Dáil Éireann Debate, Tuesday - 19 October 2021
257. Deputy John Brady asked the Minister for the Environment, Climate and Communications if his attention has been drawn to the fact that some energy companies have stated that they will be increasing their standing charges by €30; if he has engaged with the Commission for the Regulation of Utilities on the issue and if he will make a statement on the matter. [50475/21]
Amharc ar fhreagraThe 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, including the matters raised by the Deputy, 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. The CRU is an independent statutory regulator and is accountable for the performance of its functions to the Oireachtas, and not to me as Minister.
In line with long standing policy on deregulating price setting, CRU ended its regulation of retail prices in the electricity market in 2011, and in the gas market in 2014. Given that prices are no longer regulated, they are set by all suppliers as entirely commercial and operational matters by them. Each such company has its own different approach to pricing decisions over time, in accordance with factors such as their overall company strategic direction and developments in their cost base. Suppliers reflect their costs in the form of standing charges and unit charges. The standing charge is a fixed daily cost on a bill reflecting a combination of the fixed charges associated with providing and maintaining the supply of electricity, the collection of meter readings and a share of the supplier costs in servicing customer accounts. A low usage charge may also apply where a customer uses two units or less of electricity on average per day in a billing period. The position of successive Governments, for almost twenty years, has been that competitive energy markets result in greater choice for consumers and businesses, in terms of suppliers, products and prices and to support competition to drive down prices. Data from approved price comparison sites shows that consumers can make significant savings by switching energy suppliers and this can mitigate for consumers the impact of price rises. Switching supplier could save a customer consuming the average amount of electricity up to €285.46 on an annual electricity bill (comparison made on 18 October 2021 using a CRU accredited price comparison website). The Deputy may wish to note that CRU provides a dedicated email address for Oireachtas members, which enables them raise questions on energy regulatory matters, such as the matter raised in this question, to CRU at oireachtas@cru.ie for timely direct reply.
