Jerry Cowley (Mayo, Independent)
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Question 1126: To ask the Minister for Enterprise, Trade and Employment his views on whether it is time for his Department and for Government to address the issue of rising energy costs for industry here in view of the fact that since 2001 there has been a cumulative price increase of over 100% in electricity and 170% in gas and acknowledging that these increases cannot be passed on in an ever increasing market place; the options available for companies based here who hope to continue manufacturing despite the high costs; and if he will make a statement on the matter. [2920/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Energy cost competitiveness is a vital aspect of national competitiveness. Global energy markets have seen sustained price increases in recent years and these have led to similar increases to energy users in free market economies. No consumer, whether industrial, commercial or personal is immune from the impact of higher oil, gas and electricity prices as a result of price changes on international markets. With 80% of our natural gas requirements and all our oil needs currently imported we are price takers in the market. The extent to which energy production and distribution costs are passed on to individual users is the function under legislation of the independent Commission for Energy Regulation.

My colleague the Minister for Communications, Marine and Natural Resources published a Green Paper on Energy in October 2006, setting out the three pillars of energy policy as being supply, sustainability and competitiveness. This, along with the forthcoming White Paper on Energy will help address energy cost developments faced by enterprise. Furthermore, considerable progress has been made in developing the all island electricity market that will provide a larger and more attractive market for new generating operators. The Single Electricity Market (SEM) will promote competition and with strengthened interconnectivity contribute to a more competitive energy regime on the island.

Enterprise Ireland (EI) operates the Competitiveness Improvement Programme (CIP) to help indigenous firms improve productivity. Energy projects may be supported under this initiative for EI clients on the CIP. Allied to this Sustainable Energy Ireland (SEI), through extensive funding by the Department of Communications, Energy and Natural Resources, has been vigorously promoting and advising on energy efficiency through a range of programmes over the last number of years. It now has a strengthened and better resourced role in advising all energy users on the potential for conservation and efficiency measures to offset higher energy costs. SEI is anxious to provide its skills and experience to firms, particularly in the manufacturing sector, to find new ways to limit their energy costs and become more competitive in energy use. In addition, the recently announced National Development Plan will provide €270 million for sustainable energy initiatives as well as €149 million for energy research to help mitigate the long term impact of higher energy costs and improve security of supply.

The Government has been active in other areas. Incentives to the renewable energy sector over the past number of years are helping promote and expand indigenous energy sources. We have more than doubled the renewable generating capacity in the past two years and are now well on target towards having 15% of the electricity we consume coming from renewable sources by 2010. By the end of 2006 a further 55 new renewable powered electricity generating plants were approved for support under the Government's new Renewable Energy Feed In Tariff Programme.