Dáil Éireann Debate, Thursday - 27 June 2024
133. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the way in which the cost of producing electricity here compares with other countries throughout Europe, with particular reference to maintaining competitiveness throughout industry; and if he will make a statement on the matter. [27813/24]
Amharc ar fhreagraElectricity prices in Ireland are influenced by a range of factors, including wholesale prices, geographic and demographic factors such as Ireland’s isolated island location, low levels of interconnection, widely dispersed low density population, and reliance on fossil fuels for its generation mix.
The Sustainable Energy Authority of Ireland (SEAI) produces biannual reports on the cost of energy in Ireland – Electricity and Gas Prices in Ireland, most recently in December 2023 for the previous six months. The first of these for 2024 is forthcoming. In this most recent report, the SEAI finds that when accounting for Government supports during the energy price and cost of living crises throughout 2023, inclusive of three €150 electricity credits, totalling €450 (inc. VAT) delivered to each domestic electricity account, Ireland placed at 9th most expensive country in the EU for domestic electricity prices.
In a recent report analysing household electricity prices across Europe, the CRU found that the Electricity Credit reduced unit prices in Ireland to such a degree that for 92% of customers, prices paid for domestic electricity were at their lowest since 2007.
Similar trends can be seen in business electricity prices in the same SEAI report which shows that Irish prices are falling at a quicker pace than the EU average over 2023. There has been an 18% reduction in the case of Ireland versus 9% in the EU.
It is important that the Deputy note that 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 overall EU 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.
Given that prices are no longer regulated, they are set by all suppliers as entirely commercial and operational matters by them. The CRU is held accountable by the Joint Oireachtas Committee on Environment and Climate Action and not the Minister. The Deputy may also wish to note that CRU provides a dedicated email address for Oireachtas members, which enables them raise questions on energy regulatory matters, at oireachtas@cru.ie for timely direct reply.
