Emmet Stagg (Kildare North, Labour)
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Question 69: To ask the Minister for Communications, Energy and Natural Resources if reports that he intends to raise network charges for electricity and gas suppliers later in 2010 are accurate; if this move will result in higher residential utility bills; and if he will make a statement on the matter. [23021/10]

Eamon Ryan (Dublin South, Green Party)
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The setting of electricity and gas network tariffs is the statutory function of the independent energy regulator, the Commission for Energy Regulation (CER).

The CER reviews electricity and gas network charges on an annual basis and publishes its decision on these each summer, following a detailed consultation process. These charges are then included in the determination of final retail tariffs, both for ESB and BGE regulated tariffs, and for the prices offered by independent suppliers in the electricity and gas markets.

Network charges are only one component of final retail tariffs. In recent years, the most significant factor in determining both electricity and gas retail tariffs has been the wholesale price of gas.

In addition to the annual reviews, the CER is also close to completion of the third review in its cycle of 5-year reviews of electricity network expenditure, which also set the framework for the transmission, distribution and supply elements of the tariff for the subsequent five years. The first review in the cycle commenced in 2000 with a programme of significant infrastructure investment to address the deficit left by two decades of under-investment in our networks. The outcome of the current network review will come into effect on Oct 1st 2010 for the five year period to 2015.

The review is designed to ensure that ESB and EirGrid make even greater efficiencies in operational and capital expenditure relating to networks, thus minimising costs for consumers, while at the same time facilitating vital investments in electricity networks to ensure security of supply, facilitate the increased penetration of renewable generation and underpin the transition to a low carbon economy.

The provision of secure competitively priced energy supplies and the delivery at least cost of strategic energy infrastructure are central to the Government's core economic strategy of growing the smart economy with a thriving enterprise sector and high quality employment.

Bernard Durkan (Kildare North, Fine Gael)
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Question 70: To ask the Minister for Communications, Energy and Natural Resources the steps he has taken or proposes to take, directly or through the aegis of the energy regulator, to reduce the price to the consumer of petrol, diesel and home heating oil, having particular regard to the decline in prices on world markets; if he has sought any clarification from or issued any instructions or directives to the regulator with a view to bringing about a reduction in energy prices commensurate with market trends in view of the necessity to reduce energy costs to the domestic, commercial, agricultural and industrial sector at this time of economic need; and if he will make a statement on the matter. [23050/10]

Eamon Ryan (Dublin South, Green Party)
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The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. The Commission for Energy Regulation (CER) has no function in relation to the price of petrol, diesel or home heating oil. There is no price control on petroleum products and it has been the policy objective of successive Governments to promote price competition and consumer choice. The CER therefore has no role in relation to the oil supply market.

On foot of a request from my colleague, the Minister for Enterprise, Trade and Employment, the National Consumer Agency (NCA) undertook a survey on retail prices of petrol and diesel. The NCA completed its report in December, 2008, which is available at www.consumerconnect.ie.

The NCA Report noted that the prices that Irish retailers charge for oil products relate to the refinery price rather than to the price of crude oil. The refinery price for oil products varies with demand and does not always move in line with crude oil prices. There is a time lag between movements in crude prices and refined prices. The current prices at the pump reflect global market price, which is fluctuating, transportation costs, euro/dollar fluctuations and other operating costs as well as the impact of taxes on oil products. Price differences are an ongoing feature of the market economy.

Government policy in relation to energy is strongly focussed on reducing the impact of fossil fuel prices on consumers and business, through the promotion of alternative renewable resources, energy efficiency, security of supply and greater competition.

The Government's energy efficiency and renewable energy programmes are aimed at moving Ireland's economy away from reliance on imported, carbon intensive fossil fuels, which display ongoing price volatility. The objective is to ensure the long term protection of the domestic, commercial and agricultural sectors in the context of energy affordability.

The National Energy Efficiency Action Plan, published in May 2009 identifies an overall energy savings target of 32,000 GWh to be achieved in 2020, representing approximately €1.6 billion in annual energy cost reductions.

Grant aid to move to renewable heating has also been provided in the domestic Greener Homes Programme and the Reheat Programme, allowing householders, businesses and local enterprises to move away from oil fired heating towards more efficient and sustainable forms of heating such as solar, geothermal and biomass heating.

In the transport sector, we are supporting a move away from imported oil through the introduction of biofuels into the fuel chain and an electric vehicle programme.

Following on the Biofuels excise relief programme introduced in 2005, the Biofuel Obligation Scheme is scheduled to commence in July 2010 and will compel fuel suppliers to include 4% biofuels in their overall annual fuel sales. The National Obligation will incentivise and enable the sustainable growth of the Irish biofuels market and support indigenous biofuel producers, allowing for the displacement of traditional oil products in the transport sector.

In addition to the Biofuels Obligation Scheme, I have announced a target of 10% of all vehicles to be powered by electricity by 2020, which equates to around 225,000 vehicles. Electric vehicles are likely to play an important role in reducing our reliance on imported fossil fuels. The VRT exemption for electric vehicles and the VRT reliefs of up to €2,500 for plug-in hybrid vehicles are already incentivising the roll out of alternative engine technologies. I have also announced the introduction of a grant scheme for up to 6,000 vehicles over a two year period from January 2011, which will provide grants of up to €5,000 for full battery electric vehicles and up to €2,500 for plug in hybrid electric vehicles. The grant scheme will be administered by the SEAI and full details will be published in advance of the scheme commencement date of Jan 2011. Working with ESB, who are rolling out the relevant technology, I have signed agreements with a number of car manufacturers with a view to making early production electric vehicles available to the Irish market.

The range and breadth of programmes which have been introduced by the Government demonstrate our commitment to reducing the impact of high fossil fuel prices, enhancing security of supply and ensuring sustainability.