Dáil Éireann Debate, Wednesday - 24 January 2024
71. Deputy Aindrias Moynihan asked the Minister for the Environment, Climate and Communications what engagement he has had with electric energy providers for domestic users in ensuring further domestic electric cost reductions, given the recent figures on energy provided by wind; and if he will make a statement on the matter. [3318/24]
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 Regulation of Utilities (CRU). Wholesale energy prices reached peak levels in August of 2022, when wholesale gas prices were 706% higher than January 2021, while wholesale electricity prices had increased by 463%. While wholesale gas prices have fallen substantially and are currently well below their peak values, they are still trading significantly above 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.
The effect of falling wholesale prices is now being seen in household energy bills. Since December, several major suppliers have announced reductions of up to 12.8% on standard unit rates. This is in addition to price drops of between 9 and 30% introduced in Autumn 2023 by suppliers who make approximately 98% of the retail electricity market in Ireland and 98% of the retail gas market.
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 ensuring that lower wholesale prices result in lower household bills.
