Seán Haughey (Dublin North Central, Fianna Fail)

Schools, like all other users, are required to pay for a range of utilities such as electricity, water and telecoms, and gas is but one of these. It is important the pricing structures for any of the utilities as they apply to schools should be determined on a transparent and fair basis.

Responsibility for the regulation of the natural gas market is a matter for the Commission for Energy Regulation, which is an independent statutory body. My Department's understanding is that under the regulated tariff structure for Bord Gáis Energy, the level of each customer's consumption of gas determines which sector they are in with regard to tariffs. This applies regardless of whether the consuming premises is a home, school, shop or industrial premises. It is therefore not true to say that schools are regarded as businesses for the purpose of paying for gas. Since categorisation is based on consumption levels and not governed by the type of business or activity concerned it may be the case that individual schools are on a tariff that also applies to industrial or commercial customers with the same level of usage.

It is also important that schools look closely at their level of gas consumption as a means of lowering their costs. In 2009, in order to improve energy efficiency in existing schools, my Department introduced a new €20 million scheme to improve roof and cavity wall insulation levels in school buildings across the country. The devolved energy efficiency scheme, which was implemented with the help of Sustainable Energy Ireland, allowed schools to apply for funding on a once-off basis to upgrade the fabric insulation in attics and the external cavity walls of their buildings.

My Department has also organised discussions with school management representatives recently with a view to a more collaborative approach to the procurement of goods and services within the school and VEC sectors. This meeting included representatives from the National Procurement Service who explained the potential for the unit to help schools achieve savings. It is intended that the initial focus will be on the procurement of energy supplies.

The capitation grant is the main funding mechanism for schools to enable them meet their day to day running costs including for utilities. The Deputy will be aware that notwithstanding the difficult economic climate the renewed programme for Government has made specific provision for the maintenance of school capitation levels at current rates.

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