Carol Nolan calls for answers from energy firms over price cuts
Carol Nolan challenged energy companies after one operator announced a 7.1% reduction in electricity costs. She said the cut - which equates to 183 on average per customer - shows other suppliers should explain why they are not passing on savings.
Pinergy price cut
The independent energy operator Pinergy announced a 7.1% reduction in electricity costs, which Carol Nolan described as very welcome and said equates to 183 on average per customer. Nolan argued the move exposes pricing practices across the market and creates a benchmark for other suppliers.
Call for accountability from other suppliers
Nolan asked the minister to require other energy companies that do not give customers reductions to come in and explain their rationale. She warned companies must justify their decisions to ordinary households, farming families and businesses and said energy firms "have nowhere to hide".
Local business concerns
She cited the recent closure of a family business, Offaly Mill and Foods, as a worrying example of the consequences for local firms. Nolan said government schemes are being put in place, but that energy companies also have a responsibility to help prevent further business failures.
Market dynamics and oversight
The minister responded that energy companies do have a part to play, welcomed the Pinergy reduction and noted the interplay between wholesale and retail prices and hedging forward. Both Nolan and the minister said it would be unacceptable for firms to record large profits and refuse to reduce retail prices if wholesale prices fall - and signalled the minister would bring companies in for discussion if necessary.
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As you are aware, earlier this week it was reported that independent energy operator Pinergy is to offer customers a very welcome 7.1% reduction in electricity costs. This will equate to 183 on average per customer. But I'm just wondering, this has shown and clearly shown us that energy companies have nowhere to hide, the other energy companies that is. So I'm asking here today, if you will direct Minister Eamon Ryan, in the event that the other energy companies don't give customers reductions, to come in here and explain the rationale for fleecing customers such as ordinary households, farming families and businesses. And I do want to say that this has to happen. I saw only two weeks ago the closure, and I was very saddened to see the closure of a great business, a family business in Borough County, Offaly Mill and Foods. We don't want that happening. I do recognise that you are putting a scheme in place, but that is government. But the energy companies also have a part to play in this. Thanks Deputy, I think you are right. The energy companies do have a part to play in this. It is welcome that Pinergy has reduced its prices. It is the case that it was one of the more expensive ones in the market in the first instance. And there is of course an interplay between wholesale prices and retail prices and hedging forward. And I do understand, as I know we all do, how the energy market works, but I don't think it would be acceptable if we saw energy companies recording massive profits this year and saying that for some reason they can't reduce their retail prices. I don't buy this argument that prices went up within months, but they can't come down for years. I don't buy that. And there will be a point in time, as we see wholesale prices develop, if they continue to fall, that Minister Ryan and I will be bringing the energy companies in to have a conversation about this. Thank you.
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