Seán Power (Kildare South, Fianna Fail)

I will outline the position as I see it. I am never one to be blinkered, no matter what side of the fence I am on. I have also been on the Opposition benches. I know that whatever any Government can do in this area, one will never be satisfied as there will always be difficult cases. In fairness to the Government, we have focused in recent budgets on older people. Much more needs to be done and we have depended to a large degree on agencies like the Society of St. Vincent de Paul, which has played an important role in identifying people at risk and assisting them.

My ministerial colleagues, Deputies Ryan and Hanafin, have outlined the measures they have taken and outlined their intention for the future. A number of the policies we have implemented have had a very positive effect. The warmer homes scheme is a key mechanism through which low income households, such as those in receipt of the fuel allowance and disability benefit, can benefit from the provision of attic insulation, draught proofing, lagging jackets, energy efficient lighting, cavity wall insulation and energy advice at little or no cost to eligible households. These measures can significantly reduce the amount of energy required to heat and light the home.

Major improvements in energy efficiency throughout the economy are essential for controlling and reducing energy costs in the short to medium term, a fact that has been recognised by the European Commission and the G8 leaders. The Minister, Deputy Ryan, explained how we are focusing on a number of key areas to mitigate the impact of the increasing cost of energy, including increasing the energy efficiency of residential and commercial buildings, especially for those on low incomes. We have also concentrated on improving people's understanding of their energy usage patterns, and we have begun a roll out of smart metering. Deputy Calleary stated he would like to see it done a little quicker. However, it will have a positive impact and will succeed in changing consumer behaviour, which will result in a major saving. The evidence is there and people can see that with small changes, they can save a considerable amount of money over a year. That is a scheme we look forward to rolling out.

Deputy Ryan also referred to our dependence on fossil fuels and to augmenting the level of renewables in our fuel mix. We have not concentrated on our dependency on oil and the need for people to change. The Government has a big role to play in that, but we all have a role to play as individuals and we can make a difference. The national energy efficiency action plan will act as an important mechanism through which we can manage the process of achieving our energy efficiency target for 2020. Fundamental to achieving this target is our ability to create the appropriate structures that effectively underpin the identified measures and that facilitate the introduction of new measures that will contribute to our national energy savings.

Ensuring consumers have the appropriate information to make the right energy usage decisions is an important element in helping to reduce energy demand. The Power of One national energy efficiency awareness campaign has been successful in making consumers and businesses understand the value of energy and how they can take simple actions that can result in big savings. There are a number of television programmes that have been very helpful in contributing to the education of people in energy efficiency. The smart meters are of great importance and the roll out of a national smart meters trial will help make people aware of how much energy they are using and help them to reduce costs. A number of speakers have mentioned it this evening. It is a wonderful idea and the change in behaviour will have significant benefits.

While energy efficiency is very important, it is only part of the answer to make energy more affordable for low income households. The Minister for Social and Family Affairs stated that the main role of the social welfare system is to provide income support and that since December 2001, social welfare payments have increased by between 71% and 88%, whereas energy prices have increased by 74% and inflation by 28% over the same period. In successive budgets, we have targeted older people and we gave a commitment on targets for old age pensions in the programme for Government. This occurred when times were good, but it was the right thing to do and I am proud that we did it. In addition to the primary payments, there is a number of social welfare schemes to assist with heating costs, specifically the national fuel allowance scheme, the special heating needs supplement and the household benefits package. These arrangements have been considerably improved in recent years.

The Commissioner for Energy Regulation normally announces one annual increase for electricity and gas prices. In the past, the commissioner has amended the increase and has allowed for price reductions when fuel prices have gone down. Unfortunately, fuel prices have almost doubled, leading to consequential increases in electricity and gas tariffs. In order to cushion consumers from the worst impact of unprecedented volatility in international fuel prices, the commissioner has announced a two-phased approach, with the first increase taking effect in the summer, and the second increase taking effect next January. There is no point in blaming the commissioner for this. It is like blaming the weatherman for poor weather. The commissioner has a job to do and there was a method to what he did by having two increases. I thank Members for their contributions.

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