Dáil Éireann Debate, Thursday - 29 September 2022
78. Deputy Fergus O'Dowd asked the Minister for the Environment, Climate and Communications if he plans to address the matter of energy suppliers and the extortionate standing charges that in some cases have increased dramatically, given many tens of thousands of smart meters are currently being installed, which should lower any standing charge; and if he will make a statement on the matter. [47693/22]
Amharc ar fhreagraThe unprecedented increase and volatility in international wholesale gas market prices has continued as a result of the Russian invasion of Ukraine. This in turn has led to increases in energy bills given the link between the wholesale price of gas and electricity prices.
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, 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.
The National Smart Metering Programme will roll out and install 2.3 million meters by 2025 and in the process make available new products and services to energy consumers. It is co-ordinated by the Commission for the Regulation of Utilities (CRU) with ESB Networks (ESBN) delivering the electricity meter rollout.
The meter rollout is taking place on a phased basis, with around 40,000 meters installed monthly and over 950,000 smart meters installed to date to mainly domestic and small commercial customers. This means that the smart metering programme is now reaching a critical mass of installations. The next step will be for customers to be able to access their metering data directly from ESB Networks through a customer portal which is due to become available in November. This will be an important step in the process of activating the benefits of smart metering. The 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.
