Lucinda Creighton (Dublin South East, Fine Gael)
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Question 23: To ask the Minister for Communications, Energy and Natural Resources when he will change the regulatory model for setting the price in respect of domestic household electricity in order to allow the ESB compete on price; and if he will make a statement on the matter. [24154/09]

Eamon Ryan (Dublin South, Green Party)
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I welcome the fact that the benefits of competition in electricity supply, which have previously been confined to large industrial and commercial customers, are finally available to domestic consumers. The entry into the domestic electricity market of two new suppliers, Airtricity and Bord Gáis Energy, demonstrates that policy to encourage competition in electricity generation and supply is paying dividends for consumers.

The independent suppliers are offering discounts of between 10% and 14% on ESB tariffs. These discounts apply even after the recent 10% reduction to ESB prices implemented by the Commission for Energy Regulation (CER).

The independent suppliers are also offering domestic consumers fresh choices, such as the proportion of renewable electricity they purchase, as well as alternative billing arrangements.

Domestic customers have been switching to the independent suppliers in unprecedented numbers. However, there are close to 2 million domestic electricity customers and that ESB still retains approximately 90% of the market share.

The regulation of ESB tariffs will only continue until competition has taken firm hold in the market. Energy price regulation is designed to ensure that a dominant player cannot engage in uncompetitive, short-term pricing practices, which could undermine or drive out emerging competition.

The CER will continue to review overall energy tariff structures over the coming months taking account of global fuel prices, the importance of regulatory and market certainty for the energy sector and the competitiveness challenges facing industry.