Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

The position of successive Governments for almost 20 years has been that competitive energy markets result in greater choice for consumers and businesses in terms of suppliers, products and prices, support competition and drive down prices.

Operating within an overall EU framework, responsibility for the regulation of electricity and gas markets is solely a matter for the Commission for Regulation of Utilities, CRU, the independent energy regulator. The CRU was assigned responsibility for the regulation of the electricity and gas retail makers under the Electricity Regulation Act 1999 and subsequent legislation. The CRU has a wide range of economic, customer protection and safety responsibilities in both energy and water.In line with long-standing policy on deregulating price setting, CRU ended its regulation of retail prices in the electricity market in 2011 and in the gas market in 2014. Given that retail prices are no longer regulated, they are set by all suppliers as entirely commercial and operational matters for them. Each such company has its own different approach to pricing decisions over time, in accordance with factors such as their overall company strategic direction and developments in their cost base.

Data from approved price comparison sites show consumers can make significant savings by switching energy suppliers. Accordingly, one of the main thrusts of Government policy on energy costs is focused on the competitive market. Government policy has supported competition to drive down prices. Based on CRU data, active customers who switched supplier or renegotiated with their current supplier every year for the last four years could have saved €704 on gas, €1,097 on electricity or €1,696 on their dual fuel costs. A recent CRU survey found that over half of electricity and gas consumers have switched supplier at least once.

As part of its statutory role, the CRU also has consumer protection functions and monitors energy retail markets to ensure competition continues to develop for the benefit of the consumer. As part of its statutory functions, including under SI 630 of 2011, the CRU carries out various market monitoring and reporting functions in association with its responsibility to ensure the market operates competitively for the benefit of the consumer. Under that statutory instrument, the CRU may take actions it considers necessary to ensure final customers benefit from competition in the supply of electricity and gas. Measures introduced by the CRU include a stipulation that electricity suppliers provide customers with an estimated annual bill, highlighting the yearly average electricity bill for a particular electricity supplier rather than just the discounted offers. Additionally, suppliers must issue a written notification annually to prompt consumers who have been on the same tariff or a non-discounted tariff for more than three years to consider switching.

The Deputy may also wish to note the CRU published two reports on competition in the market in 2017, in line with an action in the 2015 energy policy White Paper. The first report was a consumer-focused assessment of the development of competition in retail markets and its impact on prices. The CRU then followed up with an analysis of energy supply costs to understand the drivers.

The Deputy will note the CRU is accountable to a joint committee of the Oireachtas and not to the Government or the Minister for the performance of its functions, including in respect of competition. The CRU met the Oireachtas committee most recently on 5 October. The Deputy may also wish to note the CRU provides a dedicated email address for Oireachtas Members which enables them to raise day-to-day questions on regulatory matters directly with the CRU at oireachtas@cru.iefor timely direct reply. Again, this is part of the system under which Members can exercise and deliver on their oversight function. I would urge Members to use this efficient and streamlined process to assist them in fulfilling their statutory obligations in respect of CRU accountability.

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