Eamon Ryan ‘frustrated’ at energy companies’ refusal to cut prices

Energy companies are facing renewed pressure from the Government to bring bills down, with Green Party leader Eamon Ryan saying prices need to fall “quicker” amid growing frustrations.

Mr Ryan was speaking after Minister for Finance Michael McGrath said there needed to be a “better explanation” and “more detail” from energy providers on the prices consumers are being charged.

Despite a toughening in the rhetoric from Coalition Ministers, the Government is likely to face increased pressure itself from Sinn Féin, which will put down a Dáil motion on Wednesday calling for greater powers for the Commision for Regulation of Utilities (CRU), and argue that Government efforts to address windfall gains in the energy sector are “wholly inadequate”.

In a statement, a spokeswoman for Mr Ryan told The Irish Times that he had been meeting energy companies on a continuing basis and, while the market is competitive, “he has relayed his frustration, particularly over recent months, with continued high retail prices, considering that wholesale gas prices are significantly lower and falling”.

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The spokeswoman said Mr Ryan understands that companies cannot react instantly to market changes due to their hedging arrangements. “However, he would like to see retail costs falling quicker for consumers.”

Earlier, Mr McGrath told RTÉ Radio that “any relief here would be welcome. I do think it is time that the reductions at wholesale level are passed on to consumers.”

Data published on Tuesday showed the average cost of groceries fell for the first time in two years – but the price decline was unlikely to make a meaningful difference for consumers. According to retail analyst Kantar, grocery price inflation was 16.6 per cent in April compared to 16.8 per cent in March.

Last week, CSO figures showed the annual rate of inflation slowed to 6.3 per cent in April compared to 7 per cent in March. European inflation rose slightly, according to figures published on Tuesday, but core inflation – stripping out food and energy prices – fell slightly from 5.7 per cent to 5.6 per cent.

Minister for Public Expenditure Paschal Donohoe said on Tuesday that signs inflation was falling are “welcome” but that it would still have an effect on people’s standard of living this year. “For many people the cost of buying their groceries, the cost of filling up a tank of diesel is still too high,” he said.