The energy regulator is expected to be called before an Oireachtas committee about the status of its investigation into electricity companies’ failure to pass significant cuts in wholesale prices to domestic households.
Social Democrats energy spokeswoman Jennifer Whitmore has asked the committee to call in the Commission for Regulation of Utilities (CRU) after she accused the agency in the Dáil of being “asleep at the wheel”.
In December, Minister for Energy Darragh O’Brien asked the CRU to review the “pass-through” of wholesale electricity prices to retail levels, after it emerged wholesale prices were 72 per cent cheaper than they were in August 2022 when they peaked.
Asked by Whitmore for an update on the status of the review “into price gouging” by wholesalers, Minister of State Timmy Dooley could only say “the CRU is an independent entity”. He said it is answerable through the Climate, Environment and Energy committee and that was the route she should take.
READ MORE
The Social Democrats TD hit out at the agency and said five months after the Minister requested “a price gouging investigation”, the agency “can’t even give the Minister of State an update as to what it has done or when it will be finished its investigation”.
The review is looking at the competitiveness of the Irish retail energy markets, examining supplier costs, including hedging and pricing practices and providing price analyses to compare with other EU member states.
Whitmore said rather than dropping by 72 per cent, retail prices were rising.
“What is the CRU doing? It’s meant to be protecting consumers. Irish consumers are facing another energy shock when it comes to our electricity prices. They are still trying to get over the incredible electricity prices that resulted from the Ukraine war. The CRU is asleep at the wheel here.”
[ Electricity bills in Ireland among the highest in EuropeOpens in new window ]
A CRU spokesman said, however, the agency “has already begun preparatory work”, including “engaging with suppliers and continued to work through the actions of the NEAT (National Energy Affordability Taskforce) under the auspices of the Department of Climate, Energy and Environment”.
The preparatory work includes “engagement with the CCPC (Competition and Consumer Protection Commission) in their consideration of a review of the electricity and gas retail markets”.
He said: “Given the complexity and depth of the review of the retail market that this requires, there is no confirmed publication date at this point.”
But, he added: “The CRU has not seen any evidence of price gouging in the electricity and gas retail sectors in Ireland and would note that as global gas prices have increased due to the conflict in the Middle East, customers have been protected in recent weeks and we expect over the coming months.
“However, given the volatility of market gas prices due to the conflict, it is impossible to predict how the retail market will react.”
Whitmore said many of the 315,000 people in arrears on their electricity bills had been behind for more than 19 months. “These are people who are still not able to catch up with the incredible price shocks we experienced after the Ukraine invasion.”
[ ‘Shocking’: Taskforce to tackle high electricity prices has met just three timesOpens in new window ]
The CCPC confirmed it was working with the CRU “on a longer-term study to identify any obstacles currently preventing the electricity and gas markets from operating efficiently”.
Chairman of the energy Oireachtas committee Naoise Ó Muirí, said he believed the CRU should be called in to attend but committee members would decide at its next meeting on Wednesday.
