Damien English (Meath West, Fine Gael) | Oireachtas source

Within this overall competitive framework, the best long-term policy is, in our view, to support households with their energy costs through energy efficiency measures, with the Government providing a total retrofit budget in excess of €280 million for this year. There are long-term commitments in the national plan, setting out where we hope to go in the years ahead. We will continue with the development of renewable electricity to enable Ireland to reach EU renewable energy targets and our own national energy and climate target of delivering at least 70%, and up to 80%, of renewable electricity by 2030. We will continue with measures such as the EU trading emissions scheme and carbon tax as providing incentives to switch to cheaper renewables and lower carbon energy sources. These measures provide essential economic signals to support the energy transition away from fossil fuels. Carbon pricing is an essential element of any credible plan to decarbonise the economy while supporting those most directly affected by allocating the revenues received to fund targeted social welfare recipients, home retrofits and sustainable farming methodologies. We will also continue to promote further electricity interconnection both to the EU and UK, and to further integrate Ireland with the EU internal energy market.

In pursuing these objectives, our collective efforts to decarbonise electricity generation have led, for example, to over 143,000 homes receiving free upgrades under the better energy warmer homes scheme. In the first six months of 2021, the average value of the energy efficiency measures provided per household was approximately 17,100. Strong growth in wind power, which has led to a major impact on energy production costs, is key to achieving our greenhouse gas emission reductions. Further electricity interconnection to both the UK and France is under way and planned.

I will outline the regulatory regime in which we operate. Operating within an overall EU framework, the independent regulator, the CRU has a wide range of economic and customer protection functions. It monitors energy retail markets to ensure that competition continues to develop for the benefit of the consumer. The CRU also oversees non-price aspects of competition and has taken, and continues to take, steps to increase transparency, customer protection and customer engagement in retail markets. I will also note that under the voluntary industry energy engage code, suppliers will not disconnect a customer who is engaging with them. That point was raised by a number of Deputies and I want to clarify that is the situation. It is important to engage and not to avoid that phone call or communication.

Suppliers must provide every opportunity to customers to avoid disconnection and must identify customers at risk of disconnection and encourage them to talk to the suppliers as early as possible. Suppliers are also obliged to offer a range of payment options, such as a debt repayment plan, for a customer in arrears. In fairness, most of the suppliers honoured that, certainly during the pandemic and other difficult situations in this country. We expect a similar approach in the difficult months ahead when we know energy prices will be affected.

I would also like, in particular, to mention the regulator's role in promoting switching and smart metering, both of which offer immediate benefits to consumers. CRU has certified three price comparison websites, namely, bonkers.ie, switcher.ie, and powertoswitch.ie, to assist consumers to switch. Even if they do not switch, customers should engage with their supplier to avail of the best offer available. Switching supplier could save a customer consuming the average amount of energy up to €281.60 on an annual electricity bill.

It could also result in a €553.69 increase on a combined annual electricity and gas bill and €279.09 on an average annual gas bill. They are comparisons made on 5 October 2021 using some of these websites. Based on the CRU data, active customers who switch suppliers or renegotiate with their current suppliers every year for the past four years could have saved €704 on gas, €1,078 on electricity and €1,696 on their dual fuel costs. A recent CRU survey found that more than half of electricity and gas consumers will switch supplier at least once. People are taking that advice and are switching. We all know it can be head-wrecking to try to make some of these phone calls We need to work with the regulator to make sure that process is streamlined because it can be very frustrating. It is important to recognise that it is worth it in the end.

My message is clear. Customers should avail of switching to get the best deal in the market. For those who are struggling with energy bills and are in receipt of support for their bills, this is even more important. That is because switching supplier or to a lower-cost product with an existing supplier makes supports go further in meeting their costs. The programme for Government contains a commitment in the context of ensuring that the energy efficiency and potential of smart meters is realised and that all mechanical electricity meters will be replaced by 2024. Work in that regard is well under way. The smart meter upgrade, led by the CRU, is a meter replacement programme to move to modern smart-ready technology. New generation electricity meters are being rolled out across Europe and internationally. When the programme in Ireland is completed in 2024, all domestic and business premises will have new modern meters installed.

I will now outline the Government's commitment to helping households with their energy costs, in particular low income households and those in danger of energy poverty, in the months ahead. I have already provided the details of various welfare allowances, including the fuel allowance, the living alone allowance and the household benefits package. The fuel allowance is a payment of €28 per week for 28 weeks. The budget for this for the upcoming season is €292 million. That money is for an estimated 370,000 households. The household benefits package includes allowances towards covering electricity or gas costs. Recipients, the majority of whom are pensioners, are paid €35 per month. The Department of Social Protection will spend approximately €195 million this year on the household benefits package for more than 470,000 customers. The living alone allowance, which is targeted at the recipients of certain social welfare payments who live alone and who often have significantly higher heating costs, is paid at a rate of €19 per week in addition to primary social welfare payments such as the State pension.

Targeted supports provided under the supplementary welfare allowance scheme, exceptional needs payments and urgent needs payments may be made to help meet essential once-off costs which an applicant is unable to meet out of his or her resources. In addition, under the supplementary welfare allowance scheme a special heating supplement may be paid to assist people with special heating needs. It is important that they come forward and engage with community welfare office and social protection offices. Assistance is there once people come forward in time, explain their situation and produce the evidence. As the Minister, Deputy Humphreys, said, these schemes are constantly under review and she is constantly trying to improve them. In launching the winter fuel allowance on 26 September, the Minister noted that heating costs are a concern for many, and that households have seen their bills increase and this would be an important factor as budget 2022 negotiations continue in the days ahead and are completed by next Tuesday.

Finally, I reiterate that there are supports in place to assist with household energy costs. We understand that it is extremely difficult and people are very concerned, which is why I accept the importance of having this debate. Our regulatory framework underpins a competitive market in which consumers can make considerable savings. As was said earlier, we need to make that easier and work with our consumers. That framework also provides protections to consumers via the energy regulator, the CRU. The Government, as set out an amendment, will provide additional social welfare support in the budget to protect the most vulnerable against fuel price increases.

I welcome the debate and thank Deputies for their contributions. I also thank the proposers of the motion.

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