Joanna Tuffy (Dublin Mid West, Labour)
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To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the recent increases in prices for electricity announced by energy companies; the action proposed to help cushion low income households against these increases; and if he will make a statement on the matter. [43450/12]

Pat Rabbitte (Dublin South West, Labour)
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I have no statutory function in the setting of electricity prices, whether in the regulated or non-regulated parts of these markets. Responsibility for the regulation of the retail electricity market is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. Since 4 April 2011 prices in the electricity retail market have been fully deregulated and business and domestic customers can as a result avail of competitive offerings from a number of electricity supply companies. Price setting by electricity suppliers is a commercial and operational matter for the companies concerned.

Global gas and oil prices have risen sharply since the start of 2011 driven by events in the Middle East, North Africa and Japan and demand from the emerging economies of China and India. There are clear indications that international oil and gas prices will rise further over the coming months.

The Government is most concerned at the impact of higher electricity prices on residential and commercial consumers. As indicated above, it is the case that in the main Ireland is at the mercy of international fossil fuel prices which dictate the retail price of electricity. My focus is on those elements of energy costs over which policy can exercise some control.

Total grant funding of €109.267 million has been spent to date under the Better Energy programme on energy efficiency measures in 2011 and 2012. This includes funding for over 198,000 measures in households under the Better Energy: Homes scheme. Under, the Better Energy: Warmer Homes Scheme, which provides grant assistance for low income families, €45 million has been specifically allocated to energy poor homes by directly retrofitting through the use of Community-Based Organisations (CBOs), private contractors and a new area-based pilot that is being undertaken this year. In addition the Government is actively supporting the rollout of renewable resources of electricity which has grown from an estimated 9.3% of electricity consumed in 2007 to an estimated 17.6% in 2011.

There are a number of avenues open to consumers to try to mitigate rising on electricity prices, and measures are also in place to assist them. Accordingly, consumers can shop around to get the best possible price and service deal from suppliers bearing in mind that other suppliers can and do offer competitive prices and products. Consumers can also take steps to improve the efficiency of their electricity usage which delivers demonstrable savings. The CER is also working with energy suppliers to ensure that vulnerable customers are protected through, inter alia, the installation of Pay As You Go meters.

The long term policy responses for Ireland to combat vulnerability to high and volatile gas prices continue to be increasing the use of renewables, better energy efficiencies and reducing the reliance on gas in the fuel mix. Implementation of the measures set out in the Government’s Affordable Energy Strategy is also key to protecting the interests of vulnerable customers.

The Affordable Energy Strategy was published in November 2011 and developed by the Inter-Departmental/Agency Group on Affordable Energy (IDGAE) as part of the Departments commitment in the Programme for Government to help mitigate energy poverty. The Affordable Energy Strategy provides a framework for building upon the many measures already in place to protect households at risk from the effects of energy poverty, which include the thermal efficiency-based measures delivered through the Better Energy: Warmer Homes programme.

There are forty-eight actions identified in the strategy to be implemented over the life-time of the report (3 years). Five priority measures are identified including a commitment to review the National Fuel Scheme in the context of examining the feasibility of aligning income supports with the energy efficiency and income of the home, the phased introduction of minimal thermal efficiency standards for rental accommodation, ensuring greater access to energy efficiency measures, reforming the eligibility criteria for energy efficiency schemes and the introduction of an area based approach.

I have allocated €23.647 million in 2012 to the alleviation of energy poverty which will be disbursed through a combination of community based organisations, private contractors and via an area-based approach.