Mary Upton (Dublin South Central, Labour)
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Question 668: To ask the Minister for Communications, Energy and Natural Resources if he will respond to a query by a consumer (details supplied) regarding the belated reduction in gas prices and the affect that this has had on consumers. [12529/10]

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. The CER regulates the domestic and small business customer tariffs charged by Bord Gáis Energy (BGE).

In the current economic climate, I fully understand that customers are concerned about energy costs and the impact of commodity price trends on the prices that they face.

Lower global gas prices, among other factors, led to the CER decision exceptionally in advance of the normal cycle to reduce tariffs for the gas sector by 12% from 1 May 2009. This was followed by a further tariff reduction of 9.8%, which took effect on 1 October 2009.

As part of an interim tariff review focussed largely on addressing subsequent downward movement in gas commodity prices, on 3 September 2009 the CER directed BGE to submit updated gas commodity cost and sales volumes (including actual and forecast data) during November. Examination by the CER of that data, including actual figures to end October, allowed the CER to undertake a consultation process proposing an 8% tariff decrease with effect from 1 February 2010. On 6 January last, the CER directed BGE to decrease the tariff with effect from 1 February by an average of 8% for domestic and SME customers. This meant that there has been 3 successive price decreases since 1 May 2009 amounting to a cumulative 27% reduction between 1 May 2009 and 1 February 2010.

I am satisfied that the specific measures taken by the CER, following on a sustained downward trend in gas commodity prices, have been timely and positive for consumers. I do not regard the claim that the most recent reduction was belated as justified in the light of the facts as outlined above.

I am confident that the CER will continue to work with stakeholders to ensure that the benefits of sustained price downturns are reflected in cost-reflective tariff decisions in a timely and appropriate manner.