Dáil Éireann Debate, Thursday - 27 April 2023
200. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the measures being taken to ensure that the ESB and other energy providers pass any reduction in price inflation to the consumer as quickly as possible and if he will make a statement on the matter. [20169/23]
View answerHigh energy prices are a very serious concern to Government which is why a range of measures have been implemented, most recently the €1.2 billion package, announced in February, which extended the VAT reduction on electricity and gas until the end of October. This is in addition to the measures announced in Budget 2023 which introduced €2.5 billion of once of cost of living supports to protect households from high energy costs. This included three €200 (VAT inclusive) Electricity Costs Emergency Benefit Payments, bringing the total support given under the two Electricity Benefit Schemes to over 2.1 million domestic electricity accounts to €1.5 billion in 2022. This was alongside the €400 lump sum payment to Fuel Allowance recipients, bringing the total payment for the 2022/3 winter to 1,324.
Wholesale energy prices reached peak levels in August of last year, when wholesale gas prices were 706% higher than January 2021, while wholesale electricity prices increased by 463%. Due to high gas storage levels, warmer than normal winter conditions and efforts to reduce natural gas demand across Europe, wholesale gas prices have fallen dramatically and are currently well below the peak values of last year. However, wholesale gas prices are still trading at twice their pre-pandemic levels.
Based upon an estimated annual bill retail gas and electricity prices , were 138% higher for gas and 98% for electricity in January 2023 vs January 2021. The difference in the level and speed of fluctuation in the wholesale market vs. that of retail prices demonstrates the importance of supplier hedging strategies and the extent to which these strategies shield consumers against the full extent of this utterly unprecedented international energy market volatility. Retail prices are likely to remain at current levels for some time. This will vary from supplier to supplier, based on their current hedging and retail price positions.
However, the retail electricity and gas markets are commercial and price setting is a matter for individual suppliers. Responsibility for the regulation of the retail gas and electricity markets was assigned to the Commission for the Regulation of Utilities (CRU) under the 1999 Electricity Regulation Act and subsequent legislation. CRU is accountable to the Oireachtas and not to me as Minister. CRU has a dedicated email address for Oireachtas members to contact them at: oireachtas@cru.ie.
