Dáil Éireann Debate, Thursday - 16 November 2023
108. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the extent to which it can be found possible to ensure that electricity providers pass on any further reduction in price inflation to the consumer as quickly as possible; and if he will make a statement on the matter. [50485/23]
View answerIn 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.
I recently wrote to the CRU, requesting that a review of the pricing (and hedging) strategies be carried out – to ascertain if there have been any market failures (particularly in the case of vulnerable customers). The CRU published their report on 19 September 2023, and outlined that it sees no evidence of market failure in the retail markets and that it will continue monitoring this.
The Budget package includes a new Electricity Cost Emergency Benefit Scheme through which €412.83 (exclusive of VAT) will be credited to each domestic electricity account in three payments of €137.61 (exclusive of VAT) in each of the following billing periods - December 2023, January/February 2024 and March/April 2024, having regard to the fact that the average price of electricity and gas is still significantly higher for households compared to pre-energy crisis levels. The estimated cost of this scheme is €1.007 billion.
The payment will be applied to domestic electricity accounts, including those with Pay As You Go meters, which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2).
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.
