Dáil debates

Thursday, 19 October 2006

3:00 pm

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)

Under EU regulations on the internal energy markets the Commission for Energy Regulation has a direct legal obligation in regard to electricity and gas consumers. These include the requirement to protect the interests of final customers and to take account of the needs of vulnerable customers. The regulator is also required to ensure that all customers are supplied with electricity and gas of a specified quality at reasonable prices.

I welcome the stronger focus on consumer protection as part of the move to liberalised markets. The interests of customers are now better safeguarded within the regulatory regime. In carrying out this function the CER regularly engages with customers and customer representative organisations.

The CER had intended to develop specific consumer panels for the gas and electricity sectors. This proposal has been superseded by the establishment of the National Consumer Agency, NCA, by my colleague the Minister for Enterprise, Trade and Employment. The agency's remit is to represent and progress consumers' interests across all economic sectors. It is also envisaged that the agency will provide a strong consumer voice in the regulated sectors, including energy.

The CER is working closely with the NCA to set up appropriate arrangements, including a memorandum of understanding on information sharing and consultation and co-operation. The CER is also establishing a dedicated consumer complaint handling team that will handle all complaints about energy suppliers. These are positive steps forward in the interests of energy consumers and I commend the CER and the NCA for their collaboration to date.

Addressing fuel poverty is a critical aspect of the Government's energy policy as outlined in the Green Paper. Support is provided through several programmes, including the SEI warmer homes scheme and low income housing programme, the household benefits package for electricity and gas allowances and the Department of Social and Family Affairs's national fuel scheme for fuel allowances as well as social welfare rates and other benefits.

The impact of high electricity and gas prices was recognised by the Government in last month's announcement by my colleague, the Minister for Social and Family Affairs, Deputy Brennan, concerning the introduction of improved household benefits, which will protect 340,000 people from energy price increases.

Additional information not given on the floor of the House.

From an overall perspective, the first step in assessing the adequacy of coverage of the existing schemes and measures is to compile a comprehensive directory, as suggested in the Green Paper, to allow an identification of gaps or weaknesses. The Green Paper also addresses wider issues around competitiveness in an environment of high and rising energy prices.

The Government is holding a two-month period of debate and consultation on the Green Paper. The two key questions for consultation are while a significant proportion of our energy prices are determined by international oil and gas prices, what actions should be taken domestically to reduce the cost of electricity and gas to consumers and what further action should be taken to alleviate fuel poverty. Following this consultation period, I will give careful consideration to the views and proposals of stakeholders on all aspects of the Green Paper, including energy prices and fuel poverty. In this context, I will also consider whether legislative or other measures are appropriate or necessary.

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