Written answers

Tuesday, 17 May 2011

Department of Communications, Energy and Natural Resources

Energy Prices

6:00 pm

Photo of Dan NevilleDan Neville (Limerick, Fine Gael)
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Question 314: To ask the Minister for Communications, Energy and Natural Resources his views on the recent announcement from ESB Electric Ireland on the introduction of reduced tariff for their customers; and if he will make a statement on the matter. [11769/11]

Photo of Pat RabbittePat 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. I welcome the recent ESB announcement of price cuts of up to 17% for electricity and gas customers on foot of the de-regulation of the retail electricity market. This is a positive example of competition at work in the market which should have good results for consumers.

Photo of Dan NevilleDan Neville (Limerick, Fine Gael)
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Question 315: To ask the Minister for Communications, Energy and Natural Resources if he will ensure customers in receipt of the free electricity allowance who need discounts more than most will be included in the new ESB package; and his views that the insistence that customers must actively request that they be put on the new lower rates would exclude many categories of citizens, for example the elderly and the disabled. [11770/11]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The Household Benefits Package, of which the "free electricity allowance" is part, is a matter for the Minister for Social Protection and the administration of that package is for the Department for Social Protection.

Some 340,000 households are recipients of the free electricity allowance as part of this package from the Department for Social Protection. Recipients of the free electricity allowance, including the elderly and the disabled, receive 2,400 free units of electricity per year, minimising or eliminating bills for these consumers.

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.

In the deregulated electricity sector, enhanced market monitoring is now a key function of the CER. Mindful of potential changes in an increasingly competitive market and the possible discrimination that could occur on prices between different customer groups, the CER have issued a decision paper on Price Discrimination and Customer Protection in the Deregulated Electricity Market (CER/11/059 -13th May 2011). The decision states that CER will not impose a mandatory obligation of non-discrimination on any supplier in the market at this time, as it considers it premature to impose such as condition. The CER will continue to monitor the market and will identify appropriate remedies where necessary.

The offerings of discounts and their application to customers is a commercial decision for all electricity suppliers including ESB Electric Ireland. I have no function in these decisions. Following deregulation, ESB Electric Ireland has introduced a range of new Price Plans, reflecting normal competitive practices in the deregulated energy market. I welcome the ESB's announcement of price cuts of up to 17% for electricity and gas customers.

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