Oireachtas Joint and Select Committees

Wednesday, 19 October 2022

Joint Oireachtas Committee on European Union Affairs

EU-level Policy Response to Current Energy Security Issues: Discussion

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I thank our contributors. I missed some of the presentations at the beginning. From what I have heard, I am not sure if that is good or bad. I have heard enough in the meantime to have loads of questions and if they have already been asked, please ignore them. I will address the first question to Mr. O'Donoghue. At the meeting on 25 October the energy ministers will look at a number of measures. These include a new pricing benchmark to limit prices, joint procurement of energy reserves and the EU supporting energy supplies in Ukraine and Moldova. I would like Mr. O'Donoghue to elaborate on each of those points, especially on some kind of new pricing benchmark to limit prices. In regard to joint procurement of energy reserves, are we bidding against one another as it is. What is the current situation? There is also talk of a one-off, windfall tax which Mr. O'Donoghue might be able to elaborate on. My other question is around the European Green Deal. He spoke about increased ambition on heat pumps and hydrogen usage. Perhaps that could be elaborated on and the practical steps that could be taken might be outlined.

This is for both of the witnesses. In the area of farming energy; bio-digesters, small turbines and solar panels, what is the Green Deal saying and doing to promote these? Dr. Deane said that the challenge for Ireland's energy security is the present not the future. That is the kind of thing that strikes fear into the hearts of everyone. Dr. Deane is talking about this winter and the next. We have already looked at some immediate short-term measures; perhaps the witnesses would like to elaborate on any of those.

I want to go back to the issue of saving energy. Dr. Deane mentioned earlier that it was unpopular but I actually think that it is not as unpopular as he may think. From my conversations with people I find that they are interested in how they can save energy. The crucial aspect is how that information is presented. If it is presented by Ministers as a means of getting the Government off the hook for policy failure or inaction or whatever word one wants to use, then people are not interested. It needs to be presented as a solution for families and businesses. I was in with my hairdresser on Monday and he was speaking about the fact that he is now checking on the immersion. He is asking how many people are booked in. He is checking the amount of energy he is using. He is going around switching off the lights like everyone else, but he is specifically looking at his business, as many households are at the moment, to see how they can save energy because people cannot afford their energy bills. How the message is delivered is crucial. I think we delivered it in the most inappropriate way to begin with. It is really hard to go back from that but that is the responsibility of all of us.

My second question refers to the Commission for the Regulation of Utilities. Deputy Haughey already asked whether this body needs more power and the answer was "No" but what about the issue of standing charges? The CRU cannot deal with this issue. It is an absolute rip-off. We need to look at legislation so that the CRU certainly has a role to play there. I would like to get the witnesses' comments on this.

Reference was also made to there being no gas storage facility in Ireland and that if there was an interruption in supply from the UK that it could be catastrophic. We know that anything can happen. It is not likely, but we know that it is possible. As far as gas storage options are concerned, what are those options that can be brought on board as soon as possible?

What is the shortest amount of time before we have meaningful gas storage options that would contribute? Do the witnesses have any comments on the LNG terminal at Shannon? I will understand if they do not. I was concerned when Mr. O’Donoghue spoke about the winter ahead. He said that they are hoping for a mild winter and that France can ramp up its production of electricity. That strikes fear into me because it seems as if we are in a position where there is very little we can do in the short term. Will the witnesses share their thoughts on very short-term measures other than saving energy? As I said, that is crucial and we need to revamp the message we are giving people.

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