Simon Coveney (Cork South Central, Fine Gael)

I would like to focus on electricity pricing, because there seems to be some confusion in that regard. The justification for the 10% reduction in the ESB domestic electricity price by the Regulator is explained by — as the Minister of State has just said — deferring distribution and network charges the ESB would be charging users. Therefore, the Minister of State is saying the reduction in price is not linked to a reduction in the price of oil, gas and coal internationally. I find this difficult to accept. The Minister of State has also said we may have another gas price reduction in October, but will not see another reduction in ESB prices.

Last summer, oil was at $147 a barrel and gas was significantly more expensive than it is now. As a result, we had a 17% increase in the cost of energy at that time. Why are we not seeing a corresponding reduction in the cost of electricity now that the raw material or fuel for generating electricity has dropped dramatically? I understand how the energy companies work in terms of buying fuel. They buy six months in advance or more, but six months ago energy prices had also collapsed. Therefore, how can the Government, which is responsible for the regulator, justify the fact that no reduction in electricity bills is attached to the cost of oil, gas and coal?

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