Michael Moynihan (Cork North West, Fianna Fail)
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1. To ask the Minister for Communications, Energy and Natural Resources if he is concerned by recent reports from the Society of St. Vincent de Paul charity that it is paying more than €10 million a year to gas and electricity companies to help families pay their energy bills; the reason cumulative gas and electricity price rises since 2011 have added €500 to the average household energy bill; and if he will make a statement on the matter. [45356/13]

Pat Rabbitte (Dublin South West, Labour)
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The main cause is that rising international gas prices have resulted in knock-on increases in both gas and electricity prices, the latter because of the role gas plays in the Irish power generation portfolio. Given our reliance on imported gas, increases in gas and electricity prices are, in turn, caused by increases in international gas prices as well as increased transport charges and adverse movements in exchange rates.

In line with the European average and increasing wholesale gas prices, for example, in the United Kingdom, retail energy prices have increased since 2009. Three of the UK's big six energy companies have recently announced price increases of between 8% and 10.4% for their electricity and gas offerings. Therefore, I welcome the decision of Electric Ireland and Bord Gáis Energy not to increase electricity tariffs this year. The Deputy will be aware that Airtricity has announced its intention to increase prices by 3.8% from 1 November.

The matters raised by Deputy Moynihan are naturally a concern to me, the Government, the regulator and voluntary organisations. The work of the Society of St. Vincent de Paul and other similar organisations in supporting those who are in debt or who have difficulty paying bills is to be applauded. However, the society does not explain how it arrives at the figure quoted by the Deputy nor does my advice support that figure.

The affordable energy strategy is the centrepiece of the Government's strategy to protect these households at risk from energy poverty. The strategy was published in November 2011 and identifies 48 actions for implementation. Upgrading the thermal efficiency of people's homes is fundamental to addressing energy poverty, with the main delivery mechanism being the better energy warmer homes programme. Under this programme households can obtain a range of grants to provide draught-proofing, attic insulation, lagging jackets for hot water tanks, low-energy light bulbs and cavity wall insulation, which are free of charge to low-income families.

Additional information not given on the floor of the House

The better energy warmer homes programme was allocated Exchequer funding of €21 million this year and this is expected to result in the upgrading of over 10,000 homes. It is anticipated that the better energy allocation in budget 2014 will allow energy efficiency measures to be installed in a further 15,000 energy-poor homes next year, bringing the total number of low-income homes supported by the programme to more than 120,000 since its launch. In total across the wider better energy programme more than 250,000 homes have received Government support for the installation of energy efficiency improvement measures.

Responsibility for the regulation of the retail electricity and gas markets is a matter for the Commission for Energy Regulation, which is an independent statutory body. Retail electricity prices are fully deregulated and similarly for gas, except for Bord Gáis Éireann tariffs for domestic consumers. In this regard, I welcome the recent announcements by two of the main suppliers, Electric Ireland and Bord Gáis Energy, to freeze their prices for the remainder of this year. I have no statutory function in the setting of electricity or gas prices.

Electricity and gas costs in Ireland are influenced by various drivers, including global gas and oil prices, the costs of capital, exchange rate fluctuations and the small size of the Irish market. The wholesale price of gas is the most significant factor in the case of Ireland for electricity and gas. This has risen steadily since 2009, driven by events such as those in the Middle East, north Africa and Japan.

Michael Moynihan (Cork North West, Fianna Fail)
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The issue has come to light in respect of the Society of St. Vincent de Paul and what it has stated about gas and electricity prices. The society is engaging with people and their bills. Information has come to me in recent days in respect of Bord Gáis Éireann having a difficult relationship or making it difficult for families to operate pay-as-you-go meters and almost trying to disown them or get out of the deals they have done with the people involved. I call on the Minister to take up the matter with Bord Gáis Éireann because the information I have is that the company is putting them at arms length and seeking to get rid of those customers who are in difficulty and who are relying on the Society of St. Vincent de Paul and others to try and make their bills.

The fundamental issue I have, which I have raised several times, is that we have seen international prices change and so on. Is the Commission for Energy Regulation doing its job properly in allowing these companies to get increases? It is high time that we had a full review of the matter. Certainly, there is evidence in respect of the companies getting a bigger increase than they sought. We need to face this down because there is a crisis.

Pat Rabbitte (Dublin South West, Labour)
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I hope Deputy Moynihan is wrong, but if he is right I would be concerned about the point he has made about pay-as-you-go meters. The protocol we have in place prevents disconnections where a pay-as-you-go meter is installed. I would be very concerned if his information is correct in that regard and I undertake to act as he says. If he can give me any more precise information on it I would be especially pleased.

The thing should be going in the other direction. We are trying to encourage consumers, especially consumers at risk of fuel poverty, to allow the meter to be installed or to enter into a payment plan to avoid disconnection. That is the real issue. Happily, it has not affected us yet this year and I hope it will not, but if we were to have a severe winter, Deputy Moynihan is correct to draw attention to it.

The questions Deputy Moynihan raised about the regulator, company profits, prices and so on are major issues in energy policy at the moment everywhere I look. One could not have opened a newspaper or watched a television programme in Britain in the past three or four weeks but it is the subject of political and economic contention. We have seen the big six hike their prices there between 8% and 10.4%. The ESB has given a commitment to freeze prices until the end of the year and into next year, and similarly Bord Gáis Energy. That is welcome but it does not mean to say that there are not people under genuine pressure.

Michael Moynihan (Cork North West, Fianna Fail)
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That is a fundamental point. Halfway through 2012 the ESB showed a vast profit but the line given out was that the company would have greater expenses in the second half of the year. However, the company showed the same profits for the second half of 2012 on the back of a major price increase.

I was in contact with the regulator on the matter and I am raising it with the Minister now. As the Minister correctly pointed out, there is a fundamental issue in respect of the profits being made by energy companies on our shores and on the backs of ordinary people. We need a fundamental examination of this policy and how we, as a society, are going to deal with it. It cannot be that these companies make vast profits from people who are under savage pressure.

Pat Rabbitte (Dublin South West, Labour)
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It is a major issue and I too have had discussions with the regulator. The regulator points out that significant investment is needed to maintain the system and security of supply. Investments in energy projects are singularly expensive. Electricity and gas costs in Ireland are influenced by various drivers, including global gas and oil prices, the cost of capital, exchange rate fluctuations and the small size of the Irish market. The wholesale price of gas is the most significant factor in the case of Ireland for electricity and gas and this has risen steadily, as Deputy Moynihan noted, since 2009, driven by events such as those in the Middle East, north Africa and Japan. The regulator will explain that these are all factors advanced by the suppliers when they put in an application. We are price takers, unfortunately.

Anyway, it is a matter of concern in terms of the heart of Deputy Moynihan's question, which relates to people in poorer circumstances who have to resort to the Society of St. Vincent de Paul to assist with their energy bills. That is a situation of serious concern to me.