Bernard Durkan (Kildare North, Fine Gael)
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Question 218: To ask the Minister for Communications, Energy and Natural Resources his proposals to improve the competitiveness in the energy sectors having particular regard to the ever-growing economic needs; and if he will make a statement on the matter. [10672/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 221: To ask the Minister for Communications, Energy and Natural Resources the action he will take to ensure the immediate reduction in energy costs here having particular regard to the ever pressing economic needs of the manufacturing or service sectors; and if he will make a statement on the matter. [10675/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 218 and 221 together.

At my request a number of weeks ago, the Commission for Energy Regulation (CER) undertook an urgent review of options to bring forward a reduction in energy prices for business and domestic consumers. The need for an early review was underlined by the various cost pressures facing Irish businesses in the present economic climate.

The CER has concluded that the best way of delivering a reduction in electricity prices in the short term is through the deferral of both transmission and distribution network revenues. From May 1st, €165 million of network revenue will be deferred for five months and recovered over the following twelve months.

Downward trends in global gas prices and higher sales of gas by BGÉ during the cold winter months, have also allowed the CER to bring forward a 12% reduction in BGÉ's regulated gas tariffs to residential and small industrial and commercial customers to May 1st.

In addition, over the last six months many large energy users have already experienced reductions of up to 25% in their energy costs. This is because they are on flexible tariffs which track movements in gas prices and they have benefitted immediately from the reducing gas prices, albeit from the peak prices of mid 2008.

Energy costs are an issue for the enterprise sector but although energy costs are relatively high in Ireland, Irish industries tend to have relatively low energy cost intensities. There are a number of exceptions, notably cement and alumina but typically, Irish large industry has energy intensities of the order of 1% to 3%. Less than 100 industrial enterprises in Ireland, representing less than 1% of sectoral employment, have an energy intensity greater than 10%.

Energy support programmes, offered by Sustainable Energy Ireland (SEI), are proving very successful in helping businesses reduce their energy usage and hence their costs. The activity is proving that quite significant savings are achievable, even among firms that have been active in energy efficiency for some time. Many firms are making significant gains and Irish industry is developing an international reputation for its efficiency activity.

Long run data from the Large Industry Energy Network show that large firms that have engaged with SEI over several years have on average made efficiency gains of 33% beyond what otherwise would have been achieved. This is a very significant saving, and each year the data are re-confirming that more cost savings can still be delivered.

Ensuring a competitive, cost effective and sustainable energy sector is a key means of exerting downward pressure on energy prices, reducing our reliance on imported fossil fuels and enhancing security of supply. The full range of actions that the Government Energy Policy Framework 2007-2020.

These actions include, but are not limited to, delivering competition and consumer choice through continuing the market liberalisation process. In doing so we will ensure that the regulatory framework can meet the evolving energy policy challenges and focus, in particular, on creating jobs, growth and innovation in the energy sector. These actions are essential to delivering an energy sector that provides a reliable and competitively priced energy supply in support of economic renewal and competitiveness.