Allister protests energy prices in Brussels and slates Single Electricity Market
24 September 2008
During a debate in the European Parliament on the recent hikes in energy prices Traditional Unionist MEP Jim Allister drew specific attention to the failure of the Single Electricity Market on the island of Ireland to live up to its promise of "efficiency savings" and resulting reduction in prices to consumers. Referring to the fact that such was what was promised by then DETI Minister, Nigel Dodds MP, when he launched the SEM just last November, Mr Allister suggested Northern Ireland consumers had been "sold a pup", as since January electricity prices had risen by 52% in Northern Ireland, compared to 29% in GB
The Ulster Euro MP went on to call on the Commission to investigate why the SEM had not lived up to expectations and suggested failure to adequately deal with the dominant position in the market of ESB lay at the heart of the failure.
In the course of his remarks Mr Allister said:-
"Among the projects the EU has encouraged is the Single Electricity Market on the island of Ireland. Can the Commission explain why for consumers in Northern Ireland it is not working and instead of stability and savings in price we have seen a mammoth 52% hike in prices since January 2008 and an ever-widening gap with prices prevailing in the rest of the UK, where in the same period prices have risen by 29% - big in itself, but a lot less than 52%.
Will the Commission investigate the failure of this scheme to deliver the promise of Minister Dodds, when he launched it, of ‘efficiency savings and enhanced competition to help minimise the wholesale cost of electricity, with the vast bulk of the benefits going to the consumer”. All rings rather hollow now!
In particular, will the Commission investigate the contribution to the non-delivery of the SEM of the failure adequately to address the dominance of the ESB in the southern market and the resulting lack of real competition, which is imperative to the success of any single electricity market?"
