John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for selecting this important topic which needs urgent attention. I also thank the Minister, Deputy White, for coming in to reply.

It is a simple matter. The prices of oil and gas have plummeted over the past few months but this has not been reflected in energy bills, that is, the electricity and gas bills that are dropping through the letter boxes of homes and business. In fact, the opposite is true because there was a recent increase in the public service obligation, PSO, charge.

From the point of view of companies, this is not acceptable. If the price of fossil fuel had gone in the opposite direction we would be told that Ireland, as a small country with no oil and little gas, has no control over the international prices and that would be a reason for hiking them. However, when the opposite is the case, it does not happen the other way.

I listened with interest to the energy regulator in a media interview. I accept what the regulator states, that she does not have a role in fixing the prices - either increasing or decreasing them - and that is taken care of through competition between the companies. However, the evidence does not support that argument. In other words, prices are not coming down.

The price of Brent crude oil today was $47 a barrel. The average price in 2014 was $110 a barrel. That represents a considerable decrease. I acknowledge that gas prices have fallen by 27%, but it is still a major decrease.

We have seen fuel prices, both for petrol and diesel, dropping at the pumps in recent weeks despite the Government tax take remaining constant and there should be capacity for a bigger decrease to be reflected in ESB and gas bills, but that has not happened. In fact, as I stated, the opposite is what is happening.

It has also been suggested that, with competition, consumers can make savings by switching from one provider to another. While there are incentives to switch, consumers must also sign a contract which ties them to a provider for a minimum of 18 months and the original decrease due to changing disappears after a few months. That should not be the only way that consumers can make savings on energy bills. Consumers have changed provider without reading the terms and conditions and found that they were tied in for 18 months. If the companies are suggesting that consumers can make savings only by switching provider, I have another suggestion. The simple suggestion is that the bills should reflect the price of fossil fuels on the international market, and that has not happened.

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