Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

There is finally some good news on energy prices. Gas prices have dropped by more than two thirds since the summer. Yesterday's benchmark futures dropped to €92 per MWh, down from an astronomical €340 per MWh in August. A number of factors are feeding into this. The EU set a target for having its gas stockpiles at 80% by 1 November. This figure has been exceeded, with storage currently at 92%. Demand has also reduced, and is down by 7% across the EU so far this year. Finally, consumption across the EU is around 20% lower than for this time of the year. It may well be to do with the mild weather, but people are also fearful about turning on the heat. I understand there are a number of variables feeding into the price reduction. However, the key point remains that wholesale gas prices have significantly declined from the exorbitant peak we saw earlier this year.

Energy companies in this country were quick to increase their prices for consumers when gas prices started to rise. Electricity prices have gone up by more than 90% over the past 12 months, and energy prices are up by 80%. This means workers and their families are paying up to an additional €2,000, on average, this year on their energy bills. It is also important to note the annual price increase did not come in one fell swoop. Companies have been steadily increasing their prices every three to six months in response to what they say are increases in wholesale energy costs. This month alone, Electric Ireland, Bord Gáis Energy, SSE Airtricity and Flogas, to name a few, have all hiked their prices by 50%. While prices have soared, the number of discounts available for customers has been slashed. The discounts customers get for switching providers are now minuscule. Switching was the mechanism for ensuring competition between suppliers. Potential savings for switching have been cut from between 25% and 40% to barely 10% right across the board. The result is that the energy market here is increasingly resembling a cartel, with almost no real choice for customers. To put this in context, those who switch their accounts are now missing out on savings of up to €1,000 a year. That is coming on top of increases in bills of up to €2,000 a year. Many families facing into the winter will be choosing between feeding their families and heating their homes. Any reduction cannot come soon enough.

How quickly can we expect to see reductions in energy prices passed onto consumers? What power does the Government have to ensure energy companies are passing on reduced costs and are not gouging their customers? In the interim, has the Government acted to give the energy regulator the power to regulate the exorbitant standing charges?

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