Oireachtas Joint and Select Committees

Wednesday, 21 November 2012

Joint Oireachtas Committee on Transport and Communications

Regulation of Energy Sector: Discussion with CER

10:40 am

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I thank the commission for attending the committee and for its presentation. Energy prices are a major issue as they are constantly spiralling up. I was in correspondence with the commission before about an increase in ESB prices several months ago. Subsequently, the ESB announced it had a half yearly profit of €230 million and was facing a €500 million profit for the full year. The perception is that this substantial profit is being generated by a semi-State body on the backs of the householders. How can the commission, as the public watchdog and the custodian of the consumer, both private and commercial, allow the ESB to get a price increase with such an enormous profit?

Over the past several weeks, we have seen some media reports about the possible rigging of gas prices on the international wholesale market and in the City of London. The commission earlier alluded to the fact that 55% to 60% of the ESB's costs come from gas prices. I hope the commission is following up on this possibility of gas prices being rigged. Has the commission any views on this?

The committee has been in correspondence with the commission on the unprofessional work done by gas installers, an issue raised with us by a plumbers' umbrella body. The commission in its reply stated that unless it was brought specifically to its attention, then it cannot move on it. There needs to be greater awareness of this issue as I believe a serious accident could happen if it is not tackled.

One major issue we as public representatives encounter is that of people not being able to pay their electricity or gas bills. In the commission's experience, what is the level of fuel poverty? Every public representative has been in negotiations with some utility company to ensure someone's arrears are reduced. Does the commission have any figures on disconnections because of unpaid bills?

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