Michael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

Cuirim fáilte mór roimh an CER and thank its representatives for coming before the committee today. I have six questions. I preface my remarks by saying that sometimes we put questions to witnesses when we should be putting them to ourselves, because we are the people who decide on legislation and determine policy.

The Gas Regulation Bill 2013 passing through the Houses allows for the privatisation of Bord Gáis Energy. I fear this increases the risk of large price hikes and the prevalence of fuel poverty. I am sure the CER is aware of the rumblings of price fixing between the big six in the British market and I fear we face the same risk here. Will Mr. Nolan talk us through how these concerns will be addressed?

I get confused when I look at claims regarding electricity price increases. The Society of St. Vincent de Paul states it paid €10.4 million in 2011 for households that could not pay their electricity charges. That sum is 25% of what the society pays out in total. In 2008, the amount it paid out was €3.8 million. A major factor in this increase is that people's incomes have been dramatically reduced over the years, but there has been an increase of approximately €500 per household in energy bills over the past three years. However, when we look at the percentage increase figures issued, they state the increase is 2.04% or similar. This does not seem as if it could amount to €500 per household over the past three years. Am I reading this wrong or are there different measurements being used by different bodies?

Does the CER have any input into regulation of or has it any control of the price of connecting to the national grid? I am aware of a person in Monaghan who invested a good deal of his money in developing a biomass project. This project could work wonders at reducing the amount of waste for landfill and could provide significant industry in such a rural area. Everything was going swimmingly with the project until this person began to inquire about the cost of connecting to the national grid. He was quoted a cost of €500,000, which meant the project could go nowhere. My concern is that while we say the right words regarding micro generation, we are not serious about it. We are so blinded by the headline projects that we forget about the micro ones. Does the CER have any input or responsibility for the cost of connection to the national grid? Is a change required in this regard?

Until quite recently, I was not aware of the need for so-called security deposits for small industries. A man who runs a hotel in the north east was billed for a €15,000 security deposit, despite the fact he had been with the company for a number of years. He assures me he always paid his bills promptly, but he received a bill for a security deposit of €15,000. He did not have that money available to pay straight away, but the company came to disconnect his hotel, despite the fact there were guests in it and despite the fact the owner had paid his bills on time for the previous two years or so. I believe this practice is wrong. A security deposit should not be handled in the same way as an outstanding bill. Also, in the context of being able to switch suppliers, because the €15,000 showed as a debt against his business, the potential for this man to switch was zero. He had to go to the bank to get the money and pay company so that his supply would be maintained. This practice is wrong and is anti-business. It is certainly anti-small business.

My next question concerns the CER's view on consumer prices, which has been partly answered. Part of my question related to the situation if renewable energy development is accelerated. What does the CER feel the impact would be on electricity prices if fracking for shale gas or nuclear energy is permitted in this country? Does the CER have people working with it who can look at what is happening in these markets? Is the CER aware that the realistic lifetime of a fracking well is not 20 years, as claimed, but only four or five years? What is the role of the CER in regard to this and how does it see fracking for shale gas impacting on prices if it is permitted here?

If Ireland or any nation tries to ride the two horses of renewable energy and, for example, shale gas development, one or both will suffer.

We cannot afford to ride the two horses. I am concerned renewable energy will suffer for the short-term gain available from other energy sources. I would like to hear the witnesses' views on this.