Tommy Broughan (Dublin North East, Labour)
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Question 431: To ask the Minister for Communications, Energy and Natural Resources his views, in the context of the recent decision by Bord Gáis to hike up prices by 12% for consumers, that the interests of energy consumers are not being properly represented by the Commission for Energy Regulation; the way consumers are protected in the energy regulation market; his plans to strengthen CER; and if he will make a statement on the matter. [22177/11]

Pat Rabbitte (Dublin South West, Labour)
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I have no statutory function in the setting of electricity and gas prices, whether in the regulated or non-regulated market. 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. Prices in the electricity retail market are now fully deregulated. Price setting by electricity suppliers, including Bord Gáis, is a commercial and operational matter for the companies concerned.

The CER was established in 1999 to regulate the electricity sector in Ireland. In 2002 its remit was extended to cover the natural gas market. The CER is independent of all operators in the market and acts in the best interest of energy customers in Ireland by working to ensure that consumers benefit from a competitive regulatory framework in energy markets.

There have been sustained increases in global fossil fuel prices in recent months and this is putting pressure on all energy suppliers' margins. Ireland has a high dependency on imported fossil fuels, particularly gas which coupled with geographic isolation and population dispersal means that Ireland is price taker in the international gas market.

The CER has implemented a series of decisions over recent years designed to enhance and protect the rights of consumers and ensuring that operators in the market comply with their obligations to consumers. As part of its standard decision making processes, the CER holds consultations with all interested parties in advance of making any decisions on consumer issues. An example of a recent policy change in a consumer protection area was policy on disconnections. In late 2010, the CER decided to temporarily reduce the cost of disconnection for electricity and gas and decided to divide the cost of disconnection equally between the supplier and customer. This was done in response to the large number of disconnections taking place and to encourage suppliers to engage with customer and consider alternative options to disconnection.

Also, in response to the increase in the accumulation of debt from various suppliers, the CER recently announced in June 2011, after consultation with the Society of St. Vincent de Paul and the Money Advice and Budgeting Service, the introduction of a debt flagging facility. This alerts supply companies when customers wishing to switch supplier already have outstanding electricity bills above a certain level. These flags are as follows: for domestic electricity and gas customers, when they owe more than €250 for over 42 days, and for small business when they owe more than €750 for over 42 days.

Statutory Instrument 450/2010 on Market Monitoring for Electricity and Gas markets was signed in October 2010. The Statutory Instrument includes consumer protection provisions in market monitoring that have given the CER additional powers and functions in this area as required by the EU Internal Energy Market Directives. The EU Directive also contains provisions requiring Member States to enhance consumer protection provisions and provisions for vulnerable customers. At present my Department is currently drafting the requisite Statutory Instrument to give legal effect to the consumer and vulnerable customers provisions in the relevant Directive, although, in practice many of the functions are already currently undertaken by the CER.