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

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent) | Oireachtas source

The witnesses spoke about the role of the CER, energy cost drivers and latest energy trends. I have heard some of their responses to members' questions but have missed other responses because I had to leave the meeting to attend other business.

CER may become the regulator for Irish Water. I hope it does not get this role because I am not satisfied with its record in regulating energy providers. I recently travelled with several of my colleagues to a European country which forced all the suppliers to reduce their prices. The country's President made the decision that prices should be cut by 33%. In the context of the current recession, the most up to date figures by SEAI for 2012 show increase after increase despite the fact that businesses are suffering. I am a small businessman. The figures for businesses show they have had to endure frightening increases. We are trying to build a competitive economy and good value but the increases keep coming. Bord Gáis recently applied for an increase of 5.43% but CER only agreed to 2.4%. That is coming on top of other increases. Other countries can force companies to cut prices. When we visited the aforementioned country we asked how utilities will be affected and whether companies will be able to reinvest but people are lining up to take over the utility companies. We are being led a merry dance and CER is ineffectual.

I hope it is not given responsibility for Irish Water because the only good thing about Irish Water is the name, An Bord Uisce. I do not agree with the decision to establish it because it will take away control and knowledge from local authorities, as happened with the HSE, SUSI and the driving licence fiasco. Ordinary people are paying their bills. Many people have been disconnected. I disagree with the way that issue has been addressed. It is not possible to argue over a bill; one must pay it. Even when one pays it, one's credit rating is affected. One cannot move anywhere else. CER needs to be more robust because it is not doing the business for the consumer or the business person.

Deputy Ann Phelan asked about the wind strategy.

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