Tom Hayes (Tipperary South, Fine Gael)
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Question 79: To ask the Minister for Communications, Energy and Natural Resources when he plans 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. [10205/10]

Eamon Ryan (Dublin South, Green Party)
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The entry into the domestic electricity market last year 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.

Bord Gáis Energy and Airtricity 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 as well as consumer and business groups, to develop a timeframe for deregulation of the regulated ESB tariffs through 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 discontinued for 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 on the CER's consultation paper was 1st February last. I understand the CER received a wide range of submissions which are now being analysed. A clear roadmap and timeframe for retail electricity deregulation for domestic customers as well as SMEs will result from this process in the coming months.