Michael Moynihan (Cork North West, Fianna Fail)
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52. To ask the Minister for Communications, Energy and Natural Resources the measures he will take to enhance competition in the energy market; the actions he will take to protect Ireland from external energy price shocks; if he will examine the remit of the Commission for Energy Regulation; and if he will make a statement on the matter. [27899/13]

Pat Rabbitte (Dublin South West, Labour)
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The Government remains firmly committed to increasing competition as the best means of exerting downward pressure on prices in the electricity and gas markets in Ireland. Currently, there is competition in both the electricity and gas markets, with many players competing in both the wholesale and retail segments of the electricity market and in the retail segment of the gas market. Business and domestic consumers can choose from a range of suppliers in both electricity and gas, thereby availing of the benefits of competition.

Electricity and gas costs in Ireland are influenced by various drivers, with global gas and oil prices being the most significant factors. Among other factors over which we have little or no control are exchange rate movements, the cost of capital, EU legislative obligations and unfavourable international events, as well as our small size, geographical location, low population density and population dispersal. Given the reality of how much these factors affect prices, it is clear there is little scope for protecting Ireland from external energy price shocks.

The main opportunities to mitigate the impact of external price increases are in focusing on greater energy efficiency and diversity of fuels. Energy efficiency represents a significant opportunity for both businesses and households to reduce their energy costs and mitigates the impact of external price rises. Achieving the Government's target of generating 40% of our electricity from renewable sources by 2020 would provide greater diversity of fuel supply and would also help to offset the impact of volatile fossil fuel prices.

The remit of the Commission for Energy Regulation, CER, is set out in the Electricity Regulation Act 1999, as amended. More generally, with the deregulation of electricity and most gas retail prices, the primary focus of the regulator, as far as prices are concerned, is its joint oversight with the Northern Ireland regulator of the all-island single electricity market, its scrutiny of electricity and gas network costs, which feed into retail prices, and its general consumer advice and protection role. The statutory functions of the regulator require it to consider and decide on very complex issues.

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The CER's ability to strike an appropriate balance between competing demands is noteworthy. The CER is required, first, to promote efficient, orderly, fair and competitive markets, second, to facilitate investment, and third, to protect consumers' interests. Striking such a balance requires considerable knowledge, skills and expertise. While the roles of regulators are continually monitored, I have no specific plans to review the remit of the CER in the near future.

Michael Moynihan (Cork North West, Fianna Fail)
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I thank the Minister for his reply. We have seen reports in recent weeks about the increase in the number of households whose gas or electricity supplies were cut off during 2012, and that figure is still increasing. Is the Minister satisfied with the role the regulator is performing and the duties it is carrying out?

Commodity oil and gas prices reduced by about 11% in the wholesale market in May, but that reduction was not passed on immediately. It is the old argument. If the price of oil goes up, the price increase is immediately passed on at the pumps or in the cost of home heating oil, but if it goes down, they tell us they have oil in storage and that it will take them a number of months to get to the cheaper oil. Is the Minister satisfied that the regulator is doing everything in its power to ensure the price of energy for homes or businesses is at the lowest possible level?

Pat Rabbitte (Dublin South West, Labour)
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Unfortunately, since about mid-2009, the price of fossil fuels has continued to rise in the international marketplace. We are 100% dependent on oil imports and 95% dependent on gas imports. In that sense, we are price takers. To that extent, we import fossil fuels and are, therefore, vulnerable. The Deputy will acknowledge that for the first time in a very long time the most recent Bord Gáis Energy index shows that there has been a decrease this month, which is certainly welcome. However, I am advised that gas prices reached their highest ever level in March. That is the context.

I share the Deputy's concern about disconnections and use every opportunity to bring to the attention of consumers that under the protocol in place with the supply companies, where a consumer enters into a prepayment plan or installs a pay-as-you-go meter, the household cannot not be cut off. There has been a considerable rise in the number of installed meters, but it could be better. I appeal to people to take steps to install meters to avoid being disconnected.

Michael Moynihan (Cork North West, Fianna Fail)
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Are the Minister and the Department happy with the role of the Commission for Energy Regulation? Has the Department explored the possibility of extending the commission's remit in the light of the number of disconnections and ensuring the best possible price for householders and businesspeople? Is the Minister satisfied with the commission's remit and has he looked at ways of extending it?

Pat Rabbitte (Dublin South West, Labour)
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The Commission for Energy Regulation does a good and conscientious job. I met it two weeks ago to discuss the issue raised by the Deputy. The commission and I are examining whether there are measures not known heretofore that can be brought to bear. As the Deputy is aware, the regulator is required to promote efficient, orderly, fair and competitive markets; to facilitate investment; and to protect consumers' interests. It is that third requirement on which the Deputy focuses. Striking a balance in that regard requires considerable knowledge, skill and expertise. That requirement of the regulator is continually monitored. I have no short-term plans in respect of reviewing the entire role of the Commission for Energy Regulation.