Nicky McFadden (Longford-Westmeath, Fine Gael)
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510. To ask the Minister for Communications, Energy and Natural Resources if he will outline the way a greater focus on developing energy efficiency can contribute to job creation; if investment will be secured at EU level for modern energy infrastructure; if the challenge posed by high energy prices will be addressed; and if he will make a statement on the matter. [26702/13]

Pat Rabbitte (Dublin South West, Labour)
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Investments in energy efficiency are associated with job creation in two principal ways. Firstly, jobs are supported directly through initiatives to install energy efficiency technologies and systems (including the manufacture and supply of energy efficiency technologies). Secondly, energy efficiency gains lead to additional spending power which supports additional induced jobs. Experience from recent grant schemes suggests that, based on induced labour spend, it can be estimated that almost 450 jobs are directly supported for a year for every €10 million of Exchequer expenditure, rising to 675 when indirect jobs are included. This is before competitiveness impacts due to reduced energy costs are taken into account. It is also clear that such investment bolsters the government position in relation to increased take from VAT and employment levies in relation to this activity.

In relation to the matter of securing investment at EU level for modern energy infrastructure, the European Commission estimates that the European energy system requires €1 trillion in investment by the year 2020. At the European Council of 22nd May last, it was noted that significant investments in new and intelligent energy infrastructure are needed to secure the uninterrupted supply of energy at affordable prices and that the financing for such investments should primarily come from the market. All stakeholders in the European energy system, including Governments, regulators, energy industry and energy consumers, as well as the Europe Union's institutions such as the Commission, have parts to play in ensuring the required investment is achieved.

In this context, the implementation of EU Regulation 347/2013 on Guidelines for trans-European energy infrastructure, known as the Energy Infrastructure Package, should assist in securing that investment. The Regulation provides for measures to ensure the timely implementation of major European-scale energy projects, such as the streamlining and acceleration of permitting processes. It also sets out the conditions for eligibility of these projects for European Union financial assistance under the associated forthcoming EU financial instrument, the Connecting Europe Facility.

Regarding the challenge of high electricity and gas prices, responsibility for the regulation of the electricity and gas retail market is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. Prices in retail markets are fully deregulated. Prices are set by suppliers and are commercial and operational matters for them. I have no statutory function in the setting of electricity prices. Customers can, and should, avail of competitive offerings from electricity and gas suppliers and thereby mitigate the impact of high prices.

Electricity and gas prices in Ireland are influenced by various drivers, including global gas and oil prices, the costs of capital, exchange rate fluctuations, the small size of the Irish market, geographical location and low population density. The most important factor affecting electricity prices in Ireland is the continuing upward trend in international gas prices. This feeds directly through to retail electricity prices, as most of our electricity is produced at gas-fired stations. International fossil fuel prices are the major influences on Irish retail electricity and gas prices.

The competitive energy market in place helps put downward pressure on retail prices. In addition, we must focus on all possible additional actions to mitigate controllable costs for business and domestic customers, including rigorous regulatory scrutiny of the network costs component of retail prices. Action in these areas reduces Ireland's exposure to uncontrollable, and on occasion high, prices of imported fuels.

As well as its positive job creation potential, energy efficiency is an area within our control where action can be taken to reduce energy costs. There are energy efficiency schemes in place to assist business and domestic electricity and gas consumers, including the forthcoming Energy Efficiency Fund and programmes administered by the Sustainable Energy Authority of Ireland (SEAI). Additionally, the promotion of indigenous sustainable sources of energy can help offset the impact of volatile fossil fuel prices. The Government has a renewable electricity target of 40% by 2020. Good progress has been made in meeting this target and its realisation will introduce more certainty in the energy fuel mix as well as security of supply.