Written answers

Thursday, 5 May 2005

Department of Communications, Energy and Natural Resources

Electricity Generation

5:00 pm

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 16: To ask the Minister for Communications, Marine and Natural Resources when he expects domestic customers to receive benefits from electricity market opening in view of the steady rise in domestic electricity prices and consequent higher bills; and if he will make a statement on the matter. [14387/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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As regards domestic electricity prices, the Deputy will be aware I have no function in relation to the pricing of electricity as this falls within the remit of the Commission for Energy Regulation, CER, the independent regulator for electricity and gas. Turning to the kernel of the question, the Deputy will also be aware that liberalisation of the electricity market has proceeded on a phased basis since February 2000 under the regulatory oversight of the CER.

In accordance with the Electricity Regulation Act 1999 (Eligible Customer) (Consumption of Electricity) Order 2003 on 19 February last, the market opened fully to competition. From that date, all customers have been eligible to source their electricity from any licensed supplier and the entire market became contestable. Scope now exists for all customers, household and non-household alike, to seek out keener prices in the competitive market. This is over two years in advance of the July 2007 deadline set down in Electricity Directive 2003/54/EC.

The opening of the market has benefited customers by broadening customer choice. The latest information available to me from the CER indicates that to date 10,202 primarily non-domestic customers have switched supplier. Since full market opening the CER has ensured that the support systems and processes are in place to enable new entrant electricity suppliers to serve any customer in Ireland.

To date suppliers have focused on larger customers because this was the first segment of the market to open to competition, a pattern that is very common in other newly liberalising markets. Over time, as suppliers target the domestic market, I expect to see those benefits extended to the domestic customer.

As part of its oversight role in the opening of the market, the Commission for Energy Regulation plans to launch shortly a new customer-focused website to help inform customers of their rights and entitlements and answer questions they may have about their electricity supplier.

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