Oireachtas Joint and Select Committees

Tuesday, 4 October 2022

Joint Oireachtas Committee on Climate Action

Energy Prices: Discussion

Mr. Joe Duignan:

I shall respond to the question about microgeneration. In terms of the standard charge, approximately one-third of customers' tariffs are paid through the fixed element, which is called the distribution use of system charges, DUoS, and the other two-thirds are fixed. Consumption will change if someone has microgeneration or with the electrification of heat and transport. Right now, we are about one-third fixed versus two-thirds variable, which is low by international standards as there is more of a move to fixed in other jurisdiction because the network tariff element of the infrastructure that we provide is a fixed cost predominantly but it is one-third. Right now, the regulator is running a consultation in the form of a tariff structure review. The regulator ran a consultation towards the end of last year and is considering that. There will be more phases to that consultation and then that will decide the optimum solution in terms of the tariff structure so fixed versus variable, etc. The regulator sets the standing charge. The regulator as part of its consultation is engaging with lots of stakeholders and we will feed into that.

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