Joe McHugh (Donegal North East, Fine Gael)
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Question 116: To ask the Minister for Communications, Energy and Natural Resources his views on amending legislation in order to establish a public hearings system in advance in an application by energy companies for a price increase to allow the vulnerable in society and their representatives to have their opinions heard; and if he will make a statement on the matter. [37218/08]

Eamon Ryan (Dublin South, Green Party)
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The regulation of ESB electricity tariffs and BGÉ gas tariffs is the statutory responsibility of the Commission for Energy Regulation (CER). I have no function in setting or regulating energy prices. In a departure from the normal annual cycle, the CER took early action this year to cushion energy consumers from the unprecedented volatility in international market prices for gas, coal and oil. CER announced a phased approach to price increases with the first phase interim increase to take effect from 1 August in respect of electricity and 1 September 2008 in respect of gas. The CER also announced at the time that it would be undertaking a second phase price review in the autumn.

Phase two of the Commission's price review of ESB and Bord Gáis Energy Supply tariffs is under way and applications made to the CER by ESB and BGÉ will be published next week on the CER website. While oil prices have fallen considerably in recent months, global gas prices have not fallen to the same degree and are still higher than this time last year. Over 50% of electricity is currently generated from natural gas. Legislative change is not needed to enable the CER to hold public fora on energy prices. It has been standard practice for the CER, prior to making final decisions on tariffs, to seek public comment on proposed tariff decisions. On this occasion the CER has decided as part of the public consultation process to hold a public forum on 10 November with ESB and BGÉ, which all stakeholders and interest groups will be encouraged to attend.

I very much welcome this initiative by CER as providing an important opportunity for consumers and interested groups to debate in public with CER, ESB and BGÉ on the complex issues around energy prices. CER have made it clear that all parties with a stake in energy matters are welcome to the public forum. These include the National Consumer Agency and those representing vulnerable and elderly consumers. Stakeholders will also be invited to make written submissions directly to the CER to inform the Commission in making its second phase decision on prices.

The CER also has a statutory role in protecting vulnerable customers in the energy markets. Under the European Communities (Internal Market in Electricity) Regulations 2005 the CER is tasked with ensuring that there are adequate safeguards to protect vulnerable customers. The CER has set out guidelines for the protection of household electricity and natural gas customers, particularly the elderly, customers relying on life support equipment and those with disabilities. The CER also regularly meets with customer representative groups to discuss their concerns.

The Government is fully committed to protecting the most vulnerable members of society from the impact of rising energy costs through a combination of social welfare supports and investment in structural improvements to enhance the energy efficiency of the housing stock. I am working with the Minister for Social and Family Affairs to deliver a fully cohesive strategic approach in this regard across Government and Agencies.