Written answers

Wednesday, 1 March 2017

Department of Communications, Energy and Natural Resources

Energy Prices

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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293. To ask the Minister for Communications, Energy and Natural Resources the progress being made to standardise electricity standing charges and unit costs and eliminating extra costs of electricity for rural consumers. [10597/17]

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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296. To ask the Minister for Communications, Energy and Natural Resources the steps envisaged in equalising electricity prices throughout the country and providing equal priced electricity to rural and urban consumers, in view of the reduction in cost of fuel for generating electricity over the past number of years outlined on RTE recently. [10596/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 293 and 296 together.

I have no statutory function in the setting or review of electricity or gas prices. Responsibility for the regulation of the electricity market is a matter for the Commission for Energy Regulation (CER) which is the independent energy regulator, as provided for in the Electricity Regulation Act, 1999 and subsequent legislation. Since April 2011 prices, including the standing charge, in the electricity market have been fully deregulated and business and domestic customers can, as a result, avail of competitive offerings from a number of suppliers.

The standing charge is a combination of the fixed charges associated with providing electricity network services (e.g. meter reading and network operations/maintenance) and a share of the supply costs in servicing customers’ electricity accounts. Standing charges vary from supplier to supplier and will be presented by the supplier under one of four classes of standing charges: Urban 24hr, Urban Nightsaver, Rural 24hr, Rural Nightsaver. The question of whether a property is urban or rural is determined by its location and is decided by ESB Networks. Rural customers pay a higher standing charge as it costs more to supply electricity to properties further away from the network.

The coverage referred to by the deputy may be of a report recently published by the CER entitled  “Review of Competition in the Electricity and Gas Retail Markets: A Consumer Focused Assessment”, in line with its competition and consumer protection functions and reflecting a CER commitment in the energy policy White Paper.  This report is available on its website  as well as quarterly market monitoring reports. The Electricity Regulation Act, 1999 provides for CER’s independence  in the performance of its regulatory functions, and for its accountability for such performance to a Joint Committee of the Oireachtas. Accordingly, I have no function in the areas referred to.

Competition in the energy market results in choice for consumers and businesses in terms of products and prices and suppliers exerting downward pressure on prices.  Domestic customers can avail of discounts available, either by contacting their supplier directly or by using the accredited websites, www.bonkers.ie and www.switcher.ie, to switch to discounted tariffs.  Recent figures published by the CER indicate the difference between the most expensive standard plan and least expensive discount plan in the electricity and gas market is €321 and €178 per annum respectively.

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