Timmy Dooley (Clare, Fianna Fail)
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274. To ask the Minister for Communications, Energy and Natural Resources his views on the reported new peak time bill rates to be introduced by the ESB; the impact this will have on domestic electricity prices and usage; and if he will make a statement on the matter. [31429/16]

Denis Naughten (Roscommon-Galway, Independent)
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I believe the question and the statements from ESB that were reported in the media this week are referring to the National Smart Metering Programme and the availability of time of use tariffs as part of this programme. The National Smart Metering Programme, which includes both electricity and gas meters, is managed by the Commission for Energy Regulation (CER). The EU’s Third Energy Package sets out the need to roll out smart meters based on economic assessment and provides that in the case of electricity, “where roll-out of smart meters is assessed positively, at least 80% of consumers shall be equipped with intelligent metering systems by 2020.” In the case of gas, there is no specific target but any roll out is subject to economic assessment.

In Ireland, the key determinant of the scale, scope and timing of the roll-out of smart meters is a cost benefit analysis that is currently being developed by the CER. The results of this CBA are expected in the first half of 2017.

In previous statements, I have indicated that the roll-out of smart meters will commence in late 2018 at the earliest. The ‘go live’ date of smart services will follow once a significant number of smart meters have been rolled out.

The CER commenced a re-planning process of the NSMP in July 2016 with ESB Networks, Gas Networks Ireland and other relevant stakeholders in order to bring more clarity and certainty regarding the timelines for implementation of the programme. This re-planning process, which will conclude later this year, may lead to the timelines being extended.

Smart meters will make time of use tariffs, which offer a different price for electricity at different times of the day, available to customers. This is similar to the current day/night meters but with the potential for more than two charging periods in each day allowing people to manage their electricity cost by changing when they use electricity.

Following a public consultation, the CER has determined that energy suppliers will be required to offer time of use tariffs to customers within 12 months of receiving a smart meter and smart services going live. It will be the customers’ choice whether to opt-in to use the time of use tariffs or remain on their existing tariff.

Over time, as consumers become informed regarding the potential savings that they can make, time of use tariffs are likely to become the norm. The CER intends to monitor developments in the market with a view to phasing out flat-rate tariffs in the future. However, no date has been decided for such a phase-out.

The CER plans to launch a comprehensive public awareness campaign in the run up to smart meter roll out and educating the public about the benefits of time of use tariffs will form a substantial part of that campaign.