Seán Power (Kildare South, Fianna Fail)

My ministerial colleague, Deputy Eamon Ryan, has highlighted some of the measures the Government is taking to improve the competitiveness of the energy sector that will ultimately deliver lower electricity prices to consumers. I am sure that is something we will all work towards and can all agree with. It is important to examine some of the measures we are participating in at European level, which will also contribute to the competitiveness of our electricity supply. Deputy Deenihan and other Members referred to the importance of energy costs. We are very much aware of that and for that reason we have set some high targets for the renewable energy area. We have surprised many people with the progress and success we have achieved so far in that regard.

The integration of energy policy at European level will involve a drive towards further interconnection and ultimately the development of regional energy markets. These are policies that will deliver more competition and greater security of supply to our electricity system. They can only help to lower energy costs for hard pressed electricity consumers and we are actively promoting their development in Europe as committed members of the European Union. Many business sectors find themselves challenged by the change in our financial circumstances. These challenges were not envisaged 12 or 24 months ago. Those working in the renewable energy sector, however, can feel sure of the future because we will see much greater activity and investment there.

We should acknowledge the measures the Government has put in place to empower ordinary consumers better to manage and ultimately reduce their electricity usage, and to protect the most vulnerable in society from the effects of high and volatile energy prices.

Even before the recent dispute between Russia and the Ukraine, energy policy and climate change had risen to the top of the EU agenda. This reflects the ongoing concern for energy security and competitiveness, and the central linkage between energy policy and the climate change challenge.

The energy policy for Europe, adopted by Heads of State and Government in 2007, together with the Internal Market and energy climate change packages, form the framework for an intensive work programme on energy policy over the next five years. Part of that policy involves EU commitments to achieving 20% of energy from renewable sources and a unilateral commitment to a 20% reduction in greenhouse gas emissions by 2020. The EU has also committed to a 30% reduction in emissions in the same timeframe, in the context of an international agreement to follow the Kyoto Protocol.

The recently announced draft European economic recovery programme reinforces this commitment. The package includes the welcome proposal of €100 million in financial aid to develop the east-west interconnector. The Government will work to ensure that this aid is retained in negotiations on the package. We will also work to ensure that the aid, if forthcoming together with financing from the European Investment Bank, is used in a manner that benefits Irish energy consumers. We will also continue to seek assistance from Europe on the further development of our infrastructure where any such aid can be obtained.

EirGrid, the national transmission system operator, is currently reviewing the potential for further interconnection with European energy markets on completion of the east-west interconnector. The single electricity market committee, which governs the operation of the all-island market, has also recently commenced a project to study how best to achieve the harmonisation of markets.

Consumers have experienced increases in electricity and gas bills under last year's unavoidable price increases. Much has been said about the regulator in this debate but last year the regulator was faced with a difficult decision, given the large oil and gas price increases globally, as well as the increases that were sought nationally. A decision was made towards the end of last summer to provide increases in both the price of electricity and gas. However, the regulator decided that, rather than sanctioning the large increases sought, the matter would be reviewed towards the end of the year. That proved to be a wise decision which resulted in a reduction in the price of electricity and gas towards the end of last year. I acknowledge the welcome decision of the regulator at that time.

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