Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 528: To ask the Minister for Communications, Energy and Natural Resources the extent to which energy price costs to the manufacturing or service sectors here compares with the prices applicable throughout Europe; and if he will make a statement on the matter. [3822/10]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 529: To ask the Minister for Communications, Energy and Natural Resources the extent to which the price of gas, electricity and motor fuel costs here compare with those throughout each of the EU Member States; and if he will make a statement on the matter. [3823/10]

Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I propose to take Questions Nos. 528 and 529 together.

Sustainable Energy Ireland (SEI) collects and publishes energy statistics to support policy analysis and development, in line with national needs and international obligations. Every six months SEI publishes a report on Understanding Electricity and Gas Prices in Ireland, which details electricity and gas prices to every category of domestic and industrial user and compares those figures with other Member States of the European Union.

The latest SEI report was published on January 24th 2010 and contained comparative price data to 30th June 2009. I have requested SEI to send a copy of this report to the Deputy but broadly speaking the report found that falling electricity and gas prices are bringing Irish energy costs closer in line with and, in some cases below, European averages.

Ireland experienced the third largest price drop in electricity prices to industry across the entire EU over the 12 month period ending on 30th June 2009. At the same time, 22 of 27 EU countries experienced price increases. Gas prices also continued to fall with a result that gas prices are now 7% to 10% below the EU average in the two main consumption bands for business.

As well as comparative figures, SEI's report also provides valuable insight into the drivers of higher energy costs in our market. Our high energy costs are primarily due to significant dependence on volatile imported fossil fuels, particularly gas, as well a requirement for very significant investment in energy infrastructure, following two decades of under-investment in the networks. The under-investment in networks and power generation posed real risks to security of supply which had become a major concern for enterprise.

The Government remains firmly committed to increasing competition as the best means of exerting downward pressure on energy prices, and also towards ensuring diversity of energy supply to reduce our exposure to high and volatile external energy prices. Significant progress has been made to date, most notably with the all-island Single Electricity Market now in place, the sale of ESB generation capacity, entry of new players and new generation capacity coming on-stream in the Irish market.

The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. There is no price control on petroleum products and prices at the pump reflect global market price, transportation costs, euro/dollar fluctuations and other operating costs. Price differences are an ongoing feature of the market economy and it is a matter for retailers to explain price differences where they occur.