Oireachtas Joint and Select Committees

Wednesday, 11 December 2013

Committee on Transport and Communications: Select Sub-Committee on Transport, Tourism and Sport

Rationale for Sanctioning Energy Price Increases: Discussion with Commission for Energy Regulation

2:40 pm

Mr. Paul McGowan:

We can find out those numbers. On social affordability, the only residential tariff we set is the gas price. We do not have a social tariff system in Ireland. In setting the gas price, our role is to examine all aspects of cost, including the networks, gas price and cost of supply, to ensure they are as low as practicable in the circumstances. Social welfare schemes, such as the free gas and free electricity allowances, deal with people's ability to pay, and those are outside our remit and outside the energy market.

The fall-off in switching was mentioned. We would like to see healthier levels of switching across the piece, but the gas switching level of 17% is regarded as a healthy level of switching at a European level. The level of switching in the electricity market is lower than it was but is still above the threshold we set in terms of the indicators for there being enough competition in the market for us to deregulate. It is lower than it was. One factor in that was that there were some very successful marketing campaigns by certain suppliers in the market two or three years ago and that generated a very high level of switching. Perhaps that level of marketing is not there now, but at 10% or 11% it is still a reasonably high level of switching.

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