Written answers

Tuesday, 1 June 2010

Department of Communications, Energy and Natural Resources

Energy Prices

10:00 am

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 38: To ask the Minister for Communications, Energy and Natural Resources his views on the energy regulator's announcement of a roadmap to enable ESB to set its own prices; his views on a rebranding requirement for ESB; if this will include its retail brand; and if he will make a statement on the matter. [23027/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I welcome the decision by the Commission for Energy Regulation (CER) on the roadmap for electricity price deregulation. This is an important step on the path to developing a fully competitive electricity market in Ireland.

This decision demonstrates that Government policy to encourage competition is paying dividends through lower prices and greater choice for Irish homes and businesses.

The outcome of the roadmap decision is that ESB retail tariffs for all business customers will no longer be regulated by the CER from the autumn. The decision paper also sets out the criteria for deregulation of tariffs in the domestic market in the foreseeable future. Among these criteria is a commitment from ESB on the rebranding of ESB Customer supply.

The CER decision follows an in-depth consultation which received 21 submissions from electricity market participants and industry and consumer representative groups. The process also drew on the results of a joint CER/Northern Ireland Authority for Utility Regulation customer behaviour survey. The survey found that 28% of domestic customers believe that their electricity supplier is responsible for power failure repair and 25% believed their supplier was responsible for grid maintenance.

This demonstrates that there is confusion among some domestic customers as between the role of the supply companies and the role of the network companies.

The third EU electricity market Directive requires that vertically integrated distribution system operators such as ESB shall not, in their communication and branding, create confusion in respect of the identity of the supply branch of the utility.

In that legal context and in support of competition it is important and indeed necessary to address the ESB branding issue. I fully expect ESB and the CER to agree a solution which supports the further development of competition, is in the best interests of Irish electricity consumers and takes account of any legitimate concerns.

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