Dáil Éireann Debate, Thursday - 2 June 2022
136. Deputy Rose Conway-Walsh asked the Minister for the Environment, Climate and Communications when the detail regarding the implementation of the Iberian exception will be published; if he considered the applicability of this approach in the Irish context; and if he will make a statement on the matter. [28482/22]
Amharc ar fhreagraOn 18 May 2022, the European Commission published a communication “Short-Term Energy Market Interventions and Long Term Improvements to the Electricity Market Design – a course for action”. The communication proposes further short-term measures in the gas and electricity sectors to tackle effectively the impact of sustained high energy prices on consumers and companies. One measure identified within the communication relates to subsidising the cost of gas used for power generation, which the Commission highlights, depending on their design may entail significant costs. However, while this measure has been identified in regions with very limited interconnection and where gas has a strong influence on the price of electricity, as is the case in the all-island Single Electricity Market (SEM), it is also considered most effective where consumers are particularly exposed to pass-through wholesale electricity prices. While this is the case in Spain, for example, where a considerable proportion of consumers are on electricity tariffs that are directly linked to the wholesale price, this is not true of the SEM, where very few consumers are on such pass-through tariffs. Irish domestic customer contracts are almost exclusively based on hedged contracts by suppliers, limiting the exposure of customers to sudden increases in wholesale gas costs. We await further detail from the Commission regarding the implementation of this option in Spain and Portugal, which will allow for further consideration by Member States.
