2026-04-16

86. Deputy Jennifer Whitmore asked the Minister for Climate, Energy and the Environment for an update on the CRU price-gouging investigation with regard to energy prices; and if he will make a statement on the matter. [27417/26]

Could I have an update on the CRU price-gouging investigation that the Minister called for with regard to energy and electricity prices?

I thank the Deputy for the question. I understand she wants clarification specifically on the review of the pass-through from wholesale electricity prices to retail electricity prices that the Minister, Deputy O'Brien, requested the CRU to undertake. As the Deputy knows, retail electricity prices are influenced by several factors, including wholesale energy prices, system operation costs and supplier hedging. The latest data from Eurostat shows that, in nominal terms, Ireland ranked fifth for household electricity prices among European countries in the first half of 2025. When adjustments are made for purchasing power parity, Ireland is about mid-table in terms of affordability, with its electricity prices being the 12th highest among European countries. In a report from last October, the International Energy Agency, IEA, observed that Irish retail prices had not adjusted at a pace comparable with that of the decline in wholesale prices, with the energy component of retail prices remaining up to three times that of wholesale prices. While the CRU has found no evidence of market failure or windfall profits in the retail sector in its market monitoring role, the IEA findings underline the importance of progressing the programme for Government commitment to commission an independent review into the speed and the level of pass-through from wholesale prices to retail prices. The Minister wrote to the CRU to request that it commence the independent review, building on the work of the previous CRU investigations, reviewing the competitiveness of the Irish retail energy markets, examining supplier costs, including hedging and pricing practices, and providing price analyses to compare with other EU member states. This will also assess whether measures are warranted to enhance market responsiveness to wholesale price changes and make recommendations to ensure the benefits of lower wholesale prices are felt by the consumer.

We are all aware that hundreds of thousands of households are finding it difficult to pay their energy bills and what we saw last week is a direct result of that. An estimated 315,000 people are in arrears on their electricity bills. Many of them have been in arrears for more than 19 months. These are people who are still not able to catch up with the incredible price shocks we experienced after the Ukraine invasion. One of the roles of the CRU is to protect customers. The Minister has asked the CRU to look at the pass through of wholesale prices. Right now, wholesale prices are 72% cheaper than they were at the peak in August 2022. They are 72% cheaper, but our retail prices are not 72% lower. In fact, they are higher. We have not seen any reduction, and I do not think hedging can be used as an excuse. Will the Minister of State provide an update on what the CRU has done and when it will it be publishing its report?

The Minister and the officials in the Department have been engaging with the CRU to emphasise the importance of this. We all know the impacts that people are feeling. We know that the cost-of-living crisis is a result of significant increases in inflation in recent times. Of course, we all desire to try to resolve this. As the Deputy knows, the Minister commissioned a report on the national energy affordability task force. The first phase of that work came through prior to the budget last year. That is ongoing work to try, in so far as the Government can, to intervene to get that pass through on prices and to ensure that electricity is affordable to our citizens. We recognise where we are at in the international table. With the departmental officials working with the CRU, it is very much our desire to get to a point where we can get parity in that situation.

It is clear that the Minister of State has had no update from the CRU on this. He provided no information or timeline on its examination of price gouging. It is incredible that six months after the IEA highlighted that wholesale electricity price reductions were not being passed on to Irish consumers at the same rate as other consumers across Europe and that five months after the Minister wrote to the CRU asking it to conduct an investigation into price gouging, the CRU cannot even give the Minister of State an update as to what it has done or when it will conclude that investigation. What is the CRU doing? It is meant to be protecting consumers. Irish consumers are facing another energy shock when it comes to electricity prices. They are still trying to get over the incredible electricity prices that resulted from the Ukraine war. The CRU is asleep at the wheel here. I ask that the Minister of State meet with the CRU and direct it to immediately conduct this investigation into price gouging. We cannot wait any longer.

The Deputy is aware that the CRU is independent entity. It is answerable to the Oireachtas through the Oireachtas committee, so there is an opportunity there for the Deputy. In fairness to her, Deputy Whitmore is a very vocal and hard-working member of that committee. The Minister has written to the CRU, and the officials are in contact. We want to bring this to a conclusion, but we must also recognise the independence of the CRU. As already stated, the commission is answerable to the Oireachtas. Price setting by energy companies is a commercial and operational matter for the companies concerned and not something that the Government or the Department could or would be able to interfere with or influence. My suggestion, as I said at the outset, would be to engage with the CRU through the committee.