Ivana Bacik (Dublin Bay South, Labour)
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36. To ask the Minister for Communications, Climate Action and Environment the meetings he has had to date in 2023 with domestic energy suppliers in the electricity and gas markets; the names of any companies he met with and the date they met; if he has written to them or raised directly with them the failure to lower prices for domestic customers following the fall in wholesale gas prices; and if he will make a statement on the matter. [19674/23]

Eamon Ryan (Dublin Bay South, Green Party)
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High energy prices are a very serious concern to Government which is why a range of measures have been implemented, most recently the €1.2 billion package, announced in February, which extended the VAT reduction on electricity and gas until the end of October. This is in addition to the measures announced in Budget 2023 which introduced €2.5 billion of once of cost of living supports to protect households from high energy costs. This included three €200 (VAT inclusive) Electricity Costs Emergency Benefit Payments, bringing the total support given under the the two Electricity Benefit Schemes to over 2.1 million domestic electricity accounts to €1.5 billion in 2022. This was alongside the €400 lump sum payment to Fuel Allowance recipients, bringing the total payment for the 2022/3 winter to 1,324.

Wholesale energy prices reached peak levels in August of last year, when wholesale gas prices were 706% higher than January 2021, while wholesale electricity prices increased by 463%. Due to high gas storage levels, warmer than normal winter conditions and efforts to reduce natural gas demand across Europe, wholesale gas prices have fallen dramatically and are currently well below the peak values of last year. However, wholesale gas prices are still trading at twice their pre-pandemic levels.

Based upon an estimated annual bill retail gas and electricity prices , were 138% higher for gas and 98% for electricity in January 2023 vs January 2021. The difference in the level and speed of fluctuation in the wholesale market vs. that of retail prices demonstrates the importance of supplier hedging strategies and the extent to which these strategies shield consumers against the full extent of this utterly unprecedented international energy market volatility. Retail prices are likely to remain at current levels for some time. This will vary from supplier to supplier, based on their current hedging and retail price positions.

As Minister I meet with a range of stakeholders on a number of important topics including energy prices. This includes energy suppliers. In addition, to my interactions, my officials meet with suppliers on a regular basis and a key message to them is the critical importance of prices being reduced as soon as possible.

However, the retail electricity and gas markets are commercial and price setting is a matter for individual suppliers. Responsibility for the regulation of the retail gas and electricity markets was assigned to the Commission for the Regulation of Utilities (CRU) under the 1999 Electricity Regulation Act and subsequent legislation. CRU is accountable to the Oireachtas and not to me as Minister. CRU has a dedicated email address for Oireachtas members to contact them at: oireachtas@cru.ie.

The most significant factor affecting retail electricity and gas prices in Ireland is the wholesale price of gas. While wholesale prices have reduced from their peak in August 2022 they are still trading and twice their historic levels. Due to supplier hedging strategies it may take a more sustained period of reduced wholesale prices before retail prices can reduce.

Ivana Bacik (Dublin Bay South, Labour)
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37. To ask the Minister for Communications, Climate Action and Environment if his Department tracks the wholesale price of gas; if he is provided with regular briefings on the costs being paid by Irish energy supply companies for gas; if he will provide copies of any briefings, memos or notes he has been given to date in 2023 on energy prices in Ireland; and if he will make a statement on the matter. [19675/23]

Eamon Ryan (Dublin Bay South, Green Party)
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High energy prices are a significant concern to Government which is why a suite of measures has been introduced, most recently the new €1.2 billion package, announced in February, which extended the VAT reduction on electricity and gas until the end of October. This is in addition to the measures announced in Budget 2023 which introduced €2.5 billion of once off cost of living supports to protect households from high energy costs. This included three €200 (VAT inclusive) Electricity Costs Emergency Benefit Payments as well as a €400 lump sum payment to Fuel Allowance recipients.

The most significant factor affecting retail electricity and gas prices in Ireland is the wholesale price of gas. While wholesale prices have reduced from their peak in August 2022 they are still trading at twice their historic levels. My Department actively monitors the wholesale price of gas and electricity. The retail electricity and gas markets are commercial and price setting is a matter for individual suppliers.

Ivana Bacik (Dublin Bay South, Labour)
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38. To ask the Minister for Communications, Climate Action and Environment the further measures he intends to introduce for consumers using the revenue from energy windfall taxes; the estimated revenue he expects to be available in 2023; if the revenue will accrue to his Department or the central fund; and if he will make a statement on the matter. [19676/23]

Eamon Ryan (Dublin Bay South, Green Party)
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Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices came into force in October 2022. This Regulation seeks to address windfall gains in the energy sector through a temporary solidarity contribution based on taxable profits in the fossil fuel production and refining sectors and a cap on market revenues of specific generation technologies in the electricity sector. A General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023, which will implement the temporary solidarity contribution and the cap on market revenues, was approved by Government and published on 21 March.

It is estimated that the two measures will result in proceeds of between €280 million and €600 million being collected. The majority of these proceeds are expected to be collected in 2023. It should be noted that the level of proceeds collected from these measures will be dependent on many variables, such as the cost of wholesale gas.

The proceeds from the temporary solidarity contribution will be collected by the Revenue Commissioners and remitted to the Exchequer. The proceeds from the cap on market revenues will be collected by the Commission for Regulation of Utilities. It will be a matter for Government, as part of the annual Budget process and in line with the Council Regulation, to determine how the proceeds collected from the temporary solidarity contribution and cap on market revenues will be distributed.

Ivana Bacik (Dublin Bay South, Labour)
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39. To ask the Minister for Communications, Climate Action and Environment if he is satisfied with the level of regulation and oversight of the Irish energy market covering domestic and commercial supply of electricity and gas; if he is satisfied with the current powers available to the Commission for Regulation of Utilities; if he intends to provide stronger powers to the CRU to regulate energy prices; and if he will make a statement on the matter. [19677/23]

Eamon Ryan (Dublin Bay South, Green Party)
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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 2011. The Commission for Regulation of Utilities (CRU) is an independent regulator, accountable to a committee of the Oireachtas and not to me as Minister.