Shane McEntee (Meath East, Fine Gael)
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Question 58: To ask the Minister for Communications, Energy and Natural Resources when he intends to change the regulatory model for setting the price of domestic household electricity in order to allow the ESB to compete on price; and if he will make a statement on the matter. [43303/09]

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 also 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 unit rates. These discounts apply even after the 10% reduction in ESB prices implemented by the Commission for Energy Regulation (CER) from May 1st 2009. 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 ESB still retains some 80% of the market share in this category.

The CER has made it clear that 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 has been working with ESB and with the other players in the market to develop a timeframe for deregulation.

In a tariff decision paper published on September 3rd 2009, the CER set out its commitment to the short to medium term removal of all price regulation provided there is the continued development of the appropriate levels of sustainable competition in all sectors of the market. I welcome the CER's commitment to publish a 'Roadmap' for deregulation in the near future.