Dáil Éireann Debate, Tuesday - 14 May 2024
139. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the extent to which electricity generation and production costs here are in line with those in other EU member states; and if he will make a statement on the matter. [21840/24]
View answerIn March ACER published their 2024 Market Monitoring Report which contains data through to the end of 2023. It provides a good overview of trends.
• Link to the report: www.acer.europa.eu/sites/default/files/documents/Publications/ACER_2024_MMR_Key_developments_electricity.pdf
• Link to the data: aegis.acer.europa.eu/chest/category/36/list
Ireland is a price taker on international energy markets; the rise in wholesale gas prices since the Russian invasion of Ukraine and the strong correlation between gas and electricity prices has therefore had a direct impact on the cost of electricity here. Due to high gas storage levels, warmer than normal winter conditions and efforts to reduce natural gas demand across Europe, wholesale gas prices have fallen substantially and are currently well below the peak values of August 2022. However, wholesale gas prices are still trading significantly above their pre-pandemic levels, which ultimately reflects in the price of electricity given the large volume of gas fired generation capacity we have in Ireland.
There are several other long-standing reasons why Irish electricity prices have been higher than those of many other EU countries, including our widely-dispersed population, our historic dependence on fossil fuels, the small size of our market and our peripheral location. The Government has adopted policies that in the long-term will protect Irish consumers from volatility in wholesale energy markets, by investing in renewable energy technology, improving the energy efficiency of buildings, and deepening interconnection with European energy markets.
The Commission for Regulation of Utilities (CRU) was assigned consumer protection functions under the 1999 Electricity Regulation Act and subsequent legislation and has statutory responsibility for the compliance by energy suppliers with their consumer protection obligations. The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial and liberalised. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets is solely a matter for the CRU.
CRU provides a dedicated email address for Oireachtas members, which enables them to raise questions on general energy regulatory matters to CRU at oireachtas@cru.ie for timely direct reply
