Written answers

Wednesday, 20 October 2010

Department of Communications, Energy and Natural Resources

Energy Prices

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 242: To ask the Minister for Communications, Energy and Natural Resources the extent to which energy price costs to the manufacturing or services sectors here compare with the prices applicable throughout Europe; and if he will make a statement on the matter. [38049/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

The Sustainable Energy Authority of Ireland (SEAI) collects and publishes energy statistics to support policy analysis and development in line with national needs and international obligations. The latest available comparative data from Eurostat is published by SEAI in their report "Electricity & Gas Prices in Ireland", published in May 2010. The data contained in this report covers the last six months of 2009. The data categorises businesses according to the level of their electricity consumption rather than the nature of their business.

The methodology used by SEAI and Eurostat reflects the actual cost of gas and electricity to final consumers as it incorporates all the factors in the cost of their use. The methodology is comprehensive and transparent and in each customer category, information is sought from each supplier regarding the volume of sales and the associated revenue. This allows computation of a national sales weighted unit price for electricity and gas for each customer category. The SEAI report shows that electricity prices for small businesses in Ireland are 3% below the Eurozone average. Electricity prices are between 2-4% above the Eurozone average for most other categories of business, but these figures still represent a significant improvement in Ireland's electricity price competitiveness compared to 2008.

SEAI has collected and submitted to Eurostat the electricity price figures for the first six months of 2010 and these national data show that Irish electricity price have continued to fall for all categories of business. In fact, the figures show that electricity prices for business have fallen by up to 45% in the past eighteen months. These will be published by SEAI as soon as the relevant comparative data from Eurostat becomes available. Many businesses have not yet switched their electricity supplier. It is estimated that almost 50% of small to medium enterprises may still avail of significant discounts simply by taking this step. It is important that all customers who are concerned about energy costs should shop around and take advantage of the value and choice available in the competitive electricity market. Business can also mitigate their energy costs by taking advantage of the energy efficiency programmes run by SEAI on behalf of the Government.

Given Ireland's dependence upon imported fossil fuels, the urgent need to fund much needed energy network investment, the size of our market and low population density it is a significant achievement that our electricity prices for the typical domestic consumer are below the Eurozone average, while those for business are close to the average and below many of our neighbours and competitors.

Comments

No comments

Log in or join to post a public comment.