Emer Higgins (Dublin Mid West, Fine Gael)
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188. To ask the Minister for Communications, Climate Action and Environment the reason the average monthly electricity wholesale price in Ireland is greater than the European average; the steps being taken to address rising energy costs; and if he will make a statement on the matter. [54178/21]

Eamon Ryan (Dublin Bay South, Green Party)
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Responsibility for the regulation of the electricity market is a matter for the Commission for Regulation of Utilities (CRU), which is an independent regulator. The CRU was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation. It is a function of the CRU to regulate the electricity market. The Minister has no statutory function in the matter of the regulation of electricity prices.

The Electricity Regulation Act provides that the CRU shall account for the performance of its functions to a Joint Committee of the Oireachtas. Energy commodity prices have reached unprecedented high levels across Europe. Wholesale electricity prices have also increased driven mainly by the increase in gas prices. The main driver of the high energy prices in Europe is the global gas price surge, due to significant increase in demand (which in turn is driven by rapid economic recovery and certain weather patterns) combined with tight supply and lower than normal gas storage. These factors have fed through to increases in gas and electricity prices in Ireland.

In response to increased prices, the European Commission has published a ‘toolbox’ of measures that the EU and its Member States can use to address the immediate impact of current prices increases, and further strengthen resilience against future shocks. The Government increased targeted welfare supports in Budget 2022 including increases in the Fuel Allowance, with a substantial proportion of this funded through the carbon tax.