Catherine Murphy (Kildare North, Social Democrats)
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81. To ask the Minister for Enterprise, Trade and Employment the steps his Department has taken to address the volatility and increases in energy costs for the commercial sector, small businesses and sole traders. [61025/21]

Catherine Murphy (Kildare North, Social Democrats)
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My question relates to the volatility and increases in energy costs for the commercial sector. We know that in the domestic sector, people can switch suppliers. My understanding is that some companies are not issuing new contracts, so there is very little competition. I wrote to the Tánaiste by email on 23 November and to the Commission for Regulation of Utilities, citing an example of that in my own constituency. I am asking what the Tánaiste's Department can do on this issue.

Leo Varadkar (Dublin West, Fine Gael)
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Wholesale and retail energy costs, electricity and natural gas, have risen significantly over the past year, primarily driven by the market price for natural gas internationally. The global natural gas price appears to be rising because of a combination of international geopolitical factors, lower than usual reserves and regional supply chain and weather issues. Increased oil prices are also affecting the cost of petrol and diesel at the pump.

I am extremely conscious of the pressure that volatility in costs can put on a business, particularly small enterprises, those with tight margins and those particularly dependent on certain fuels. I have asked my officials to engage with the Department of the Environment, Climate and Communications on the issues arising for business as part of wider Government consideration of the effects of energy costs increasing. Energy bills can be an inflexible component of the cost base of a business in the short term and in certain energy intensive manufacturing sectors. These are a key element of cost-competitiveness.

Energy costs are volatile historically. Ireland is particularly dependent on natural gas for electricity generation, heating and industry and, therefore, recent international price spikes are a cause for concern for the Government and a threat to our competitiveness. However, these increases are unlikely to last indefinitely as the market responds and production increases. Recent global price volatility for fuels is yet another reminder that our society and our businesses should increasingly be looking to reduce our exposure to fossil fuels.

Government efforts to achieve price competitiveness should focus on delivering diversified energy systems and support for energy efficiency and renewables, with regulation that protects consumers and delivers efficient, competitive energy retail and wholesale markets. A range of incentives and advice is available to business to help them use energy efficiently, diversify their fuel use and switch to renewable energy sources. Small businesses can currently receive an energy audit voucher from SEAI to get professional advice on how to increase efficiency and reduce their costs.

Catherine Murphy (Kildare North, Social Democrats)
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I sent the Tánaiste the details from the constituent who was in contact with me who employees 120 people. I completely accept there is an international issue. I hope it will be short term. There is a lack of competition whereby there is no possibility of being able to negotiate with a provider. Domestic customers can switch but not enough of them do. This competitive side is problematic. This particular enterprise was paying 6 cent a unit and is now paying 25 cent a unit. It may well compromise future contracts for this particular company.

Leo Varadkar (Dublin West, Fine Gael)
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I thank the Deputy. I do not recall seeing that particular email but I will ask my private secretary to pull it out for me and I will take a look at it today or tomorrow. That is a huge increase from 6 cent to 25 cent. For any business facing that sort of increase in energy costs it will be very serious and very severe. I will take a look at it.

Obviously responsibility for energy and energy prices does not fall under my remit or that of the Department. It is the responsibility of the Minister, Deputy Ryan. I will take up the point the Deputy raised on competition and switching with him and with the regulator. As the Deputy pointed out, domestic users can switch a lot and achieve reductions in their bills this way. They tend not to. People have busy lives and do not get around to it. I encourage them to do so. For businesses it is a little bit more difficult. I re-emphasise the point I made earlier. The best thing we can do, and the Department is doing this, in the medium term is to help businesses to move away from fossil fuels and towards renewables and alternative sources. These will be much more reliable and stable in price.

Catherine Murphy (Kildare North, Social Democrats)
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I do not disagree with the Tánaiste on this. The reason I sent the email, and I will resend it for ease of access, is because it is probably one of many examples. If there is an issue with energy companies refusing to compete, even in a very volatile environment, it needs to be specifically addressed. When replying to a previous question the Tánaiste spoke about the number of people in employment and this is great. We also want to retain jobs and we want companies to be able to compete for other work. This particular company, as I am sure others do, feels it is compromised by virtue of the fact it cannot have some certainty on its energy costs.

Leo Varadkar (Dublin West, Fine Gael)
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I draw the attention of the Deputy and businesses to the new climate toolkit for business which we will launch tomorrow. It is a toolkit that will highlight the help available from the Government, financial educational training and expertise. Assistance is available from local employment offices, Enterprise Ireland, the SEAI, Irish Water, the EPA, IDA Ireland and others to help businesses to implement their actions. The target audience for the toolkit is SMEs and small businesses that want to begin their decarbonisation journey, reduce their energy use and move towards renewables and alternative sources. It should be useful to any business that does not yet have a sophisticated understanding of its carbon emissions and will help to recommend the steps it should be considering to reduce them. We are very aware that businesses have a lot on their plate and some will find the transition easier than others. We also know from detailed engagement in many sectors that most businesses are eager to be more sustainable to add value to their customers and communities by taking action on their environmental impact.