Farmers urge energy firms to pass on benefits of oil cuts
While welcoming Bord Gáis Energy’s decision to reduce prices, IFA’s inputs project team leader James McCarthy has called on all energy suppliers, Energy Minister Alex White, and the Commission for Energy Regulation (CER) to further reduce these prices.
Bord Gáis is to cut the unit rate of gas by 3.5% and the unit rate of electricity by 2.5%, reducing the average household energy bill by around €54 per year. The IFA notes wants that cut to better reflect the 50% fall in international fuel prices.
Mr McCarthy said: “Each year farmers spend €500m on diesel fuel, electricity and other energy. Minister White and the CER must deliver on their responsibility to improve competitiveness in the energy sector.
“The full cost savings enjoyed by energy companies are not being passed back. This is placing an unjustifiable cost burden on businesses and consumers.”
IFA has written to CER and Mr White seeking their intervention to help reduce energy costs in line with falling international oil and gas prices.
Mr White is due to meet the chief executives of energy companies this week to outline whether wholesale energy price reductions are being adequately reflected in household bills. He welcomed the Bord Gáis cuts.
He said: “I hope to see other energy suppliers follow suit. I will be meeting with the energy suppliers to hear what they have to say on the question of passing on wholesale price reductions.”
Fianna Fáil energy spokesman Michael Moynihan has called for a review of CER’s role and powers, arguing it is failing in its mission to safeguard the interests of energy consumers.
Mr Moynihan said: “When I and others call for savings to passed on to electricity and gas consumers, we are simply told nothing can be done. Is this acceptable?
“In my view, it raises the question of whether our energy regulation regime is any longer fit for purpose. If the regulator’s only function is to preside over price increases and then just shrug when the price of oil collapses and utilities maintain record high prices, something is radically wrong and has to change.”
Bord Gáis said it purchases gas over a year in advance on a staged basis to ensure price stability and achieve a smoothing out of market volatility for consumers.
Dave Kirwan, chief operating officer, Bord Gáis Energy said: “We are constantly reviewing our pricing to make sure we offer the best value to all our customers, and help them manage their energy bills.
“With the reduction in international wholesale energy costs, we now have the opportunity to drop our prices in both gas and electricity and we are happy to be able to do so. We will continue to monitor wholesale and other costs and should further savings occur we will seek to reflect that in our prices.”
