Dr. Mark Cassidy:

On the Deputy's first question, I agree. I do not think that what we will see in the transition to renewables are lower prices or that this is their main intention. The main intention of the transition to renewables away from fossil fuels relates to climate change objectives and, potentially, security of energy supply so that we become less reliant on international sources. As far as I know, there is no evidence to suggest that this is being done to reduce the cost of energy. Indeed renewables, at the moment at least, would be more expensive and there are potential inflationary effects in the shift to renewables. I do not disagree with what Deputy Boyd Barrett is saying. I am not very aware of the alternative argument, that it is being done for price reasons.

On the second issue, what Deputy Boyd Barrett is saying is also correct. From a national perspective, we could look at it as the difference between energy exporting and energy importing countries. This is a shock that benefits energy exporting countries at the expense of energy importing countries like Ireland. That said, there is a shock to supply so it is not that energy exporting countries are able produce and sell the same amount of energy as they did previously and charge twice the price. Certainly, the current situation benefits energy exporters at the expense of energy importers. It is a terms of trade shock, I suppose and that is the nature of the shock.

I would not say that it is the same within the energy sector. I would not say it is the same for those selling energy, for example, energy retailers because they are paying the higher prices in order to purchase the energy and passing those on. I do not have information on the extent to which they are passing those increases on or whether the increases are more or less than they are paying. Certainly, the benefits of higher energy prices generally are felt by those producing the energy, the ultimate producers of it, at the expense of the energy importers or consumers.

I am not disagreeing with anything the Deputy is saying in that regard.