Oireachtas Joint and Select Committees

Tuesday, 9 May 2023

Joint Oireachtas Committee on Climate Action

Engagement with the Commission for Regulation of Utilities

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent)
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There was mention of the administrative error and the issue of the way household customers were being charged to effectively subsidise large energy users. There are two issues in that. There is the Government policy, which Mr. Gannon mentioned, and then there is the administrative error, which was a particularly excessive application of that policy. He mentioned the measures that have been taken in respect of the overcharging measures or the particularly inappropriate calculations that were done. However, in terms of that general principle, which was Government policy and had households subsidise large commercial users, what are the lessons from that? Again, this is not the errors in how it was unevenly applied but in terms of that general principle, has there been learning from that? Has there been a recommitment to the idea that we should not have households effectively subsidising other users or that we should look to ensure that our priority is the protection of households, citizens and all of those who live in the State rather than, for example, prioritising large energy users that have led so much of the demand increase?

On demand reduction, Mr. Gannon referred to demand flexibility. There is a lot of discussion on the demand flexibility measures by 2030 which are in the climate action plan. The EU has a 40% demand reduction target. This has come up almost every time representatives from the CRU come before the committee. When it comes to large energy users, the discussion is always about flexibility at peak times rather than a discussion about what the strategy is for demand reduction overall, that is, less energy being demanded over an entire year, for example. I am concerned that the opening statement mentions ensuring "that those businesses providing growth in our economy are appropriately incentivised to be more flexible in their demands". Are there still any measures such as sticks or hard regulatory measures to ensure we can require demand reduction or even demand flexibility from large energy users, rather than a situation where the State ends up paying, subsidising, or incentivising them to do so? I am concerned that for citizens, the price points are moving on but for large energy users, the soft approach seems to be there.