Jack Wall (Kildare South, Labour)
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Question 55: To ask the Minister for Communications, Energy and Natural Resources his views on the high price of electricity for small and medium businesses; the way Ireland compares with other European countries on electricity rates for business; the action he will take to make Ireland more competitive in this regard; and if he will make a statement on the matter. [24057/09]

Eamon Ryan (Dublin South, Green Party)
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The latest available comparative data from Eurostat, published by Sustainable Energy Ireland in their report "Understanding Electricity & Gas Prices in Ireland", which covers the first six months of 2008, shows that for the most common category of small and medium businesses, Irish electricity prices are slightly below the EU average. However, for larger energy users Irish electricity prices tend to be above the EU average.

Energy costs have been of concern to enterprise for a number of years. This concern has been exacerbated by the economic downturn and the overall serious challenges facing business. I have made it consistently clear that all possible action that can be taken must be taken to reduce energy costs for the enterprise sector. Energy policy actions are focussed on mitigating those costs where possible.

My Department is actively engaged on the energy costs issue with all relevant players, including the Commission for Energy Regulation (CER), ESB, the independent suppliers and the enterprise sector itself.

Already, all electricity users are benefitting from a reduction in electricity tariffs of 10% from May 1st, following completion of the review of regulated tariffs, which I requested in February last. In addition, since January 1st all electricity users are benefitting from nearly €400 million in rebates from ESB which have further lowered electricity costs to business. Electricity prices for large energy users in the enterprise sector are not subject to regulation and benefit from competition in this area. Many of these enterprises have seen substantial reductions in electricity prices in recent months due to the fall in gas prices.

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 shows that 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 is re-confirming that more cost savings can still be delivered.

There is also active competition between electricity suppliers in the SME market and companies can avail of discounts of up to 10% - 20% simply by switching suppliers. Already approximately 60% of SMEs have made this switch and are experiencing the benefits.

While I have no direct role in the setting of energy prices, whether in the regulated or non-regulated sector, my objective is to secure sustainable and diverse energy supply at least cost for Irish business and consumers. The Government's comprehensive range of energy policy actions are designed to deliver this objective.

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.