Written answers

Wednesday, 4 December 2013

Department of Communications, Energy and Natural Resources

Energy Prices

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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102. To ask the Minister for Communications, Energy and Natural Resources the extent to which energy costs here compare with those in other EU member states, eurozone and non-eurozone; and if he will make a statement on the matter. [52194/13]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Responsibility for the regulation of these markets is a matter for the Commission for Energy Regulation (CER) which is an independent statutory body. While I have no statutory function in the setting of energy prices, whether in the regulated or non-regulated market, I am acutely conscious of the impact of energy prices on citizens and businesses across Ireland. Similarly, I have no function in the setting of oil prices. The price paid at the pump by consumers is largely determined by taxation levels, the internationally traded price of crude oil and the consequent price that refined product is traded at in Europe, along with the level of competition in the retail market. The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. Upward trends in global oil prices underscore the Government’s commitment to delivering national energy efficiency and renewable energy objectives, which are aimed at moving the economy away from reliance on imported, carbon intensive fossil fuels such as oil.

Figures produced by the EU Market Observatory for Energy in its Oil Bulletin, in respect of prices in force on 25 November 2013, indicate that Ireland’s petrol and diesel prices are very close to those in the other Euro area Member States, especially when differences in taxes and duties are taken into account. Further information can be found at :

Ireland’s electricity and gas markets, both wholesale and retail, are characterised by vigorous competition, regulated by the CER. Competition puts downward pressure on prices. Prices in the retail electricity market are now fully deregulated. Since 1 October 2011, the residential gas consumer segment is the only segment of the electricity and gas markets where prices are regulated. Prices in the electricity market and the unregulated part of the gas market are wholly commercial and operational matters for suppliers.

The latest analysis of Eurostat data published by SEAI relates to the last six months of 2012. The link to this analysis is at: . It shows that half of Irish residential electricity consumers paid 7% more than the EU average for their electricity and a further 31% of consumers paid about 16% above the EU average. About 9% of households actually paid 5% below the EU average. Compared to other countries our ranking in these bands ranged from fourth to ninth most expensive. While Irish business paid up to 18% above the European average for electricity, the position for many medium firms, constituting over a quarter of the market, is they paid 8% above the EU average. Compared to other EU countries our ranking ranged from fourth to seventh most expensive across the small, medium and large bands.

As regards Irish residential gasconsumers, SEAI analysis shows that prices paid by the vast bulk of these consumers (94%) during the period were 6% below the EU average. Ireland’s ranking in this band was 11th highest at end December 2012. Prices in the two other residential bands ranked from eleventh to sixteenth most expensive. Gas prices paid by Irish business ranged between 6% below and 5% above the EU average during the period. Compared to other countries our ranking in the five bands ranged from 10th to 17th most expensive.

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