Bernard Durkan (Kildare North, Fine Gael)
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Question 250: To ask the Minister for Communications, Marine and Natural Resources the action he proposes to take to prevent a recurrence of the situation whereby large scale disconnection of telephone and broadband subscribers took place without warning and the unwarranted price increases in respect of gas and electricity while international energy prices are falling; if he will introduce amending legislation to deal with these issues; and if he will make a statement on the matter. [33835/06]

Noel Dempsey (Meath, Fianna Fail)
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The telecommunications market in Ireland is fully liberalised and open.

Statutory responsibility for the regulation of electronic communication sector rests with the independent regulator, the Commission for Communications Regulation (ComReg), under the Communications Regulation Act 2002 and the Regulations transposing the EU Regulatory Framework for Electronic Communications Networks and Services.

ComReg's key objectives include the promotion of competition, and the promotion of the interests of users in the sector.

As Minister for Communications with responsibility for policy in the sector, I am concerned about the disruption and inconvenience caused to so many customers, and possible damage to customer confidence, and I have asked ComReg to examine how, in light of the recent situation with Smart Telecom, this could best be prevented from happening in the future. All options will be considered, including legislation if necessary.

The Commission for Energy Regulation (CER) is required under the Electricity Regulation Act 1999, the Gas (Interim) (Regulation) Act 2002 and relevant subsequent regulations to exercise its functions in a manner that protects the interests of final customers of electricity and natural gas and also to promote competition in the supply of electricity and natural gas.

The scenario in early October that gave rise to the cheap gas on the wholesale markets was atypical. Overall demand (including heating demand) was at a low level given the mild start to the autumn and supply levels were very high because the new Langeled pipeline from Norway was being tested at maximum capacity at a time when such flows were not needed. Long-term contract prices are more relevant to the cost of consumer energy bills than short-term day trading prices as prevailed in early October. Despite some easing of gas prices in recent months the overall view of regulators, analysts and suppliers is that costs will remain high at least until next year.

The regulator has indicated that he is open to reviewing tariffs should there be a significant and sustained downward trend in fuel costs on the wholesale markets.

The Green Paper "Towards a Sustainable Energy Future for Ireland" recently published by my Department has opened up the debate on the shape of policy directions for the future including pricing and competitive issues. I am looking forward to an imaginative debate, which will inform policy in this regard going forward.