Dáil Éireann Debate, Thursday - 15 June 2023
109. Deputy Colm Brophy asked the Minister for the Environment, Climate and Communications if he is concerned at the deviation in trends between wholesale gas and electricity prices and what consumers are paying; and if he will make a statement on the matter. [28745/23]
View answerElectricity and gas retail markets in Ireland operate within a European regulatory regime wherein these markets are commercial, liberalised, and competitive with the market being overseen by the Commission for the Regulation of Utilities (CRU).
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%. While wholesale gas prices have fallen dramatically and are currently well below the peak values of last year. However, they are still trading at twice their pre-pandemic levels.
Ireland faces particular challenges in this regard as we are a price taker on international markets and Irish electricity and gas prices have historically been affected by long standing drivers such as geographical isolation and low levels of interconnection comparable to Europe, dispersed population, fossil fuel dependency and small market scale.
Retail gas and electricity prices, based upon an estimated annual bill are 107% higher for gas and 90% for electricity this June vs June 2021. The difference in the volatility of wholesale and retail prices demonstrates the importance of supplier hedging strategies and the extent to which these strategies shield consumers against the full extent of this unprecedented international energy market volatility. My Department is advised by the CRU that 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.
As Minister I meet with a range of stakeholders on important topics including energy prices. This includes energy suppliers. In addition to my interactions, my officials meet with suppliers on a regular basis and a key message to them is the critical importance of prices being reduced as soon as possible.
