Ruth Coppinger (Dublin West, Solidarity)
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436. To ask the Minister for Communications, Climate Action and Environment his views on the disincentive to reducing energy consumption caused by the existence of standing charges and levies (details supplied); and if he will make a statement on the matter. [51970/17]

Ruth Coppinger (Dublin West, Solidarity)
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437. To ask the Minister for Communications, Climate Action and Environment if he will take action to reduce the regressive nature of standing charges in energy bills in view of the fact that these charges have a greater impact for those on lower incomes than higher incomes; and if he will make a statement on the matter. [51971/17]

Denis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 436 and 437 together.

Electricity and gas retail markets in Ireland are commercial, liberalised, and competitive and operate within national and European regulatory regimes. Retail electricity prices have been fully deregulated since April 2011, with price setting a commercial and operational matter for suppliers. The position of successive Governments has been that competitive energy markets result in greater choice for consumers and businesses, in terms of suppliers, products and prices.

Non -variable components in household electricity bills are a part of energy bills across Europe  and are necessary to address the fixed costs of  energy systems, including infrastructure, maintenance  and repair,  and systems services that ensure the reliability of these systems.  

The Public Service Obligation (PSO) Levy is a charge on all electricity customers without exception, and is determined by the Commission for Regulation of Utilities (CRU). The levy consists of a set of support schemes designed to facilitate national electricity policy objectives for renewables, indigenous fuels and security of supply. 

VAT and other taxation matters are the responsibility of the Minister for Finance.

In general terms, suppliers describe the standing charge as a combination of fixed charges associated with the upkeep of the network necessary to bring supply to the home, together with other network services such as meter reading, issuing and processing customer bills, and other related supplier costs. These costs have to be met irrespective of the amount of electricity used and regardless of whether the property is occupied or not.  

Responsibility for the regulation of the electricity and gas markets is solely a matter for the independent regulator, the Commission for Regulation of Utilities (CRU), which was assigned responsibility for the regulation of the Irish electricity market following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation. As part of its statutory functions, the CRU carries out regular market monitoring focused on costs and prices and has the responsibility to ensure that energy customers continue to benefit from competition.  In relation to market monitoring, the CRU published two reports this year; in February, “A Review of Competition in the Electricity and Gas Retail Markets: A Consumer Focused Assessment”, and, in October, “An Energy Supply Costs Information Paper”, which explain in detail the costs suppliers include in bills.  CRU indicates that it intends to continue to closely monitor trends in prices and margins.

The CRU also determines network companies’ charges every five years on the basis of regulatory scrutiny of network costs.

CRU is an independent statutory body and solely accountable to a committee of the Oireachtas for the performance of its functions, including in relation to market monitoring.