Oireachtas Joint and Select Committees
Wednesday, 25 February 2015
Joint Oireachtas Committee on Transport and Communications
Energy Prices: Discussion
9:30 am
Mr. Stephen Wheeler:
Let me add to that. There are two very important points, first, the domestic prices in the Republic of Ireland are below the EU average. That is a fact verified by a third party. When one compares the prices in the Republic with those in Great Britain, in particular to the prices in Northern Ireland, where the price reductions are so much higher, the first reason is the FX exchange rates. As I said in my opening remarks, we buy gas in sterling and we sell it in euro. The other major factor in Northern Ireland is that it is a regulated market and there is a k-factor adjustment in Northern Ireland, where companies that have over-recovered previously give back. If one looks at a unit rate comparison between Northern Ireland and the Republic of Ireland, there is very little difference between the standard rate. In spite of the higher reductions in tariff, when one compares the figure from 1 April in the Republic and Northern Ireland, the rates are very similar. That needs to be considered.
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