Michael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources his views on the need to ensure that energy prices are kept under review; and if he will make a statement on the matter. [53547/12]

Pat Rabbitte (Dublin South West, Labour)
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I have no statutory function in the setting of gas or electricity prices, whether in the regulated or non-regulated parts of these markets. Responsibility for the regulation of the retail electricity market is a matter for the Commission for Energy Regulation, CER, which is an independent statutory body. Since 4 April 2011 prices in the electricity retail market have been fully deregulated and business and domestic customers can as a result avail of competitive offerings from a number of electricity supply companies. Price setting by electricity suppliers is a commercial and operational matter for the companies operating in the retail market, including Electric Ireland which is ESB’s electricity supply business.

The Government is most concerned at the impact of higher electricity prices on residential and commercial consumers. Ireland is at the mercy of international fossil fuel prices which dictate the retail price of electricity.

There are a number of avenues open to consumers to try to mitigate rising electricity prices, and measures are also in place to assist them. Accordingly, consumers can shop around to get the best possible price and service deal from suppliers bearing in mind that other suppliers can and do offer competitive prices and products. Consumers can also take steps to improve the efficiency of their electricity usage which delivers demonstrable savings. The CER is also working with energy suppliers to ensure that vulnerable customers are protected through, inter alia, the installation of pay as you go meters.

As regards keeping electricity prices under review, the CER publishes a report every quarter on information on the retail markets in electricity and gas. It includes metrics on market share, switching rates, the rollout of pay as you go meters, debt flagging and customer disconnections. The report can be found on the CER website.

Michael Moynihan (Cork North West, Fianna Fail)
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As this is the first time I face the Minister across the Chamber in my new role as spokesperson I hope we can work in a constructive fashion. There is no doubt the issue of energy and energy prices is a matter of concern for many people. An issue that arose recently was the granting of a price increase to Electric Ireland by the Commission for Energy Regulation and later it emerged that its half-yearly profit was of the order of €230 million heading for €0.5 billion in a full year. The hard-pressed householder and business people note that the Regulator has granted a price increase to the ESB while it is making huge profits. I am aware that the statutory body, the Commission for Energy Regulation, makes periodic reports. Can the Minister comment on those reports internally and put pressure on the Commission for Energy Regulation to ensure price increases are not granted? The public perception is that price increases are granted when they are not necessary in view of the fact the companies concerned are making huge profits.

Pat Rabbitte (Dublin South West, Labour)
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I welcome the Deputy to his role as spokesman in this area and wish well and also a long stay there. I look forward to working with him and counsel him not to sign any statements prepared over quiet weekends in the Fianna Fáil head office as he did last weekend on "The Frontline" programme because the assertions in that statement about my role were not true.

The Deputy raised a good point in respect of energy prices and particularly the issue of the profits returned for the first six months by the ESB. Obviously it is regrettable that as price takers Ireland is a victim of prices on the oil and gas market. The weakness of the euro against the dollar is a particularly acute reason for the upward trend but there is some misunderstanding about the six-monthly returns by the ESB. I would be as surprised as the Deputy if a similar performance was returned for the second six months of the year. There are very particular accounting reasons that figure was returned for the first six months. It will not, unfortunately, survive until the end of the year. In addition, a significant and far-reaching restructuring programme has been concluded in the ESB which will have to be funded by the company next year.

Michael Moynihan (Cork North West, Fianna Fail)
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It it vitally important in all the sectors that are independently regulated that the consumer has confidence in the Regulator. What has transpired in recent months has led to some people losing confidence in the regulation of the energy market. It is important that clarity is brought to the issue of companies making profits on the backs of others. If there are issues in respect of returns for the second half year performance they should be in the public domain.

Pat Rabbitte (Dublin South West, Labour)
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I am looking at a note on the voluntary severance package to which I have referred and that will close by year end. The associated costs are forecast at €137 million due to approximately 500 staff exits being anticipated. It is good on the one hand to see a strong Irish multinational State company turning in a strong performance. When the 12 months returns are available they will give less cause for alarm. The Regulator does a very rigorous monitoring and policing job on prices and probably had an eye to the yearly out-turn.