Eamon Ryan (Dublin South, Green Party)

That behavioural approach, while not as high profile or well recognised as some of the other physical measures, is acknowledged by those with an interest in this area as being crucial.

There are a number of other schemes in operation but I do not intend to go into all of the details on them now. I appreciate that Deputy Coveney recognises certain measures, including the introduction of smart meters. Such meters will go out to 20,000 householders this autumn and eventually to all householders to help them to cut down their electricity bills. I intend to go further with the introduction of energy efficiency obligations on electricity and gas supply companies, similar to those that exist in other jurisdictions. An obligation will be placed on companies to invest in energy efficiency measures that will assist their customers. That has proved hugely successful in other countries and has directed investment from the companies to their customers to help them to save money. I am currently working on this issue with the energy companies.

All of the aforementioned measures are part of the response we need. However, it is not just the Government which has a role in this regard. The CER has a regulatory role to play in terms of how customers, and particularly those on lower incomes, are treated. It also has a crucial role in terms of price regulation. It has a statutory responsibility for setting ESB electricity and BGE gas prices. The CER informed me that its decision to raise prices this year was a direct result of the sharp and sustained increase in international fuel prices. At the time of its decision, the price of gas had increased by over 130%, oil by 85%, while the price of coal had doubled.

The CER has a statutory responsibility to consider the impact of its tariff decisions on consumers. Given the difficult economic situation and the severe impact of fuel price increases on Irish consumers, the CER decided it was responsible and appropriate, in the circumstances, to adopt a two-phase approach to price increases. Hence, despite the unprecedented rise in global fossil fuel prices in 2008, ESB tariffs for domestic and small business consumers increased by an average of just 17.5% from 1 August. BGE tariffs for domestic consumers are increasing by an average of 20% from 1 October.

Under the two-phase approach, the ESB and BGE will make further submissions to the commission in late October. These submissions will be published for consultation on 3 November. This will be followed shortly thereafter by a public forum where interested parties will have an opportunity to engage directly with the ESB and BGE on their price submissions. The CER will publish its final decision at the start of December and the new tariff rates will apply from 1 January 2009.

In addition, the CER has proactively engaged with the ESB to identify mechanisms by which it will be possible to mitigate the price impact for customers. In this regard, the House will be aware that the ESB will provide a rebate of €300 million, applicable to all electricity customers, irrespective of their supplier, which will reduce the impact of any price increases by approximately 8% and largely address the windfall gains earned by the ESB in 2009.

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