Catherine Murphy (Kildare North, Social Democrats)
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141. To ask the Minister for Communications, Energy and Natural Resources if his Department or the Commission for Energy Regulation have conducted an analysis of the price gap between the wholesale and consumer price of energy; the results of this analysis; and if he will make a statement on the matter. [9335/16]

Alex White (Dublin South, Labour)
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The electricity and gas markets are commercial, liberalised, competitive and operate within national and European regulatory and legislative regimes. Responsibility for the regulation of Ireland's electricity and gas markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. I have no statutory function in the setting or review of electricity or gas prices. It is Government policy to encourage competition in the electricity and gas markets.

The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. There is no price control in the oil sector. I have no statutory function in the setting or review of oil, petrol or diesel prices.

In Statutory Instrument 630 of 2011 the CER was assigned, inter alia, market monitoring functions in relation to the supply of electricity and gas. These functions included monitoring the development of competition in the supply of electricity and gas to final customers and taking action to ensure that final customers are benefitting from competition.  In this regard, CER publishes quarterly market monitoring reports.

The Electricity Regulation Act, 1999 provides for CER’s regulatory independence and its accountability to a Committee of the Oireachtas for the performance of its functions. I note that at its most recent appearance in front of the Oireachtas Committee when prices formed part of the agenda, CER representatives described for members the relationship between wholesale and retail prices at that time and their view that retail competition is working in Ireland as evidenced by switching rates.

The CER also briefs me periodically on broad electricity and gas market developments including on its market monitoring reports. I am confident that the regulator is carrying out its functions effectively and that it will continue to ensure that competitive markets are delivering for all consumers.

Catherine Murphy (Kildare North, Social Democrats)
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142. To ask the Minister for Communications, Energy and Natural Resources his views on the cost of energy faced by consumers; if he has considered any options in this regard; and if he will make a statement on the matter. [9336/16]

Alex White (Dublin South, Labour)
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I am acutely aware of the financial challenges faced by consumers from high energy prices. However, it is important to note that the electricity and gas markets are commercial, liberalised, and competitive and that they operate within national and European regulatory regimes. I have no statutory function in the setting or review of electricity or gas prices.

Responsibility for electricity and gas market regulation is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. The CER ceased regulating retail electricity prices in 2011 and retail gas prices in 2014.

The competitive energy market results in choice for consumers and businesses in terms of suppliers, products and prices, exerting downward pressure on prices. Under various relevant Statutory Instruments, CER carries out statutory market monitoring functions and has the responsibility to ensure the market operates competitively for the benefit of the consumer. The statutory functions include monitoring whether the development and operation of competition in electricity supply is benefitting final customers. CER market monitoring reports are available on its website. In this regard I am confident that the regulator is carrying out its functions effectively and that it will continue to ensure that competitive markets are delivering for all consumers as I set out in the Energy White Paper published in December last.

The latest Eurostat average electricity and gas price statistics as published by the Sustainable Energy Authority of Ireland (SEAI) relate to the first half of 2015. The report shows that the vast majority of residential consumption bands in both electricity and gas experienced reductions in average prices in the first half of 2015.  Focusing on the consumption bands with the largest share of the market, Eurostat figures show that average prices for Irish residential gas consumers were 5% lower than the Euro Area average, while average prices for business gas consumers were 3% lower than the Euro Area average. Average prices for residential electricity consumers were 4% below the Euro Area average, while average prices for business electricity consumers were 6% above the Euro Area average.

 In recent public communications the CER indicated that if the current international trend in wholesale electricity and gas prices continued, there would be scope for price reductions for consumers in 2016. The announcement last week of further price reductions by Electric Ireland, following announcements by a number of suppliers in 2015, indicates that competition is working for the benefit of customers. While I have no statutory role in the setting or review of energy prices I welcome these reductions by energy suppliers in domestic gas and electricity prices.