Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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538. To ask the Minister for Communications, Climate Action and Environment his views on the fact that some energy supply companies have increased their prices twice in 2018; his plans to take action to curb their price increases; and if he will make a statement on the matter. [47918/18]

Richard Bruton (Dublin Bay North, Fine Gael)
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Announcements regarding electricity price increases in 2018 reflect that, since the final quarter of 2016, average international natural gas prices have increased. They have, more or less, continued to rise through 2017 and 2018, with UK National Balancing Point day ahead gas prices in September being 57% higher in Euro terms than 12 months earlier. Consistent with the upward international gas price trend, average Irish wholesale electricity prices have also increased. Consistent with the usual time-lag, the effect of this protracted rise in the wholesale electricity price since end 2016 has been observed in the retail market, with all significant Irish electricity suppliers announcing household customer price increases during 2018.

Consistent with European energy policy, the electricity and gas markets in Ireland are commercial, liberalised, and competitive. 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. Competition exerts downward pressure on suppliers’ prices. The regulation of retail market prices for electricity in Ireland ended in 2011 and for gas prices in 2014. The main thrust of Government policy on energy costs focused on the competitive market and supports for energy efficiency. Government policy has supported competition to drive down prices, and data from approved price comparison sites (www.bonkers.ie and www.switcher.ie) shows that consumers can make significant savings by switching energy suppliers.

Responsibility for the regulation of the gas or electricity markets is a matter for the Commission for Regulation of Utilities (CRU). It is an independent statutory body, and solely accountable to a committee of the Oireachtas for the performance of its functions. Section 10A of the Electricity Regulation Act 1999, as amended, sets out the procedure under which the Minister may give “general policy directions” to the CRU. The legislation sets out details on the tasks and inter-alia restrictions, timelines and consultation requirements with the independent regulator and Oireachtas.  Energy markets in Ireland operate within a European regulatory regime in which Member States must guarantee the independence of National Regulatory Authorities, which are expressly forbidden from taking direct instructions from government, or any public body. The regime also restricts policy directions in the form of general policy guidelines in certain areas that are prescribed regulatory duties and powers in the EU Third Energy Package.  A policy direction in this matter is therefore not being considered.