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

I believe that the Minister for the Environment, Climate and Communications is representing his country at a meeting of European energy ministers.

The war in Ukraine has resulted in an unprecedented rise in energy prices and is a major challenge for families and businesses throughout Ireland and across Europe. This huge increase in costs for consumers has caused real hardship for many people. This is most pronounced over the winter months, when energy use is at its highest.

That is why the Government has taken sustained action over the past year, and as recently as last week, to support households and businesses to meet the cost-of-living challenges. Direct measures to reduce energy bills include the €800 in total of energy credits introduced between April 2022 and April 2023; reductions in VAT; and the temporary business energy support scheme. In addition, the Government has introduced a range of targeted supports for the most vulnerable households, once-off measures and enhancements to tax and social welfare protections.

Electricity and gas retail markets in Ireland operate within a European regulatory regime wherein electricity and gas markets are commercial, liberalised and competitive. The market is overseen by the Commission for Regulation of Utilities, CRU. As part of its role, the CRU is monitoring the implementation of the strengthened consumer protection measures that were put in place for this winter. Earlier this week the CRU extended the moratorium on disconnections of electricity and gas for a further month until the end of March. As the Deputy will be aware, the CRU is independent and accountable to the Oireachtas.

Wholesale prices reached peak levels in August of last year, when wholesale gas prices were 706% higher than in January 2021, while electricity prices increased by 463% in the same period. Although they have since fallen back from their peak, wholesale gas prices remain more than double what they were in January 2021. Retail prices, based on an estimated annual bill, are 138% higher for gas and 98% higher for electricity this January versus January of last year. The differences in the level and speed of fluctuation in the wholesale market versus those of retail prices demonstrate the supplier hedging strategies and the extent to which those strategies shield consumers against the full extent of the utterly unprecedented international energy market volatility.

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