Tommy Broughan (Dublin North East, Labour)
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Question 2: To ask the Minister for Communications, Marine and Natural Resources if, in the context of the 34% price hike in gas prices and the near 20% increase in electricity prices, he will introduce legislation to establish a consumer panel within CER to ensure consumer needs are adequately taken into account by the regulator in energy pricing policy, and as recommended in the recent Deloitte & Touche report in the electricity sector; the measures he is recommending to the Department of Finance and the Department of Social and Family Affairs to tackle the growing level of fuel and energy poverty in society here; and if he will make a statement on the matter. [33724/06]

Noel Dempsey (Meath, Fianna Fail)
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Under EU regulations on the internal energy markets the Commission for Energy Regulation has a direct legal obligation in regard to electricity and gas consumers. These include the requirement to protect the interests of final customers and to take account of the needs of vulnerable customers. The regulator is also required to ensure that all customers are supplied with electricity and gas of a specified quality at reasonable prices.

I welcome the stronger focus on consumer protection as part of the move to liberalised markets. The interests of customers are now better safeguarded within the regulatory regime. In carrying out this function the CER regularly engages with customers and customer representative organisations.

The CER had intended to develop specific consumer panels for the gas and electricity sectors. This proposal has been superseded by the establishment of the National Consumer Agency, NCA, by my colleague the Minister for Enterprise, Trade and Employment. The agency's remit is to represent and progress consumers' interests across all economic sectors. It is also envisaged that the agency will provide a strong consumer voice in the regulated sectors, including energy.

The CER is working closely with the NCA to set up appropriate arrangements, including a memorandum of understanding on information sharing and consultation and co-operation. The CER is also establishing a dedicated consumer complaint handling team that will handle all complaints about energy suppliers. These are positive steps forward in the interests of energy consumers and I commend the CER and the NCA for their collaboration to date.

Addressing fuel poverty is a critical aspect of the Government's energy policy as outlined in the Green Paper. Support is provided through several programmes, including the SEI warmer homes scheme and low income housing programme, the household benefits package for electricity and gas allowances and the Department of Social and Family Affairs's national fuel scheme for fuel allowances as well as social welfare rates and other benefits.

The impact of high electricity and gas prices was recognised by the Government in last month's announcement by my colleague, the Minister for Social and Family Affairs, Deputy Brennan, concerning the introduction of improved household benefits, which will protect 340,000 people from energy price increases.

Additional information not given on the floor of the House.

From an overall perspective, the first step in assessing the adequacy of coverage of the existing schemes and measures is to compile a comprehensive directory, as suggested in the Green Paper, to allow an identification of gaps or weaknesses. The Green Paper also addresses wider issues around competitiveness in an environment of high and rising energy prices.

The Government is holding a two-month period of debate and consultation on the Green Paper. The two key questions for consultation are while a significant proportion of our energy prices are determined by international oil and gas prices, what actions should be taken domestically to reduce the cost of electricity and gas to consumers and what further action should be taken to alleviate fuel poverty. Following this consultation period, I will give careful consideration to the views and proposals of stakeholders on all aspects of the Green Paper, including energy prices and fuel poverty. In this context, I will also consider whether legislative or other measures are appropriate or necessary.

Tommy Broughan (Dublin North East, Labour)
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I will speak about the impact on businesses and ordinary people. Is it not a fact that the savage gas and electricity price rises are having a devastating impact on business? Of the agencies that represent business, ISME claims that energy price rises in the past five years have been the No. 1 enemy of SMEs, the Irish Exporters Association warns that the large increase in energy costs must be addressed urgently and IBEC states that 52,408 employees in 120 companies are at immediate risk because of the failures of the Minister's policies. He is responsible because he can make legislation and change the CER.

Bernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Tommy Broughan (Dublin North East, Labour)
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I will refer to two companies, one in my constituency and one in the Minister's. The last thing people in my constituency wanted to hear yesterday was the devastating news about Cadbury, the famous chocolate company. There will be 450 job losses in Coolock. Those workers are receiving dismal reports about their futures as we speak.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy has gone outside the content of the question. I understand this matter is——

Tommy Broughan (Dublin North East, Labour)
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I am asking the Minister to comment on the impact of energy costs on Cadbury.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The matter is on the Adjournment and is not appropriate to this question.

Tommy Broughan (Dublin North East, Labour)
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To be fair, I also want to ask the Minister about Wellman International Limited in Kells, County Meath. Its chief executive, Mr. R. G. Budden, warns that the increasing electricity costs foreseen for 2007 could force his company and its 300 workers into liquidation.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Allow the Minister to reply. We are running out of time.

Tommy Broughan (Dublin North East, Labour)
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Mr. Budden states that the company's electricity costs are 70% or 80% higher than previously.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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We are running out of time.

Tommy Broughan (Dublin North East, Labour)
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Regarding ordinary people, I met an older constituent recently. He told me that when he was a young boy in the tenements in Dublin, he needed overcoats on his bed each night due to the freezing cold. He asked me whether we are again facing an era of——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy has made his point. I ask him to allow the Minister to respond.

Tommy Broughan (Dublin North East, Labour)
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——putting on overcoats because we cannot afford heating. The Minister is responsible.

Noel Dempsey (Meath, Fianna Fail)
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The Deputy can tell his constituent that we are not facing that era again. Recently, the Government, which has increased the amount of payments to old aged pensioners substantially, increased the fuel, electricity and gas allowances for elderly people. The Deputy can assure his constituent that the Government is cognisant of the effects of high prices on the elderly and those who are less well off.

It is simplistic to say the Government can ignore solutions or the fact that oil and gas prices are increasing. As outlined in the Green Paper, I am interested in reducing the ESB's prices and introducing more competition to the market to compete with the ESB and encourage it to slim down, be more effective and produce cheaper electricity. I hope the Deputy will support this measure.

Tommy Broughan (Dublin North East, Labour)
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Would the Minister be prepared to introduce a statutory——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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We have gone over the time. I have ruled on Deputy Durkan, so I cannot allow Deputy Broughan to continue.

Bernard Durkan (Kildare North, Fine Gael)
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He did.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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This ruling is the same.