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Energy Prices

Dáil Éireann Debate, Thursday - 7 April 2022

Thursday, 7 April 2022

Ceisteanna (189, 204, 205, 213, 220)

Seán Haughey

Ceist:

189. Deputy Seán Haughey asked the Minister for the Environment, Climate and Communications if his attention has been drawn to gas and electricity providers substantially increasing standing charges in recent weeks; if he will intervene with these companies with a view to having these standing charges reduced given that the Commission for the Regulation of Utilities has no role to play in respect of these standing charges; and if he will make a statement on the matter. [18919/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

204. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the extent to which it can be found possible in the short-term to ensure that the ESB and other energy providers do not pass price inflation to the consumer; and if he will make a statement on the matter. [19114/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

205. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the extent to which he can protect energy users from price hikes which are not directly related to such issues as the war in Ukraine or other difficulties; and if he will make a statement on the matter. [19115/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

213. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the extent to which he expects to be in a position to protect the consumer from rising energy prices; and if he will make a statement on the matter. [19123/22]

Amharc ar fhreagra

Brendan Smith

Ceist:

220. Deputy Brendan Smith asked the Minister for the Environment, Climate and Communications when further financial support will be provided to consumers in respect of the increase in energy costs; and if he will make a statement on the matter. [19214/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Nos. 189, 204, 205, 206, 213 and 204 together.Government is acutely aware of rising electricity and gas prices and its affects on households. The 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, 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. 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.The most immediate factor affecting electricity prices in Ireland is high international gas prices where we are a price taker. In Europe, wholesale natural gas prices have risen and remained high since the second half of 2020. Gas prices are now at historically high levels. The increase in international wholesale gas prices, have continued to be driven by the volatility in the international gas market linked to the Russian invasion of Ukraine and the on-going war. These gas increases feed directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas.Government’s response to the current surge in international gas prices has been to utilise the tax and social welfare system in Budget 22 to counter rising costs of living for households. Additionally, and in recognition of the ongoing inflationary pressures on households, the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022 provides for a credit payment to each domestic electricity account amounting to €200 (including VAT). Approximately 2.25 million accounts  will benefit from the payment in the coming weeks. This was one of a range of new measures as part of a €505m package of measures to mitigate the wider cost of living increases announced by Government on the 10th February.

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