Written answers

Thursday, 5 May 2016

Department of Communications, Energy and Natural Resources

Commission for Energy Regulation

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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144. To ask the Minister for Communications, Energy and Natural Resources to outline the regulatory function of the Commission for Energy Regulation in regard to cost and consumer protection; the basis for this in legislation; and if he will make a statement on the matter. [9338/16]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The Commission for Energy Regulation (CER) is Ireland’s independent energy regulator. The CER was established in 1999 and has a range of economic, customer protection and safety responsibilities in the energy sector.

The CER is also Ireland’s economic regulator of the public water and wastewater sector. The development of policy in the water area is the responsibility of the Minister for the Environment, Community and Local Government.

The CER was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation. Its regulation of the gas market is legally underpinned by the Gas (Interim) (Regulation) Act, 2002, as amended. The CER regulates water services under the Water Services Act 2013 and the Water Services Act 2014.

The CER ceased regulating electricity prices in 2011 and gas prices in July 2014. The electricity and gas markets are commercial, liberalised and competitive and they operate within national and European regulatory and legislative regimes. Prices are set competitively by suppliers.

The CER was assigned the function of market monitoring under the European Communities (Internal Market in Electricity) Regulation 2010, subsequently amended by the European Communities (Internal Market in Natural Gas and Electricity) Regulations 2011. Under these regulations the CER is charged with monitoring, inter alia, rates of customer switching, disconnection rates, customer complaints and whether the development and operation of competition in the supply of electricity and gas is benefiting final customers.  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 is also responsible for implementing energy specific consumer protection measures including, under the European Communities (Internal Market in Electricity and Gas) (Consumer Protection) Regulations 2011, obligations on every electricity and natural gas supplier to establish, publish and maintain in a form approved by the CER, Customer Codes of Practice and Customer Charters for household customers. The CER also provides a statutory complaints resolution service to customers with an unresolved dispute with their supplier or network operator.

The Energy (Miscellaneous Provisions) Act, 2006, assigned to the CER powers to regulate the activities of electrical contractors, natural gas undertakings and gas installers with respect to safety.

The Electricity Regulation Act, 1999 provides for CER’s regulatory independence and accountability for the performance of its functions to a Joint Committee of the Oireachtas.

Full details of the CER’s responsibilities and their legislative underpinning are available on the CER website at .

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