Tommy Broughan (Dublin North East, Labour)

I have reviewed the Electricity Regulation Act 1999 which established the Commission for Energy Regulation, CER. The CER's functions were to publish, pursuant to a policy direction or directions of the Minister proposals for a system of contracts and other arrangements, to engage in a public consultation process, to advise the Minister on the impact of electricity generation in relation to sustainability, and international agreements and so on. There are many vague, general functions but nothing that covers the impact of CER's decision on vulnerable consumers. There is a reference to the commission having regard to the needs of various elements and this relates particularly to producers, generators, licence holders and so on. In the 1999 Act, under the commission's functions, it is stated it must take account of the protection of the environment, the efficient use of electricity, the needs of rural customers, the disadvantaged and the elderly. However, the CER has never advanced a mechanism whereby it would do this.

I am studying developments that would, from a market point of view, address the almost certain fuel and energy poverty we will see in the forthcoming winter. This poverty will be due to the Government's decision to allow CER, under current legislation, to deliver a double whammy consisting of a 34% increase in gas prices and a 20% increase in electricity prices in addition to the increases of 100% that have been seen in the lifetime of this Government. Greater intervention is required by the Government in relation to CER's powers. The Electricity Regulation Act 1999 was the major Act relating to market regulation since the Electricity Supply Act 1927, which established the Electricity Supply Board. The Bill before us gives us an opportunity to put the needs of consumers, families and small businesses at the centre of CER's thinking, rather than existing as an afterthought as is the case in the Electricity Regulation Act 1999.

I urge the Minister of State to accept amendment No. 18 and I also support amendment No. 17. We need a mechanism to make CER more responsive to vulnerable consumers.

See this speech in context