Noel Ahern (Dublin North West, Fianna Fail)
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Question 179: To ask the Minister for Communications, Energy and Natural Resources the reductions in price of gas that have been implemented since September and October 2009; and the cumulative price decrease over the past two years. [9804/10]

Eamon Ryan (Dublin South, Green Party)
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Responsibility for the regulation of natural gas prices is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. I have no function in setting or regulating energy prices. The CER regulates the domestic and small business customer tariffs charged by Bord Gáis Energy Supply. It does not regulate the large industrial segment of the market.

From early 2007, there was a significant upward trend in wholesale fossil fuel prices resulting in prices reaching all-time highs during the summer of 2008. In a departure from the normal cycle, in August 2008 the CER took action to protect the interests of energy consumers from these highs, particularly vulnerable consumers. Following a review, the CER approved a two-phase approach to tariff setting. With effect from September 2008, an interim 20% increase in tariffs for residential and small industrial and commercial customers was approved. Further downward shifts in wholesale gas prices post summer 2008 resulted in no change in the existing gas tariff from 1 December 2008 under Phase 2 decision of that tariff-setting process.

Sustained lower global gas prices, among other factors, led to the CER decision to reduce tariffs for the gas sector by 12% from 1 May 2009 and was followed by a further tariff reduction of 9.8%, which took effect on 1 October 2009. Most recently, the CER tariff decision from 1 February 2010 has resulted in a further tariff reduction of 8%. These decisions have been made possible largely by continuing downward shifts in international gas prices. The effect of these decisions has resulted in a cumulative price decrease of approximately 12% since February 2008.