Mr. Matthew Collins:

The Department commissioned a modelling study in 2016 that applied what is called an objective approach to measuring energy poverty. The research found that 28% of Irish households were in fuel poverty. In recent months, the ESRI applied the same methodology and its analysis showed that the rate of households spending more than 10% of their income on heating now stands at 17.4%. A separate ESRI study also noted the strong correlation between energy poverty and basic deprivation so a number of studies have been undertaken by the Department.

To address data challenges relating to energy poverty, the Department and the SEAI are participating in a CSO-led project to develop energy poverty indicators. It is anticipated that this work will provide valuable outputs in informing future national policy and presenting key statistics in the public domain to further our understanding of how to alleviate energy poverty. We are also hopeful that it will also help us to focus energy poverty supports on those most in need. This project is ongoing and the CSO has indicated that it will begin publishing reports in late 2019 or early 2020.

The committee is probably aware of a number of policy responses to address energy poverty. These include income supports, consumer protection, building regulations and efficiency schemes. There is a strong rationale for helping low-income households to heat and light their homes adequately through dedicated energy efficiency support schemes. While improving the energy efficiency of the home may not be sufficient to lift a household out of poverty, it can drastically and permanently reduce its energy needs in a way that income supports cannot. The key role of energy efficiency is reflected in the climate action plan's objective of retrofitting 500,000 homes by 2030. A high-level retrofit task force has been established and a total of €3.7 billion has been provided under Project Ireland 2040 to support the achievement of this target.

The warmer homes scheme is our primary grant support scheme for households in energy poverty. The scheme provides free energy efficiency upgrades to vulnerable households making those homes warmer and more affordable to heat. Recent years have seen a significant increase in the funding provided for the warmer homes scheme. The allocation has increased from €15 million in 2015 to stand at €40 million in 2019. In addition to increased funding, the scheme has also been expanded to include deeper measures such as external wall insulation, heating upgrades and window replacements in the worst-performing homes. The eligibility rules underpinning the scheme have also been extended to encompass greater numbers of people.

The Department also funds the warmth and wellbeing scheme, which is a joint policy initiative with the Department of Health. This pilot scheme aims to investigate the health impacts of improving the energy efficiency of a home. Since 2016,in excess of €25 million has been invested in improving homes under this scheme. Other schemes administered by the SEAI such as the better energy communities scheme also provided higher rates of grant for lower-income households. These schemes have resulted in more than 140,000 homes receiving free upgrades since 2000.

I understand the committee has the full text of my statement. In conclusion, energy efficiency measures are central to addressing the root causes of energy poverty as opposed to just treating the symptoms. The Department will, therefore, continue to improve how energy poverty schemes target those most in need in line with our climate action plan commitments.