we will look to ensure that reforms incorporate the competitive principles in any revised market design. It is appropriate to look at the market design with a view to improving it particularly in context of increased renewables on our system, protecting our security of supply and ensuring competitive pricing for consumers. We need to strike the right balance in relation to investment opportunities to accommodate increasing renewable penetration, as well as flexibility signals for storage, demand side response and back up generation technologies. Ireland's position is that it is critical for market design and energy market contracts to operate such that consumers receive the full direct benefit of low-cost renewable energy sources such as solar and wind. The Commission has indicated that it will publish a proposal around 16th March, which is welcome.
