Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

As Deputies are aware, I have no statutory function in the setting of gas prices, whether in the regulated or non-regulated parts of the market. Responsibility for the regulation of the gas market is a matter for the Commission for Energy Regulation, CER, which is an independent statutory body. Until 1 October 2011, the CER regulated the Bord Gáis Energy tariffs for its residential and smaller business customers, at which point price regulation for the latter group ended. The regulator still regulates the Bord Gáis Energy tariffs for its residential customers. Prices charged to business gas customers are wholly a commercial and operational matter for the suppliers concerned and the same is the case for non-Bord Gáis Energy suppliers to residential customers. Business and domestic customers can avail of the competitive offerings, including discounts from a number of supply companies.

Concerning the most recent increase, I understand a marginal increase in wholesale international gas prices, which are sterling denominated, did not impact on the increase as much as the deterioration in the euro-sterling exchange rate and increase in gas network tariffs. The upward pressure on gas network tariffs is primarily due to a reduction in gas demand and higher financing costs for Bord Gáis Networks, both of which are related to the financial situation here and abroad. In making its decision, the Commission for Energy Regulation takes account of the need to protect consumers from unnecessary price increases by ensuring that only reasonable legitimate costs are recovered by Bord Gáis Energy.

The Government is concerned at the impact of electricity and gas price increases, especially on vulnerable households. Included in the measures taken by the Government to combat vulnerability to high energy prices is the Better Energy: Warmer Homes Scheme. More than 17,000 low income homes will benefit this year from energy efficiency retrofits under the scheme, resulting in lower energy costs and improved comfort and well-being in the households in question. In addition, the Department of Social Protection provides supports for electricity and gas customers and operates a fuel allowance scheme. Some €464 million was disbursed under these schemes in 2011.

The Commission for Energy Regulation is also working with energy suppliers to ensure vulnerable customers are protected through, inter alia, the installation of pay-as-one-goes meters.

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