Written answers

Thursday, 19 October 2006

Department of Communications, Energy and Natural Resources

Telecommunications Services

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 189: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the erosion of public confidence and damage to business arising from the disconnection of thousands of broadband and telephone subscribers without warning and the decision to award price increases for gas and electricity while gas was being made available free on some international markets; if his further attention has been drawn to the damage done to both public confidence in the regulatory system and the domestic and business sectors due to lack of consultation or justification; if he or his office have been in touch with the relevant regulators with a view to reviewing of amending the relevant legislation as transposed into Irish law; if he will examine the basis for the decisions taken with a view to ensuring against any repetition; and if he will make a statement on the matter. [33834/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The telecoms market in Ireland is fully liberalised and open.

Statutory responsibility for the regulation of the 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.

As the Minister with responsibility for policy in the sector, I am concerned about the disruption and inconvenience caused to so many customers and I have asked ComReg to examine how, in light of the recent situation regarding Smart Telecom, this could best be prevented from happening in the future.

All options will be considered, including legislation if necessary.

In the context of Energy Tariff Increases under both the Electricity Regulation Act 1999 and the Gas (Interim)(Regulation) Act 2002, responsibility for the regulation of electricity and gas tariffs lies with the Commission for Energy Regulation (CER), which is the independent energy regulator.

CER undertook a rigorous examination and consultation process in advance of publication of it decisions on the tariff increases. The CER has published its decisions in detail. Together with the Electricity Supply Board and Bord Gáis Éireann, CER has made a full presentation on these deliberations to the Joint Oireachtas Committee on Communications, Marine and Natural Resources.

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 the costs on the wholesale markets.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Question 190: To ask the Minister for Communications, Marine and Natural Resources the way he intends encouraging greater competition in the voice telephone fixed line market following the recent withdrawal of Smart Telecom from that business. [33855/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The telecoms 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 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.

In addition, the Electronic Communications (Miscellaneous Provisions) Bill, which is due to be published shortly, will provide, in the main, for enhanced enforcement powers for ComReg, the independent regulator.

Enforcement is a key element of effective regulation and it is important that there are relevant regulatory remedies in order to stimulate competition and discourage abuse of dominance, thus leading to a better range of competitively priced services in the sector.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 191: To ask the Minister for Communications, Marine and Natural Resources when residents in Churchill, County Kerry can expect to have broadband in their area. [33622/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully liberalised market, regulated by the independent Commission for Communications Regulation (ComReg).

My Department's website www.broadband.gov.ie gives full details of broadband availability in all areas, including ADSL, cable, fibre, satellite and fixed wireless. In relation to Churchill, Co. Kerry, a number of service providers have indicated to my Department that they may be in a position to provide a service subject to survey. These providers are listed on the website together with details of prices of the various service levels on offer and contact details.

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