Denis Naughten (Roscommon-South Leitrim, Fine Gael)

I welcome the opportunity to speak on this debate. Irish households and businesses are being burdened with the highest energy prices in Europe. This is having a dramatic impact on the financial management and day-to-day lives of households and families throughout the country and on businesses and small businesses, particularly small businesses struggling to cope and manage the massive energy bills they receive.

My colleague, Deputy Enright, has spoken on numerous occasions on the issue of fuel poverty. Many families fear the arrival of an ESB bill, wondering how they will manage to pay it and ensure the electricity is not turned off. Not only is this a fear for families but small businesses trying to keep their heads above water are also concerned.

It is extremely frustrating that energy prices, and electricity prices in particular, are artificially high in this country. They were set artificially high by the regulator to encourage competition. This has been the situation for the past six or seven years. It has not brought competition into the marketplace and people are struggling with it. This country has a big problem in that the ESB has been far too efficient in producing electricity. As a result of this, the ESB is investing in Europe and further afield but is debarred from investing in this country. This artificially high price needs to be addressed especially with regard to the impact it is having on the economy and competitiveness.

The red tape and bureaucracy involved in regulating the energy sector in this country, as is the case in many other sectors, is unnecessary and is putting pressure on families, individuals and small businesses. Sadly, when I raised this specific issue with the Taoiseach in the House yesterday, he stated that in a number of years time we hope to be able to cut out some of the red tape and bureaucracy. Families and small businesses do not have years. Jobs are haemorrhaging on a day to day basis. We have seen 36,500 jobs lost this year alone.

In his contribution, Deputy Coveney spoke about the windfall tax which is unnecessary at this point in time. It generates an extra €300 million per year through charges to electricity customers which could provide an automatic 10% reduction in the cost of electricity if it were handed back to the customer tomorrow morning. Why is this not being done? The energy companies received this windfall through no mechanism of their own. It was introduced by the Government to deal with the issue of carbon allowances. It should be handed back, particularly in the current economic climate.

While the regulator is quick to increase prices and slow to reduce them, another issue on which the office might begin to focus is estimated bills. The ESB states it is its objective to read the meter for every second bill. However, this does not happen. In my case, the meter was not read for 14 months. However, when the bill was issued I was charged at the higher rate rather that the rate at which much of the electricity was accumulated. Tenants in rented accommodation face a problem where they transfer between meter readings and end up being charged for electricity used by a previous tenant. This is a major problem and the regulator must set standards on estimated bills and ensure that public information is made available to people so they are not being overcharged for electricity they never used.

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