Emer Higgins (Dublin Mid West, Fine Gael)
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94. To ask the Minister for Communications, Climate Action and Environment his views on the feasibility of introducing energy price capping to provide customers with stability of price during the current cost-of-living crisis; and if he will make a statement on the matter. [45751/22]

Eamon Ryan (Dublin Bay South, Green Party)
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The unprecedented increase and volatility in international wholesale gas market prices has continued as a result of the Russian invasion of Ukraine. This in turn has led to increases in energy bills given the link between the wholesale price of gas and electricity. Government has already put a €2.4 billion package of measures in place to support people and further measures are being considered for Budget 2023. Government is acutely aware of the impact on consumers of high electricity and gas prices, and has introduced a range of measures to mitigate their impact including the Electricity Costs Emergency Benefit Scheme, with a payment of €176.22 made to almost 2.2 million domestic electricity accounts. The Scheme was part of a package of measures, which included further increases in the Fuel Allowance, seeing it increase from €735 in 2020 to €1,139 and a reduction in VAT on electricity bills from 13.5% to 9%.

Under Responses 6 and 7 of the National Energy Security Framework the Commission for Regulation of Utilities (CRU) announced enhanced consumer protection measures to be implemented by electricity and gas providers ahead of the coming winter.

Earlier this year the Government increased the grant rates significantly to make it easier and more affordable for homeowners to undertake home energy upgrades. In particular, SEAI is being supported to focus on free energy upgrades for those at greatest risk of energy poverty. Business supports are also available to support businesses to improve energy efficiency.

Responsibility for the regulation of the retail electricity and gas markets is statutorily a matter for CRU. It ceased price setting for electricity and gas in 2011 and 2014. The setting of prices is a commercial, competitive matter for individual supply companies.

Any major interference in the energy market would need to be carefully considered to avoid potentially disrupting a market that is already facing significant challenges and exposing the Exchequer, and ultimately the taxpayer, to potentially unquantifiable costs. In this regard, direct assistance to consumers, like the Domestic Electricity Payment, and targeted measures like the Fuel Allowance, are a better approach.

I am also working with colleagues across Government to understand the impact of energy prices on businesses and to support the Department of Enterprise Trade and Employment in tailoring responses.

Following an Emergency Energy Council Meeting on the 9th of September the EU Commission is proposing potential additional measures which include capping the revenues of inframarginal electricity produces. These are very important developments, and I will be working very closely with my EU counterparts over the coming weeks on these proposals.