Dáil Éireann Debate, Monday - 11 September 2023
81. Deputy John Lahart asked the Minister for the Environment, Climate and Communications the basis for the standing charge for a person that owns the physical mater attached to a residential property on which energy is metered and subsequently charged; and if he will make a statement on the matter. [37423/23]
View answerThe electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein they are commercial, liberalised, and competitive. Operating within this 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.
Price setting by suppliers, including standing charges, is therefore a commercial and operational matter for the companies concerned. Each supplier has its own different approach to pricing decisions over time, in accordance with factors such as their overall strategic direction and developments in their cost base. Even during periods of low usage, there are fixed costs associated with the supply of gas or electricity, including network tariffs, infrastructure and staffing. These fixed costs are reflected in customer's bills through standing charges.
