Bernard Durkan (Kildare North, Fine Gael)
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Question 120: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the fact that in other EU jurisdictions, deregulation and competition in the area of gas and electricity supply is to the advantage of the consumer in contrast to the situation here, whereby it appears that the EU law transposed into domestic law has resulted in price hikes which will have an impact on the domestic consumer and consequences for the manufacturing and services industry; and if he will make a statement on the matter. [38744/06]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 146: To ask the Minister for Communications, Marine and Natural Resources his views on the noticeable divergence of energy prices here with those in neighbouring and competing countries; if he will take action to review the relevant EU legislation with the objective of delivering the benefits of competition to the Irish consumer; and if he will make a statement on the matter. [38813/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 120 and 146 together.

I am aware of varying energy costs within the European Union. I do not have any function in relation to the pricing of electricity and gas, as this falls within the remit of the Commission for Energy Regulation, (CER), the independent regulator for electricity and gas.

I am advised that an analysis of the most recent Eurostat data on gas and electricity prices (as of 1 January 2006) indicates that the Irish price for gas supplied to domestic customers was the 12th highest price in Europe (out of 24). It was less than half the price charged in Denmark, while Sweden, Netherlands, Italy and Germany also had higher prices. Significantly, the Irish price was less than the average EU25 domestic gas price (there was no comparison available for industrial gas prices). These comparisons are based on consumer price including all taxes. Even taking into account the recent increase in gas prices, Bord Gáis has indicated that gas prices in Ireland are still the 9th cheapest in Europe and they remain below the EU 15 average.

In relation to electricity, the Eurostat statistics indicate that domestic electricity prices in Ireland are the 7th highest in Europe while Ireland had the 6th highest industrial and commercial (medium sized business) electricity prices in 2006. The CER has advised that the electricity price in Ireland is cheaper than the average price in Britain at present, although this will even out if the sanctioned price increase takes effect on January 1st 2007.

It is worth making the point that even in the most liberalised energy markets in the EU, successive price rises have been experienced throughout 2006. Ireland's small energy market, peripheral position in Europe and exposure to sustained high global oil and gas prices pose particular challenges in terms of competitive energy costs. Controllable costs must be vigorously tackled, as I have made clear on successive occasions. As part of the Green Paper consultation process my Department is consulting directly with consumer interests as well as business and enterprise on their views on energy policy directions.

The Electricity and Gas Market Directives (2003/54/EC and 2003/55/EC respectively) are designed to complete the internal market in these sectors and to speed up the liberalisation process with a view to achieving a fully operational internal market. The Directives establish common rules for the electricity and gas sectors, including rules for the organisation and functioning of these sectors, access to the markets and the criteria and procedures for the granting of licences or authorisations.

These Directives are being transposed into Irish law through a series of primary and secondary legislation. This legislation has already introduced a suite of liberalisation measures, including the full opening of the retail electricity market in Ireland and the establishment of EirGrid as the fully operational and independent electricity transmission system operator. The full opening of the gas market is provided for in the Energy (Miscellaneous Provisions) Bill 2006.