Oireachtas Joint and Select Committees

Tuesday, 5 October 2021

Joint Oireachtas Committee on Climate Action

Energy Charter Treaty, Energy Security, Liquefied Natural Gas and Data Centres: Discussion (resumed)

Mr. Jim Gannon:

Mr. Foley mentioned that when wind is on the system, it is quite inexpensive. That reduces our wholesale electricity price. It is very important to recognise that across Europe, many, if not all, of our fellow regulators are experiencing the same price increase. This is due to many different factors. This year, wind has been historically low. I think 1961 was the last time we had so little wind. That is influencing many of our colleagues, not just in northern and western Europe but also in eastern and central Europe. Separately, it has been a very poor hydrological year in terms of the hydroelectric plants that many of other countries use. That is before we get to the issue of natural gas and other commodities, such as coal and oil, becoming slightly more expensive. A number of factors have come together at a point in time. Normally, these would not come together and we are, therefore, hopeful that the particular pinch points we see now, coming into the winter, will be mitigated. It is important for us to mention some of the protections that we have in place for consumers and that members are aware of them. We do our best to ensure people know about them. My colleague, Ms MacEvilly, will go through them.