Oireachtas Joint and Select Committees

Wednesday, 25 February 2015

Joint Oireachtas Committee on Transport and Communications

Energy Prices: Discussion

9:30 am

Mr. Jim Dollard:

Yes and it is related to a policy decision that the country has taken that we could not keep. There is much merit in that decision though it has an impact for the customer. There is merit in the country moving away from sole dependence on imported fuels. We are importing so much of our energy that there is a massive security of supply issue. I suppose the State took the view that it had to move towards renewables to reduce that impact. There is a cost. Wholesale prices are not as high as people would have projected then and that is what is causing that PSO to rise. If one looks at some of the EirGrid websites, day on day one can actually see the impact of wind. Over a period of time I cannot say it is having an impact. I genuinely do not have that information to hand.

The last point was that the domestic customer does not have the clout. On an individual basis they do not have the same clout as some of the marquee industrials but at another level my colleagues provide them with that clout. The battle for customers in Ireland is very significant and I think standard rates are not lost in that. There is a huge fight for domestic customers on this island. The operators here would have a different perspective on it but I would say we had 100% market share five or six years ago and they have eaten into that as more than 50% of customers have moved. While on an individual basis the domestic customer does not have clout, through the competition process they have secured greater clout.

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