Dáil debates

Friday, 7 February 2014

Energy Regulation (Code of Practice) Bill 2013: Second Stage [Private Members]

 

12:40 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour) | Oireachtas source

I thank the Deputies who have contributed to this discussion on Deputy Moynihan's Bill. I very much welcome the debate because the Deputy is addressing a real issue. It is scarcely surprising that if one has had six years of economic recession that the number of people finding difficulty in discharging their energy bills has been rising. Given the scale of unemployment, notwithstanding the extraordinary figures of last year which took most commentators by surprise - of more than 60,000 people being added to the workforce - the fact is that we have an unconscionably high level of unemployment. That goes to the heart of the problem we are addressing here, that of people who have been plunged into unemployment, some of whom are now in long-term unemployment. That is not to say there is not a problem with the working poor. People on low incomes find themselves in circumstances where they are added to the category of vulnerable customers, and there it is a real issue.

Colleagues across the House agreed with the benefits of the proactive steps taken by the regulator. My Department and myself in meetings with the regulator about this issue, since the installation of pay-as-you-go meters in 2011, have constantly drawn attention to the issue of fuel poverty. The improvements and proactive decisions of the regulator have certainly significantly helped. To give the House an idea of this, nearly 20,000 electricity pay-as-go-meters were distributed to customers in financial difficulty in the first three quarters of last year.

This brings the number of pay-as-you-go meters installed to date to 51,545. In the case of gas, during the first three quarters of 2013, 15,000 pay-as-you-go meters were installed for customers in financial difficulty, bringing the total number of meters installed in that sector to 81,421. Suppliers will argue - we do not have evidence to the contrary - that the installation of pay-as-you-go meters is the reason disconnection numbers are reducing. I tend to believe this is the case.

As has been said, for a period of five months a customer may not be disconnected. However, it remains the case that disconnections are continuing because people are in financial distress. The task force on disconnections about which I spoke is seized of this issue and examining what new steps can be taken in this regard. It has already identified some improvements that could be made. I will meet again later this month the CEOs of the supply and network companies and the regulator, following which I will have something further to say on the issue.

Having grounded the issue in the scale of unemployment, we must look at the bigger picture of how the State, in circumstances where it imports virtually all of its oil and gas, can best use the resources available to it to alleviate fuel poverty. Some 94% of our fuel is imported. We must also look at how the State can use its intervention most productively and efficiently.

I agree with Deputy Michael Kitt's remarks about the warmer homes scheme and that thermal efficiency is the most radical contribution we can make to improving the circumstances of older people and those in hardship. Tests and surveys have been carried out of homes that have been properly retrofitted. Invariably, the word is that this retrofitting has transformed the lives of those concerned. We propose to continue this programme, notwithstanding the commitment to transition to a pay-as-you-go system. The problem with such a system, as evidenced by the Green Deal scheme in Britain, is that given the climate we are in, following the banking collapse, people are reluctant to take on board loan products. Therefore, the grants based incentives are, as stated by Deputy Michael Kitt, doing their job and we are determined to try to maintain them.

As my time has expired, if Deputy Michael Colreavy wishes to send me a note on the case mentioned by him, I will be happy to try to be of assistance, if I can. There appears to be a misunderstanding in that regard. Notwithstanding the debt involved, it is possible to switch supplier. I am, therefore, anxious to see the details of the case and if I can help, I will do so.

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