Drop in wholesale gas prices welcomed but fears expressed of energy market cartel

Taoiseach Micheál Martin said gas prices were at their lowest since June

A two-thirds drop in the wholesale cost of energy can only be good news if the saving is passed on to the consumer, the Dáil has been told.

Social Democrats co-leader Catherine Murphy told Taoiseach Micheál Martin during Wednesday's Leaders' Questions that benchmark energy futures dropped to €92 per MWh on Tuesday, down from an "astronomical" €340 per MWh in August. 

However, she said the "energy market here is increasingly resembling a cartel", with customers being denied discounts for switching their accounts, costing up to €1,000 a year.

"Electricity prices have gone up by more than 90% over the last 12 months, and  energy prices are up by 80%," Ms Murphy said.

"This means that workers and their families are paying up to an additional €2,000, on average, this year on their energy bills. 

Social Democrat Co-leader Catherine Murphy highlighted that the discounts customers get for switching energy provider were now miniscule. Picture: Damien Storan

"This month alone, Electric Ireland, Bord Gáis Energy, SSE Airtricity and Flogas, to name a few, have all hiked their prices by 50%. 

While prices have soared, the number of discounts available for customers has been slashed." 

She said the discounts customers get for switching providers are now minuscule. 

"Switching was the mechanism for ensuring competition between suppliers. Potential savings for switching have been cut from between 25% and 40% to barely 10% right across the board. 

"The result is that the energy market here is increasingly resembling a cartel, with almost no real choice for customers. To put this in context, those who switch their accounts are now missing out on savings of up to €1,000 a year."

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Taoiseach Micheál Martin said the price for gas was the lowest since June, but ruled out Ireland supporting calls for a price cap on energy along with 15 EU member states. He said "different member states have different energy mixes".

"Gas has been the determining factor in electricity prices. Some countries have up to a 70% dependence on gas for electricity while other countries' dependence is as low as 20%. 

"The make-up of the energy mix on the Iberian Peninsula, for example, is different to most of the rest of Europe. It performs strongly on renewables. Those countries have carved out a particular model and the European Commission is examining that to see could it have a wider application.

"In short, we are all coming at it from a different perspective. The Irish perspective puts security of supply first. 

Our relationship with the UK is key. 

"We do not want any unilateral decisions to impact security of supply from the UK to Ireland."