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

What is happening is being driven by events in the Middle East, North Africa and Japan. The particular matter Deputy Cowen raises about the application from gas companies and the decision of the regulator is a function of how rapidly the position is changing. From the date Bord Gáis Energy submitted its application until the delayed date of the regulator's announcement, the position had deteriorated. A major factor in this deterioration was the decreasing value of the euro against sterling. This and geopolitical events have driven recent developments.

Looking back over recent years, the professional modelling system used by the Commission for Energy Regulation does not vary. If, owing to a set of given circumstances, the model provided for a decrease in price, a decrease was awarded. Similarly, increases are awarded where the model indicates they are warranted. I do not have any basis to criticise the modelling used by the regulator based on the advice available to me. For example, in both half years of 2011, the Commission for Energy Regulation did not give any increase and in the previous half year - to 30 September 2010 - the regulator reduced the price by 8%. In one half year in 2008, the regulator increased the tariff by 20% and in one six month period the tariff was increased by 32%. The regulator applies the model impartially.

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