Written answers

Wednesday, 18 January 2023

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Réada CroninRéada Cronin (Kildare North, Sinn Fein)
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73. To ask the Minister for Communications, Climate Action and Environment the reason the daily standing charge on electricity bills from Electric Ireland has increased to 0.9563 cent per day, which is reported to be treble the recent cost, meaning there is a charge of €56.42 before one unit of electricity is used; and if he will make a statement on the matter. [63431/22]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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78. To ask the Minister for Communications, Climate Action and Environment the contact that he has had with the Commission for Regulation of Utilities in the context of rising electricity prices; if he has raised the issue of the cross subsidisation of the unit price of electricity on itemised bills by higher rises in the standing charges; his views on whether greater legal clarity is required by electricity providers with regard to the purpose for which the standing charge is applied; if his Department has tracked the rise in standing charges across all service providers; if he is satisfied that the level of increase is justified; his views on whether the law in this regard needs to be strengthened; and if he will make a statement on the matter. [63699/22]

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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92. To ask the Minister for Communications, Climate Action and Environment if he will provide details of any engagement that he has had with the Commission for Regulation of Utilities in relation to setting an upper limit on energy standing charges; if he will provide details of his engagement with the Commission with regard to carrying out a review of standing charges, particularly in view of recent price increases; and if he will make a statement on the matter. [1180/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 73, 78 and 92 together.

The Commission for Regulation of Utilities (CRU) was assigned consumer protection functions under the 1999 Electricity Regulation Act and subsequent legislation and has statutory responsibility for the compliance by energy suppliers with their consumer protection obligations.

The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial and liberalised. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets, including the matters raised by the Deputy, is solely a matter for the CRU.

In line with long standing policy on deregulating price setting, CRU ended its regulation of retail prices in the electricity market in 2011, and in the gas market in 2014. Price setting by electricity suppliers, including standing charges is a commercial and operational matter for the companies concerned.

Each such company has its own different approach to pricing decisions over time, in accordance with factors such as their overall company strategic direction and developments in their cost base.

Within a competitive environment, providers also have costs such as staffing, Tax, infrastructure, and cost of Network Tariffs which in turn affects end users’ bills.

Officials from my Department meet on an ongoing basis with a range of stakeholders including the Commission for Regulation of Utilities (CRU)

Government throughout 2022 introduced a €2.4 billion package of supports and as part of Budget 2023 introduced a bundle of once off measures worth €2.5 billion. This includes a new Electricity Cost Emergency Benefit Scheme, lump sum payments to fuel Allowance recipients, and persons on the working family payment.

CRU provides a dedicated email address for Oireachtas members, which enables them to raise questions on general energy regulatory matters to CRU at oireachtas@cru.ie for timely direct reply.

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