Noel Dempsey (Meath, Fianna Fail)

The telecommunications market in Ireland is fully liberalised and open. Statutory responsibility for the regulation of the electronic communication sector rests with the independent regulator, the Commission for Communications Regulation, ComReg, under the Communications Regulation Act 2002 and the Regulations transposing the EU Regulatory Framework for Electronic Communications Networks and Services. It is not, nor will it ever be, a function of the regulator to become involved in contract debt disputes between two companies.

As the Minister with responsibility for policy in the sector, I am concerned about the disruption and inconvenience caused to so many customers and I have asked ComReg to examine how, in light of the recent situation regarding Smart Telecom, this could best be prevented from happening in the future. All options will be considered, including legislation if necessary.

In the context of energy tariff increases, both the Electricity Regulation Act 1999 and the Gas (Interim) (Regulation) Act 2002, responsibility for the regulation of electricity and gas tariffs lies with the Commission for Energy Regulation, CER, which is the independent energy regulator.

The CER undertook a rigorous examination and consultation process in advance of publication of it decisions on the tariff increases. The CER has published its decisions in detail. Together with the Electricity Supply Board and Bord Gáis Éireann, the CER has made a full presentation on these deliberations to the Joint Committee on Communications, Marine and Natural Resources.

The scenario in early October that gave rise to cheap gas on the wholesale markets was atypical. Overall demand, including heating demand, was at a low level given the mild start to the autumn and supply levels were very high because the new Langeled pipeline from Norway was being tested at maximum capacity at a time when such flows were not needed. Long-term contract prices are more relevant to the cost of consumer energy bills than short-term day trading prices, as prevailed in early October. Despite some easing of gas prices in recent months the overall view of regulators, analysts and suppliers is that costs will remain high at least until next year.

The regulator has indicated he is open to reviewing tariffs should there be a significant and sustained downward trend in costs on the wholesale markets.

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