Dáil Éireann Debate, Thursday - 13 July 2023
131. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he is aware that wholesale electricity prices fell by 35% in June 2023 (details supplied); when he expects this will be passed on to the final customer; and if he will make a statement on the matter. [34868/23]
View answer132. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he was aware of comments made by the Taoiseach that energy prices would remain very high this winter; how many times he has met with the Commission for the Regulation of Utilities to discuss this; if he will report on these meetings (details supplied); and if he will make a statement on the matter. [34873/23]
View answer133. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he was aware of comments (details supplied) made by the Taoiseach that energy prices would remain very high this winter; how many times he has met with energy companies to discuss this; if he will report on these meetings; and if he will make a statement on the matter. [34874/23]
View answer134. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will report on the wholesale price of energy; if he expects the price of gas and electricity to fall; what has informed his conclusion; and if he will make a statement on the matter. [34875/23]
View answer135. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications what reliefs will be put in place for high energy prices, and when; and if he will make a statement on the matter. [34876/23]
View answer136. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he is aware that the easing in energy prices inflation for consumers in Ireland has to date lagged in the euro area as a whole (details supplied); what his plans are to address this; and if he will make a statement on the matter. [34877/23]
View answer147. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will provide an update on his public comments (details supplied) that he expects energy bills to fall from this autumn; how this conclusion was informed; if he has met energy firms to discuss this; and how much he anticipates they will decrease by. [34915/23]
View answer185. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he has discussed with energy providers what proportion of the wholesale energy they use is hedged; if so, to report on this; if not, if he has plans to do so; and if he will make a statement on the matter. [35149/23]
View answerI propose to take Questions Nos. 131 to 136, inclusive, 147 and 185 together.
My clear message to energy suppliers is that prices for customers should be reduced at the earliest opportunity.
Unprecedented increases in energy prices since the outbreak of War in Ukraine has led the Government to take sustained action over the past year to support households and businesses to meet the cost-of-living challenges. Direct measures to reduce energy bills include the €800 in total of energy credits between April 2022 and April 2023, reductions in VAT and the Temporary Business Support Scheme.
Electricity 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). As part of its role CRU is monitoring the implementation of the strengthened consumer protection measures put in place for the winter period.
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, 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. This will vary from supplier to supplier, based on their current hedging and retail price positions.
I have recently written to the regulator, requesting that they investigate the pricing strategies in place, taking account of the hedging strategies of the electricity market participants. As part of this investigation, I have asked CRU to ascertain if there have been any market failures, particularly where vulnerable customers are concerned.
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.
