Dáil Éireann Debate, Tuesday - 26 September 2023
118. Deputy Ivana Bacik asked the Minister for the Environment, Climate and Communications if he will make a statement on projections by the CRU that energy prices are unlikely to return to 2020 levels; and if he plans to legislate to require energy providers to pass on the benefit of reduced wholesale prices to consumers; and if he will make a statement on the matter. [41619/23]
View answerThe electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive.
Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets, is solely a matter for the Commission for Regulation of Utilities (CRU), which was assigned responsibility for the regulation of the Irish electricity and gas markets following the enactment of the Electricity Regulation Act (ERA), 1999.
Although there has been a welcome reduction in wholesale gas prices in Europe prices remain significantly higher than pre-crisis levels.
In the past weeks, price reductions have been announced by the main energy suppliers who share approximately 98% of both the retail electricity market and the retail gas market in Ireland. These suppliers have announced price reductions between 9 and 30% and customers can expect to see this reflected in retail bills (for households and businesses) over coming months.
However, supplier hedging that results in a significant proportion of energy purchased several months in advance may impact the ability of suppliers to reduce prices, notwithstanding the decline in the wholesale cost of gas.
Customers struggling with their bills are strongly encouraged to engage with their supplier. I understand suppliers will not disconnect customers that continue to engage with them and that suppliers have additional customers supports in place, including hardship funds. An Taoiseach and I recently met with the heads of the main energy suppliers, who confirmed that this support will continue through winter 2023/24.
Given that prices are no longer regulated, they are set by all suppliers as entirely commercial and operational matters by them. The CRU is held accountable by the Joint Oireachtas Committee on Environment and Climate Action and not the Minister. The Deputy may wish to note that CRU provides a dedicated email address for Oireachtas members, which enables them raise questions on general energy regulatory matters to CRU at oireachtas@cru.ie for timely direct reply.
