Paul Kehoe (Wexford, Fine Gael)
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Question 134: To ask the Minister for Communications, Energy and Natural Resources when he will 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. [3387/10]

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 now 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 which are still regulated. They are also offering domestic consumers alternative billing arrangements and options for the level of renewable electricity they purchase.

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 Commission for Energy Regulation (CER) has made it clear that the regulation of ESB tariffs will discontinue when competition has taken firm hold in the market.

The CER is now working with ESB and with the other players in the market to develop a timeframe for deregulation of the regulated ESB tariffs in line with the emergence of competition of scale. On 2nd December last, the CER published its paper for consultation on the timing and conditions under which regulation of prices should be removed from ESB Customer Supply. The CER is also consulting on other actions to be taken, apart from the removal of the price control, in order to ensure a fully competitive deregulated electricity retail market. The closing date for submissions to this consultation paper is February 1st 2010. A clear roadmap for retail electricity deregulation will then emerge from this process.