Eamon Ryan asks watchdog to probe electricity market for 'failures'

Environment Minister Eamon Ryan said: “In addition to my interactions, my officials meet with suppliers on a regular basis and a key message to them is the critical importance of prices being reduced as soon as possible.”

The energy watchdog has been asked to investigate whether there were any “failures” in the electricity market that impacted vulnerable customers.

Environment Minister Eamon Ryan has confirmed that he has written to the Commission for Regulation of Utilities (CRU) asking it to conduct a probe of the market and current pricing strategies. In response to a parliamentary question by Sinn Féin’s Darren O’Rourke, Mr Ryan said he had written to the regulator last month.

“I have recently written to the regulator, requesting that they investigate the pricing strategies in place, taking account of the hedging strategies of the electricity market participants,” Mr Ryan said.

“As part of this investigation, I have asked CRU to ascertain if there have been any market failures, particularly where vulnerable customers are concerned.”

The investigation comes amid concerns within Government that the impact of high energy prices will be felt again by consumers this winter as colder weather sets in.

Mr Ryan previously said he that accepted that it was going to be a “difficult winter” with high gas prices due to the war in Ukraine. He said he had been meeting with energy companies “pretty much every week”.

While he believes that prices will begin to fall in the autumn, he said they would not return to levels before the war began in February 2022.

“My clear message to energy suppliers is that prices for customers should be reduced at the earliest opportunity,” Mr Ryan said, responding to Mr O’Rourke.

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“In addition to my interactions, my officials meet with suppliers on a regular basis and a key message to them is the critical importance of prices being reduced as soon as possible.”

Overall wholesale electricity prices fell by 35.6% last month compared to June 2022, with experts saying that the warmer weather had reduced energy demand.

The Government has indicated that it will introduce energy supports in the upcoming budget, however Finance Minister Michael McGrath said the final “mix” of measures have not been decided. At the weekend, Mr McGrath called for the overall electricity market to pass on the wholesale price reductions to customers.

The Environment Minister has said that utility prices are particularly challenging in Ireland, with electricity and gas prices impacted by low levels of interconnection compared to mainland Europe, as well as Ireland’s geographical location. The CRU was approached for comment.