Bernard Durkan (Kildare North, Fine Gael)
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Question 222: To ask the Minister for Communications, Marine and Natural Resources if current liberalisation or deregulation procedures are sufficient to encourage competition in the electricity market; and if he will make a statement on the matter. [13898/06]

John Browne (Wexford, Fianna Fail)
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The conditions for competition are being created through progressive liberalisation of the electricity markets. Liberalisation of the electricity market has proceeded on a phased basis since February 2000 under the regulatory oversight of the Commission for Energy Regulation, CER.

In accordance with the Electricity Regulation Act 1999 (Eligible Customer) (Consumption of Electricity) Order 2003, on 19 February 2005, 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 well 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. Already some 42% of the market by volume is supplied by independent suppliers.

The CER is the independent statutory body responsible for regulating and overseeing the liberalisation of the electricity sector in Ireland under the Electricity Regulation Act 1999. Since full market opening the CER has ensured 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. This is a pattern common in other newly liberalising markets. Over time as suppliers target the domestic market, the CER expect to see those benefits extended to the domestic customer.

In an all-island context, work is progressing on the development of a single electricity market. In June last year the CER and the Northern Ireland Authority for Energy Regulation published their high level decision relating to the proposed design for the single electricity market. The market is planned to go live on 1 July 2007.

The potential benefits of a mature single electricity market include a larger, single market with competitive prices; open and transparent competition at all levels of the marketplace; a stable and attractive investment location; improved competitiveness; greater security of supply; robust, integrated infrastructure; a more diverse energy mix; greater energy efficiency and consumer choice; and longer-term savings.

In accordance with the Electricity Regulation Act 1999, the Minister has no function with access to the electricity transmission and distribution systems. These are matters for the system operators subject to directions given by the CER from time to time.