Paul Kehoe (Wexford, Fine Gael)
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Question 79: To ask the Minister for Communications, Marine and Natural Resources if he has made suggestions, issued instructions or expressed opinions in regard to the impact on the consumer of higher energy prices with particular reference to current and future economic needs, incorporating higher demands; and if he will make a statement on the matter. [26566/06]

Noel Dempsey (Meath, Fianna Fail)
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I have no function in relation to the regulation of electricity and gas charges. This is a matter which falls within the statutory responsibility of the Commission for Energy Regulation (CER) under the Electricity Regulation Act, 1999, as amended by section 3 of the European Communities (Internal Market in Electricity) Regulations 2005 (S.I. No. 60 of 2005). Nor do I currently have powers to issue policy directions to the CER in this respect.

However, as the Deputy may be aware, during the course of the second stage debate on the Energy (Miscellaneous Provisions) Bill on the 18th of May of this year, I expressed the view that when various applications were made to the CER for increases in electricity and gas charges, and the CER granted large increases to the companies concerned, it resulted in the airing of considerable comments and criticism.

Some of that criticism was based on the belief that the CER was only looking at one aspect of the issue, that is, providing an economic return for the companies and trying to attract other competitors into the market. While I am not saying I agree with that criticism, it was expressed widely.

People raised concerns about consumer protection, which is also a role for the Regulator and one it has tried to balance with the competition elements of its remit. It is foreseeable that in future, depending on the operation of political leadership, a Government or this House might be unanimous in the view that the balance between the weighting the CER gives to issues such as competitiveness as opposed to that given to consumer protection is wrong. However, the power provided for in section 6 of the Energy (Miscellaneous Provisions) Bill will allow the House and the Government to have a say on such matters, in an open and transparent fashion.

Section 6 of the Energy (Miscellaneous Provisions) Bill amends the Act of 1999 by inserting a new section 10A, which provides that the Minister for Communications, Marine and Natural Resources may give general policy directions to the CER to be followed by the CER in exercise of its functions. Before giving such a direction the Minister shall publish a draft of the proposed direction and give reasons for it. Interested parties would have at least 21 days within which to make representations for the Minister's consideration prior to the direction being given with or without amendment.