Lucinda Creighton (Dublin South East, Fine Gael)
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Question 99: To ask the Minister for Communications, Energy and Natural Resources if he will instruct the energy regulator to put a new structure in place around the consultation process for making a decision on energy prices, that will give the consumer and those affected by fuel poverty a formal say; and if he will make a statement on the matter. [43684/08]

Eamon Ryan (Dublin South, Green Party)
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The regulation of ESB electricity tariffs and Bord Gáis Éireann (BGÉ) gas tariffs is the statutory responsibility of the Commission for Energy Regulation (CER) under the Electricity Regulation Act and the Gas (Interim) Regulation Act 2002. I have no function in setting or regulating energy prices.

I note yesterday's announcement by the CER of its Phase 2 decision on ESB and BGÉ tariffs, which is reflective of recent easing in international prices, particularly for gas and coal. I also note the substantial rebate being provided by ESB to all electricity customers, which helped mitigate the need for a tariff increase.

The two phase approach to tariff regulation adopted by the CER this year was prudent in terms of minimising the impact of volatile market prices for energy consumers in Ireland. Flexibility is clearly important in addressing our energy costs, which are a key challenge for competitiveness. I therefore welcome the CER's intention to review tariffs and methodologies next year in light of global trends in international fuel prices and all other relevant factors.

In September 2007, the CER published a consultation paper on a review of its consultation process. Following a review of the comments received, the Commission then published in February of this year, a number of proposals designed to address other areas identified as in need of improvement and also enhance the areas. In June 2008, following further consultation, the Commission published its final decision on these proposals which resulted in the implementation of 15 out of its original 19 proposals. One of the decisions made involved the holding of public forums as part of certain consultation processes.

In the context of Phase Two of the Commission's price review of ESB and Bord Gáis Energy Supply tariffs, the CER as part of the public consultation process held a public forum on 10 November with ESB and BGÉ, which all stakeholders and interest groups were encouraged to attend. This was in addition to the 'regular' full open consultation. The CER also launched its new customer service — energycustomers.ie — in late October 2008, which is aimed at the provision of additional information to customers on the energy sector.

The Open Forum initiative by the CER provided an important opportunity for consumers and interested groups to debate in public with CER, ESB and BGÉ on the complex issues around energy prices. Attended by representatives of a broad range of business and consumer groups, as well as ordinary customers, the forum provided an opportunity for consumers to voice their concerns about energy costs. Stakeholders were also invited to make written submissions directly to the CER to inform the Commission in making its second phase decision on prices. The forum was well attended and I believe the CER has received favourable comments in relation to the event itself and its objectives. The CER is also committed to continually looking at ways in which its consultative process can be improved.

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.

In addition to this, the Commission will in 2009, look at ways of introducing greater flexibility into electricity and gas tariff structures including payment options. The CER is also leading the ongoing smart metering project, one of the aims of which is to provide greater empowerment for customers over their energy usage and bills.

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 ensure a fully cohesive strategic approach in this regard across Government and Agencies.