Written answers
Wednesday, 18 September 2024
Department of Communications, Climate Action and Environment
Energy Prices
Robert Troy (Longford-Westmeath, Fianna Fail)
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90. To ask the Minister for Communications, Climate Action and Environment if he will consider the removal of the standing charge on electricity supply bills for pensioners; and his views on whether this is an unfair charge on low-income pensioners. [36568/24]
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 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.
Network tariffs which are a significant component of a customer's standing charge are used to finance the maintenance and expansion of Ireland's electricity grid which are necessary tasks on ensuring our journey to a Net Zero. This will have long run benefits for electricity users throughout Ireland.
The CRU is an independent statutory regulator and is accountable for the performance of its functions to the Joint Oireachtas Committee on Environment and Climate Action. The CRU provides a dedicated email address for Oireachtas members, which enables them raise questions on energy regulatory matters, such as the matter raised in this question, to CRU at oireachtas@cru.ie for timely direct reply.
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