Dáil Éireann Debate, Thursday - 10 February 2022
51. Deputy Christopher O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has plans to introduce measures to help businesses deal with increased electricity costs; and if he will make a statement on the matter. [7005/22]
Amharc ar fhreagraWholesale and retail energy costs, electricity and natural gas, have risen significantly over the past year, primarily driven by the market price for natural gas internationally. The global natural gas price spiked in December, and has been volatile since, due to a combination of international geopolitical factors, lower-than-usual reserves, and regional supply chain and weather issues.
I am extremely conscious of the pressure that high and volatile electricity costs can put on a business, particularly small enterprises, those with tight margins and those particularly dependent on certain fuels.Energy bills can be an inflexible component of the cost base of a business in the short-term; and in certain energy intensive sectors, these are a key element of competitiveness.
Energy costs are volatile historically. Ireland is particularly dependent on natural gas for electricity generation, heating and industry, and therefore recent international price spikes are a cause for concern for the Government and a threat to competitiveness. However, these increases are unlikely to last indefinitely as the market responds. Recent global price volatility for fuels is yet another reminder that our society and our businesses should increasingly be looking to reduce our exposure to fossil fuels.
The electricity and gas retail markets in Ireland operate within a European Union regulatory regime in which 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, 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. 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 for timely direct reply.
To deliver price competitiveness over the medium-term, Government is determined to deliver a diversified energy system, with significant support for energy efficiency and renewables, alongside independent regulation that protects consumers and delivers efficient, competitive energy retail and wholesale markets.
There are a range of incentives and advice available to business to help them use energy efficiently, diversify their fuel use and switch to renewable energy sources. Small businesses can currently receive an energy audit voucher from SEAI to get professional advice on how to increase efficiency and reduce their costs. Other financial supports include incentives for electric vehicles, the Support Scheme for Renewable Heat, grants for microgeneration, the EXCEED programme, as well as GreenStart and GreenPlus programmes available from Enterprise Ireland and IDA Ireland. The Green 4 Micro programme from Local Enterprise Offices can also provide advice on energy efficiency and renewables. In December I launched an online portal - the 'Climate Toolkit 4 Business' - which helps businesses to measure their carbon footprint, develop an action plan and navigate the available assistance.
