Ryan says electricity prices will drop

THE MINISTER for Energy Eamon Ryan says he expects consumers will benefit from a decrease in electricity prices of at least 10 per cent this year.

Mr Ryan said he had asked the Commission for Energy Regulation for an immediate review of pricing and an analysis of options for bringing down electricity and gas prices for householders and businesses.

“I am tasking the energy regulator to undertake an immediate review of options to bring forward a reduction in electricity prices. Based on current trends I expect a double-digit percentage decrease in electricity and gas prices this year,” he said.

“The price of gas is the single largest determinant of electricity prices in Ireland. Ireland is 90 per cent dependent on imported fossil fuels with a limited indigenous supply of our own. The single best action we can take for electricity prices in both the short and medium term is to develop Irish supplies of renewable energy.”

The Minister said this would also preserve and create thousands of jobs in this sector. “As Minister for Energy, I must ensure that we have the correct energy policy both in the short and long term. “The Government has to maintain a secure and sustainable energy supply at competitive prices,” he said.

Mr Ryan said greater competition in the electricity sector would also reduce prices. He was critical of Fine Gael energy policy, which he claimed was “short term” and would “bring us higher prices in the future”.

Fine Gael’s energy spokesman Simon Coveney said: “I welcome the Minister backing down and finally agreeing with Fine Gael that prices are way too high and that a huge drop is necessary.”

However, Mr Coveney said more action was needed than a review of pricing by the regulator.

“This measure alone is insufficient to deal with the problem of sky high electricity prices.”