Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 87: To ask the Minister for Communications, Energy and Natural Resources the steps he has taken or proposes to take nationally or through the aegis of the EU to ensure that energy prices here including electricity, gas and motor fuel prices reflect the downward trend in the price of oil on world markets; and if he will make a statement on the matter. [4569/09]

Brian O'Shea (Waterford, Labour)
Link to this: Individually | In context

Question 98: To ask the Minister for Communications, Energy and Natural Resources his views on calls to instruct the regulator to set a price ceiling for ESB and Bord Gáis prices and replace the current practice of setting a fixed actual price in order to allow the ESB and Bord Gáis to supply cheaper energy; and if he will make a statement on the matter. [4566/09]

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

Question 108: To ask the Minister for Communications, Energy and Natural Resources the way in which he plans to lower utility and energy prices in order to increase business competitiveness in north Tipperary and nationwide; his plans to set price ceilings for ESB and gas companies and increase competition in the energy sector by encouraging new companies to enter the market; and if he will make a statement on the matter. [4570/09]

Emmet Stagg (Kildare North, Labour)
Link to this: Individually | In context

Question 112: To ask the Minister for Communications, Energy and Natural Resources his views in respect of the Competitiveness Council report which found that energy costs here are the second highest out of 15 countries; and if he will make a statement on the matter. [4540/09]

Emmet Stagg (Kildare North, Labour)
Link to this: Individually | In context

Question 123: To ask the Minister for Communications, Energy and Natural Resources if energy costs will be reduced in view of the recent decrease in oil prices; if he will seek to curb rising ESB and gas prices in order to ease the burden on consumers; and if he will make a statement on the matter. [4539/09]

Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I propose to take Questions Nos. 87, 98, 108, 112 and 123 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 Commission for Energy Regulation (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 of about €400m provided by ESB to all electricity customers, irrespective of which supplier, which has helped to stabilise electricity prices for 2009.

The CER made the decision to end tariff regulation for large electricity users in September 2006. It concluded that there is a sufficient level of generation capacity in the upper end of the market to allow customers to receive offers of a competitively priced supply of electricity. As a result, the vast majority of large industrial and commercial electricity customers are currently supplied by independent suppliers and companies and are free to negotiate alternative supply offers with the alternative suppliers in the marketplace. Many of these large industrial consumers are on fuel variation tariffs and have experienced the benefits of falling gas prices in recent months.

The legislation is not prescriptive in terms of the methodology to be used by the CER in reaching its decisions on regulating residential and small business customers. The legislation does not preclude the regulator from reviewing prices more frequently nor does it preclude the regulator from adopting alternative approaches.

The CER is required to examine the costs underlying the regulated tariffs to ensure they are cost reflective and to make decisions, which do not disturb the market through a review of tariffs. I have asked CER 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 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, provides 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 will promote energy efficiency, deliver on our ambitious renewable targets and progress vital strategic energy infrastructure such as the East West Electricity Interconnector.

Much needed long overdue investment in energy infrastructure contributes to the cost of energy. The provision of this infrastructure to schedule and at least cost will however, deliver secure, sustainable, competitive and cost efficient electricity and gas supplies for the benefit of Irish business and consumers.

In relation to oil prices the Government does not control, or seek to control prices at the petrol pump. The National Consumer Agency recently undertook an investigation into diesel and petrol price movements in Ireland. This report concluded that there is little evidence to suggest unwarranted delays in the passing on of wholesale price changes to the consumer at the pump. My Department is reviewing the methodology for collecting oil price statistics in Ireland with a view to ensuring this information is fully reflective of current market conditions, taking into account significant changes in the structure of the oil market in recent years. The EU is also reviewing price collection data across EU Member States to ensure greater consistency and transparency of published oil price data.