Dáil Éireann Debate, Tuesday - 25 July 2023
1. Deputy Darren O'Rourke asked the Taoiseach his views on his comments (details supplied) that he expected that energy prices would remain very high this winter; what informed this conclusion; how many times he met with energy companies to discuss this; and if he will report on these meetings. [34871/23]
View answer2. Deputy Darren O'Rourke asked the Taoiseach his views on his comments (details supplied) that he expected that energy prices would remain very high this winter; what informed this conclusion; and how many times he has met with the Commission for the Regulation of Utilities to discuss this. [34872/23]
View answerI propose to take Questions Nos. 1 and 2 together.
Russia’s invasion of Ukraine has brought about a new energy awareness across Europe. The resultant shock is still being felt through higher fuel prices and has underlined the importance of accelerating the switch to indigenous, renewable energy systems and reducing reliance on imported fossil fuels. Budget 2023 included diverse measures to help offset rising energy bills for households and businesses.
The Minister for the Environment, Climate and Communications has responsibility for Energy Policy and he and his Department are in regular contact with energy companies. A key message made to them through these meetings is the critical importance of consumer prices being reduced as soon as possible. The Minister regularly briefs me and cabinet colleagues on developments in this area.
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 rather than to the Minister for the Environment, Climate and Communication.
The most significant factor affecting retail electricity and gas prices in Ireland remains the wholesale price of gas. While wholesale prices have reduced from their peak in August 2022 they are still trading significantly above their pre-pandemic levels. A sustained period of lower wholesale prices may be required before retail prices fall, as a result of supplier hedging strategies.
Budget 2023 included a set of all-of-Government policies to offset rising energy bills.
An enhanced electricity credit of €600 was applied to electricity bills. This benefitted all Irish households, with a total value of €1.3 billion. This credit was supplemented by a group of targeted cross-Government policies aimed at protecting those most at risk of fuel poverty.
For example, revisions to eligibility criteria has seen more families and households qualify for the Fuel Allowance, as well as significant lump sum payments.
The Government is acutely aware of the importance of protecting jobs, in order to protect families, during this energy crisis and this has been important in the design of the Temporary Business Energy Support Scheme (TBESS), which has been providing up to €10,000 per business per month– to help meet rising energy costs. The scheme helps eligible companies, covering 40% of the increase in their energy bills.
On 06 July, I, along with the Tánaiste, the Minister the Environment, Climate and Communications, convened an Energy Summit at Government Buildings. The Minister for Enterprise, Trade and Employment also participated.
The Summit brought together representatives from the private, public and voluntary sectors to discuss Ireland’s decarbonisation of its energy systems. The Summit provided an opportunity for participants, whose combined efforts will be vital to delivering Ireland’s climate and energy policies, to discuss how best to position Ireland to reap the environmental, economic and social benefits of moving away from fossil fuels and towards indigenous, renewable energy sources. Participants were also able to share their perspectives and ideas on how the transition can be most effectively undertaken.
