Dáil debates

Wednesday, 13 October 2010

6:00 pm

Photo of Peter KellyPeter Kelly (Longford-Westmeath, Fianna Fail)

Will the Leas-Ceann Comhairle the Minister?

The Government has introduced a wide range of comprehensive actions aimed at delivering a secure, sustainable and competitive energy supply. The Minister outlined these actions in some detail last night. However, I will touch on some of them this evening.

I will first examine the issue of pricing. We must keep our electricity and gas costs down. The fact remains that Government policies, along with falling natural gas prices, have led to significant reductions in electricity prices. In some cases, prices are below the European Union and eurozone average for both domestic and business customers. Given that the Minister cited statistics from EUROSTAT when he spoke on this issue at length last night, I will not repeat his figures.

One of the reasons for the improvement in prices has been the opening of the energy market. A host of suppliers offers a range of products to different segments of the market and significant discounts are available to domestic and business users who switch suppliers. Immediate discounts can be as high as 14%. Competition is the way forward and in that respect and I welcome the opening of the market.

At all times the Government has remained committed to protecting those who are most at risk of energy poverty. We are in the process of producing a comprehensive affordable energy strategy which will outline actions to protect vulnerable people. When published, the strategy will significantly influence energy affordability for years to come. As the Minister stated last night, while it has taken longer than expected to bring the strategy to Government, it is important that we get it right. After all, it will influence our approach to energy affordability for years to come.

Recognising the difficulties that can arise from fuel poverty, the Government provides various supports to low income households. The warmer homes scheme, for example, has helped community based organisations and private sector contractors to provide nearly 51,000 energy efficiency improvements in low income households over the past nine years. This year alone we spent close to €30 million on energy efficiency in vulnerable homes. I compliment and congratulate the staff working on the warmer homes scheme in County Longford on the magnificent job they have done. They are pleasant and courteous and have visited homes at short notice and strive to help people to the best of their ability.

A further 380,000 people are in receipt of either the free electricity or free gas allowance under the household benefits package. The Minister for Social Protection recently announced that this scheme will also cover the cost of the PSO levy. In addition, 340,000 customers receive fuel allowance payments of €20 per week to help with home heating costs for 32 weeks from September to the end of April. More than 20% of domestic electricity customers are in receipt of some form of direct financial support for their energy costs through the Department of Social Protection.

On the issue of disconnections, I favour the use of pre-pay meters. I compliment the Society of St. Vincent de Paul and the Money Advice and Budgeting Service in my constituency on the great work they are doing. While some people support the Commission for Energy Regulation's proposal to rebrand Bord Gáis, I cannot justify or support such a rebranding if it will cost money.

I share the concern expressed by many people at recent newspaper headlines concerning an increase in the number of disconnections. I was somewhat heartened to learn, however, that all suppliers are required to put in place codes of practice setting out the steps that must be taken before initiating a disconnection. Protections are also in place for vulnerable customers to prevent electricity suppliers from disconnecting elderly customers in the winter months. I appeal to the Commission for Energy Regulation, as a matter of urgency, to bring together the various stakeholders and publish a review of disconnections shortly. I await the commission's document with interest.

If we have learned anything this evening, it is that criticisms of the Government's energy policies do not stand up to scrutiny.

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