Timmy Dooley (Fianna Fail) | Oireachtas source

The Leader will be well aware that in recent days a number of our utility companies have outlined their intention to increase significantly the charges for electricity. We all know that the context for this is the very significant increase in wholesale fuel prices. Most of our electricity is guided by the price of gas and the cost of a therm of gas has gone from 60p prior to the Covid-19 pandemic to approximately £2.30 on the international trading market. That is a very significant increase, so there is a clear context or reason for electricity prices increasing.

However, I am concerned about the fact that the fixed standing charge is being increased as well. I note from Electric Ireland that it is increasing its standing charge by 36% and Bord Gáis is increasing its standing charge by 43%. The standing charge is a fixed amount that is added to the top of one's tariff rate to cover the energy supplier's fixed costs. That is the cost of paying for delivering the gas to the home. To some extent it is understandable that this might increase in line with inflation, but inflation is expected to reach 8.5% this year. I do not understand why the fixed charge in Electric Ireland has gone up by 36% and by 43% in Bord Gáis when inflation is only pegged at 8.5%. I am somewhat concerned that the electricity supply companies are using the massive increase in the wholesale price of gas, and we see it fluctuating daily, to justify their increase in the overall cost to the consumer. There is a justifiable increase in the cost to the consumer but it relates to the cost of gas, not the cost of delivery.

Perhaps the Leader might arrange for a debate in the House or she could write to the Minister and ask that the matter be referred to the Commission for Regulation of Utilities. As with lots of other companies, when everything gets out of control there are opportunities to slip in additional charges and costs, which are not to the benefit of the Irish consumer. We are aware of the pain and suffering people will go through with the increases in the cost of living as a result of the supply chain issues due to Covid-19 followed immediately by the impact of the crisis fallout from the war. We must ensure that people are protected to the greatest extent possible and that there can be no opportunity, particularly for utility companies, to gouge consumers under the fog of increased prices associated with the war.