Dáil Éireann Debate, Wednesday - 29 September 2010
1741 Deputy Leo Varadkar asked the Minister for Enterprise, Trade and Innovation the findings of studies carried out by his Department and its agencies on electricity prices here; the amount they exceed the EU and eurozone average; the impact of electricity prices on competitiveness; and if he will make a statement on the matter. [33200/10]
Amharc ar fhreagraThe National Competitiveness Council, whose work is underpinned by research and analysis carried out by Forfas, examined electricity costs as part of its "Costs of Doing Business in Ireland 2010” report, which was published last July. The report benchmarked industrial electricity prices for large energy users and for Small and Medium-sized Enterprises (SMEs) against a number of other EU Member States and the Euro area for 2009.
The report shows that in 2009, the cost of electricity for high energy users in Ireland decreased by 24%, the largest decrease amongst the benchmarked locations. The gap between Ireland and the Euro area average in 2009 was 5%, representing a significant improvement from the second half of 2008 when Irish electricity prices were 37% higher than the Euro area average. Electricity costs for SMEs decreased by 17% in 2009, again the largest decrease amongst the benchmarked locations. The gap between Ireland and the Euro area for SME electricity costs in 2009 was 15%, down from a gap of 36% the previous year Comparisons with the EU average as a whole are not available in the Competitiveness Council report.
Electricity prices have an impact on competitiveness and that is why the Government is working to ensure that we have a competitive, secure and sustainable energy sector to support the economy. This objective is being facilitated by increased competition in the sector and by significant capital investment in the national grid. Other measures in place include grants for energy efficient products, supports for renewable energy providers, and support services offered by the Sustainable Energy Authority of Ireland (SEAI) to companies to assist them in reducing their energy bills.
