Written answers
Wednesday, 14 June 2023
Department of Communications, Climate Action and Environment
Energy Prices
Patricia Ryan (Kildare South, Sinn Fein)
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51. To ask the Minister for Communications, Climate Action and Environment the measures or reliefs he could consider or put in place to prevent pensioners and others on low fixed incomes being further energy-impoverished by "standing charges" imposed on them by gas providers, even when there is no gas being used, as a €20 standing charge per month is a significant sum out of a pensioner's income; and if he will make a statement on the matter. [28787/23]
Eamon Ryan (Dublin Bay South, Green Party)
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The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. Operating within this framework, responsibility for the regulation of the electricity and gas markets is solely a matter for the Commission for Regulation of Utilities (CRU), which was assigned responsibility for the regulation of the Irish electricity and gas markets following the enactment of the Electricity Regulation Act (ERA), 1999. CRU ended its regulation of retail prices in the electricity market in 2011, and in the gas market in 2014.
Price setting by suppliers, including standing charges, is therefore a commercial and operational matter for the companies concerned. Each supplier 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. Even during periods of low usage, there are fixed costs associated with the supply of gas or electricity, including network tariffs, infrastructure and staffing. These costs are reflected in customer's bills through standing charges.
Government is committed to helping people meet high energy costs, with a particular focus on those most vulnerable. Most recently, a €470 million package was announced in February which introduced measures assisting social protection recipients between April and July, and extended the reduced VAT rate on electricity and gas bills until the end of October 2023. This followed the €2.5 billion of once-off supports announced in Budget 2023, including various targeted social protection payments and an Electricity Cost Emergency Benefit Scheme which credited €600 (inclusive of VAT) to each domestic electricity account in three payments of €200.
Government is closely monitoring the impact of these supports and long-term measures to increase home energy efficiency through the implementation of the Energy Poverty Action Plan. Further measures are being considered in the context of Budget 2024.
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