Dáil debates

Wednesday, 7 March 2012

3:00 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)

The Irish oil industry is fully privatised, liberalised and deregulated, and there is free entry to the market. There is no price control on petroleum products and it is government policy to encourage price competition and consumer choice. Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, which is an independent statutory body.

Previous surveys have shown that prices charged by Irish retailers for oil products relate to the refinery price rather than to the price of crude oil. Prices at the pump reflect the volatile market price, as well as transportation costs, trends in euro-dollar exchange rates and other operating costs, together with the impact of taxation on oil products.

Figures produced by the EU market observatory for energy in its oil bulletin, in respect of prices in force on 20 February 2012, indicate that the price in Ireland of petrol and diesel - I think this is the point being raised by the Deputy - was lower than the EU average, and that the price of home heating gas oil was higher than the EU average. Such prices were inclusive of duties and taxes.

Ireland's electricity and gas markets, both wholesale and retail, are characterised by increasing competition, regulated by the CER. Competition puts downward pressure on prices, while we must acknowledge that global fossil fuel prices are a factor outside Ireland's control. Prices in the retail electricity market are now fully deregulated. Since 1 October 2012, the residential gas consumer segment is the only segment of the electricity and gas markets where prices are regulated. Prices in the electricity market and the unregulated part of the gas market are wholly commercial and are set by the suppliers.

While Ireland is a price taker for imported fossil fuels, we will continue to focus on any additional actions to mitigate costs, where possible, for business and domestic customers. This is essential for competitiveness, employment and economic recovery. I am committed to working with enterprise and with the energy sector to ensure the costs of energy for businesses are as competitive as possible.

Latest EUROSTAT data, published by the Sustainable Energy Authority of Ireland for the first six months of 2011, show that Irish electricity and gas prices are competitive by reference to the EU average for medium to large business customers.

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