Michael McGrath (Cork South Central, Fianna Fail)
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Question 33: To ask the Minister for Communications, Energy and Natural Resources the steps he will take to reduce energy prices. [6646/11]

Pat Rabbitte (Dublin South West, Labour)
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I have no statutory function in the setting of energy prices, whether in the regulated or non-regulated sector. Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. The electricity retail market is now fully deregulated as of 4 April and the CER are engaged in progressive de-regulation of the gas retail market. As a result, business and domestic customers can now avail of the competitive offerings from a number of electricity supply companies.

I welcome ESB's announcement yesterday of price cuts of up to 17% for electricity and gas customers. This is a further positive example of competition at work in the market with good results for consumers. As I outlined to the house earlier I have asked ESB to pay particular attention to the needs of customers with genuine payment problems and who want to avail of the price cuts.

Competition helps to put downward pressure on energy prices. But the Government is concerned to ensure that all possible additional actions are taken to mitigate business and for domestic customers. This is essential for competitiveness, for employment and for the economy as a whole.

I acknowledge the action taken over the last two years to bring Ireland's energy prices into line with, or below, European averages. This is confirmed by Eurostat figures for 2010.

This has been an important factor in improving the competitiveness for Irish enterprise and foreign direct investment. However, there is no room for complacency. Global gas and oil prices have risen sharply since the start of the year driven by events in North Africa and Japan and high demand from the emerging economies of China and India. Ireland's concerns about the risk of price rises are shared by the European Union. Oil and gas prices and security of supply were discussed at the Special Energy Council on 21st March which I attended. We agreed at Council that high energy prices, if sustained, would endanger economic recovery. We also agreed on the imperative to enhance energy efficiency and renewable energy programmes thus reducing dependency on high priced fossil fuels. My Department will continue to work with the enterprise community, the energy sector, and the energy regulator to take action where possible to reduce the cost of energy for business, domestic customers and for vulnerable customers.