Billy Kelleher (Cork North Central, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources the way he is making energy more affordable; and if he will make a statement on the matter. [4748/13]

Pat Rabbitte (Dublin South West, Labour)
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I have no statutory function in the setting of gas or 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 operating in the retail market.

With regard to the regulation of gas prices the position is that up until 1 October 2011 the CER regulated Bord Gáis Energy tariffs for its residential and smaller business customers but price regulation for the latter group ended at that point. The CER still regulates the Bord Gáis Energy tariffs for its residential customers. The timing for complete deregulation of the residential segment of the gas market, as has taken place in the electricity market, is an issue under active review by the CER. In making its decision on gas tariffs, the CER takes account of the need to protect consumers from unnecessary price increases by ensuring that only reasonable legitimate costs are recovered by BGE. Full deregulation leading to further competition will keep downward pressure on prices for consumers.

The Government is most concerned at the impact of higher energy prices on residential and commercial consumers. It is the case however, that Ireland in the main, is at the mercy of international fossil fuel prices which dictate the retail price of electricity and gas, which is the key factor in the retail price of both electricity and gas. In particular, Ireland is a price taker for gas. My focus is on those elements of energy costs over which policy can exercise some control. 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 Department’s commitment in the Programme for Government to help mitigate energy poverty. There are forty-eight actions identified in the strategy to be implemented over the lifetime 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.

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. Exchequer funding of over €101 million has been allocated to the programme since 2000 and has successfully delivered energy efficiency measures to 92,563 homes through a combination of community based organisations, private contractors and via an area-based approach. The Government will continue to support the delivery of energy efficiency measures to vulnerable households in 2013. Better Energy Warmer Homes has been allocated €20 million for this purpose.

There are also a number of avenues open to consumers to try to mitigate rising electricity prices and measures are also in place to assist them. Accordingly, consumers can, and should, shop around to get the best possible price and service deal from suppliers, and switch supplier if necessary, bearing in mind that all 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, including availing of Government funded measures as already referred to above. 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.