Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank the Deputy for raising what is a very important and timely issue at present affecting every household in the country.

The final retail price of fuel is determined by a number of factors that include the costs of production, distribution, global market factors, international exchange rates, taxation, wholesale market contracts as well as individual retail pricing policies. The current spike in energy prices arises principally from the global recovery from the Covid-19 pandemic in conjunction with supply constraints and is being witnessed across the European Union and other countries.

Wholesale electricity prices both in Ireland and across Europe have risen substantially in 2021, with high international gas prices, low levels of wind, increasing carbon prices and a lingering 2020 winter.

As the Deputy will be aware, the Government approved the establishment of the electricity costs emergency benefit scheme under which a payment of €100 will be made to every domestic electricity customer as a once-off measure to mitigate the effects of the unprecedented rise in electricity prices on domestic electricity customers.

The Deputy will be aware work will commence on that early in the new year. It will require legislation. We look forward to the co-operation of the House on that issue so that people can get the value of this in the spring of next year.

It will run in conjunction with the fuel allowance, which runs from October right into April. There is cold weather in January, February, March and into April and it is important that extra €100 would be available, not only to the people who are on the fuel allowance but to everybody else in society who is experiencing the high cost of fuel. That will be a benefit. It is a once-off situation. I know of no other country in the world that is doing that. It is an excellent initiative. There is substantial funding available for that.

The discussions we are having with the sector are through the regulator. The ESB will provide the cheques directly to the individual suppliers which will credit every consumer's account. The people will get the benefit of that as early as possible in the new year.

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