Lucinda Creighton (Dublin South East, Fine Gael)
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Question 68: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the action, in view of persistent complaints by businesses over high energy costs and its impact upon jobs, she has taken to help businesses in this regard; if she has made submissions to the Commission for Energy Regulation or to the Department of Communications, Energy and National Resources over energy prices; and if she will make a statement on the matter. [19908/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am conscious that energy costs for businesses in Ireland are a source of concern, particularly as businesses are attempting to cut costs to remain competitive in the current economic environment. However, in recent months, the trend of energy prices has been downward. In response to this trend, the Commission for Energy Regulation lowered electricity prices for residents and Small and Medium Enterprises by 10% from 1 May. Gas prices were reduced by an average of 12%. Large industrial users of electricity are in an unregulated market and market players are free to compete on price, with large companies able to switch to lower cost suppliers.

According to the latest published Eurostat comparisons, smaller SMEs are paying 1% below the average EU 27 price - approximately 60% of ESB's SME customers are in this category.

Greater competition will enhance current downward pressures on energy prices. New market entrants, both in electricity generation and in supply will support this trend. Recent entrants to the residential and SME market include Airtricity and Bord Gáis. They are offering discounts of between 10 and 14% on current ESB tariffs. Already, over 120,000 customers have transferred their electricity accounts to Bord Gáis Electricity. The Government recently approved the construction of an East-West electricity interconnector that will further enhance competition. The Single Electricity Market, in operation since November 2007, has ensured a more reliable network, improving competition and increasing downward pressure on prices.

On 8 May the Government launched the National Energy Efficiency Plan. This reiterates that the best method for businesses to cut energy costs is through energy efficiency. The new Plan includes advice and mentoring for Small and Medium Enterprises on how best they can reduce their energy costs. In addition, the Government have provided incentives to business to purchase energy efficient equipment and we will continue to promote energy efficient best practice. Sustainable Energy Ireland also offers a broad range of assistance to enterprises in achieving significant savings.

My Department and the Agencies of my Department work closely with the Department of Communications, Energy and Natural Resources and the Commission for Energy Regulation on an ongoing basis. Together with the Minister for Communications, Energy and Natural Resources, I have given the highest priority to the issue of energy prices at Cabinet level.

We are working towards possible mechanisms to promote downward pressure on price and enhance competition in the market. This includes the commitment in the Framework document, Building Ireland's Smart Economy, published last December, to undertake a fundamental review of energy prices and tariff methodologies used by the Commission for Energy Regulation. This will take account of the needs of all energy consumers, including the vital need to support competitiveness.