Regulation and energy prices

Sir, – The Commission for Energy Regulation (CER) welcomes the recent focus on energy prices and competition ("Electricity bills should reflect falling gas price", January 27th; "Those most at risk of energy poverty least likely to shop around", February 2nd).

The CER has a strong consumer protection mandate and has ensured a supplier switching process for customers which is fast, free and simple.

Irish switching rates are high by international standards, with over 15 per cent of customers switching electricity supplier in 2014 alone. Strong competition has enabled energy prices to be deregulated. In addition to price reductions, competition also delivers choice and innovation. Suppliers now offer alternative metering, billing or payment options, which help customers manage costs, as well as energy efficiency options which reduce consumption and lower bills.

Noticeably lower international gas costs in recent times, combined with competition among suppliers, has fed through to announcements of reduced energy prices by four suppliers since November. If the gas cost remains low for a sustained period, we expect further price reductions in the coming months.

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In the interim, we encourage all energy customers to “shop around” among suppliers to see if a better tariff is available, including approaching their current supplier. Price comparison websites, such as bonkers.ie and uswitch.ie, are useful for customers in this regard.

Latest independent Eurostat data for the first half of 2014 show that average prices for typical Irish residential electricity and gas customers are at – or in some cases below – the euro zone average.

The CER commits to continue to monitor energy markets and, should it feel that customers are not benefitting from price deregulation, will use its regulatory powers to take action and improve matters. – Yours, etc,

LAURA BRIEN,

Director, Energy Markets,

Commission for Energy

Regulation,

The Exchange,

Belgard Square North,

Tallaght, Dublin 24.