Bernard Durkan (Kildare North, Fine Gael)
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Question 513: To ask the Minister for Communications, Energy and Natural Resources the plans he has to reduce energy costs to consumers, domestic, industrial and commercial; if he has set any targets for such; and if he will make a statement on the matter. [4959/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 514: To ask the Minister for Communications, Energy and Natural Resources his plans, if any, to bring energy prices for consumers here into line with those prevailing in other EU countries, with particular reference to those without access to nuclear power; and if he will make a statement on the matter. [4960/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 513 and 514 together.

The regulation of ESB customer supply electricity tariffs and BGÉ gas tariffs is the statutory responsibility of the Commission for Energy Regulation (CER) under the Electricity Regulation Act 1999 and the Gas (Interim) Regulation Act 2002. I welcome the fact that the CER announced on 1 December 2008 that there would be no further increase in the price of gas from January 2009 and that there would be a small average decrease from that month of just less than 1% in the price of electricity supplied by ESB Customer Supply. This decision is reflective of recent easing in international fossil fuel prices, which follows a period of exponential increases in global oil, gas and coal prices. I also welcome the substantial rebate being provided by ESB to all electricity customers, irrespective of supplier, which has helped to stabilise electricity prices for 2009.

The CER is required to examine the costs underlying the regulated tariffs to ensure they are cost reflective. However, I believe that we can lower energy costs to consumers in a non-distortionary fashion, through an expedited review of tariffs. To achieve this, I have asked the energy regulator to undertake an immediate review of options to bring forward a reduction in electricity prices. As I stated in this House last week if current trends in energy prices, particularly gas continue, I would expect a double-digit cut in electricity and gas prices to become a reality later this year.

Encouraging a competitive energy supply is a key policy objective for the Government. Rising energy costs are a major concern for all sectors of the economy and for consumers. It is a major concern for the European Union and globally. In this context, I welcome the National Competitiveness Council's investigation into electricity prices. This report, along with other recently published research, such as Sustainable Energy Ireland's report on Understanding Electricity and Gas Prices in Ireland, provide a valuable insight into the drivers of higher energy costs in our market. In particular, they underline the imperative to reduce Ireland's dependence on imported fossil fuels and our exposure to volatile international market prices for these commodities.

The Government's Energy Policy Framework and the Programme for Government set out the actions being taken to deliver security, sustainability and competitiveness of energy supply. We must use energy far more efficiently, deliver on our ambitious renewable targets and progress vital strategic energy infrastructure such as the East West Electricity Interconnector. Initiatives in all these areas are being progressed.