Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank all Deputies for their insightful comments on this emergency legislation. It is emergency legislation. We are trying to address an immediate problem within this quarter and get money into people's accounts. We are in winter. A large number of aspects of this problem were touched on by different Deputies. The problem of energy poverty was raised by many. I thank Deputy Joan Collins for talking about that so eloquently. Deputy McNamara referred to the longer term issue of energy generation. When we are faced with a big problem, we have to tackle both. We have a short-term energy crisis. We have people who are cold in their homes and cannot afford to pay their bills. We also have a longer term and a medium-term problem. All of those things need to be tackled. None of the solutions will be ideal or attractive to everybody. I appreciate the Deputy's comments and I appreciate the widespread support from Deputies from all parties that we should do this, even if there are other things we should do as well. My ears and mind were open to the suggestions that were made. I thank the Deputies.

There was a broad range of contributions, including on renewables, the cost of living, and the role of the Commission for the Regulation of Utilities. I am going to keep my comments focused on this Bill. My overarching message today is that while the scheme this Bill will establish is just one of a suite of measures, it is critical it is put in place within this quarter. I seek the support of the House to achieve that. It is a matter of serious concern to Government that recent electricity and gas increases caused by international conditions are putting increasing pressure on consumers, especially those in a more vulnerable economic position. I appreciate the important points Deputies have made on the pressure being felt by many households with the rise in the cost of living. It is important to see this Bill as one of a suite of measures. It is not just that there is €100 and nothing else. A broad range of measures are being taken by the Government.

Before the previous budget and the budget before that, lengthy time was spent trying to make sure energy poverty was addressed. In the face of the changes in the carbon taxation structure, we have to be aware people are not being punished who do not have an alternative. The important points on the need to act on energy poverty will, I believe, be best moved forward in the forthcoming revision of the strategy to combat energy poverty. This will be in addition to the €109 million that has been allocated to energy efficiency upgrades and the €146 million projected to be spent on social protection measures in 2022. Alleviating energy poverty will also be a key priority in the forthcoming national retrofit framework. I welcome the support voiced for continuing to drive the long-term solutions to volatile energy markets represented by energy efficiency and renewable generation, and ensuring we grasp the real benefits of a just transition.

The Government is determined to act quickly to help people further with these higher energy prices. It is worthwhile to restate the purpose of the Bill as well as the operation of the emergency measure. The Bill provides the establishment of a scheme for the purpose of making the electricity cost emergency benefit payment of €100 in 2022. The moneys for the scheme will be allocated by the Minister, Deputy Ryan, with the consent of the Minister for Public Expenditure and Reform, out of moneys provided by the Oireachtas. The amount will not exceed €215 million and will be for the purpose of making a once-off €100 payment by suppliers to each domestic electricity account held by them. This is on the basis of there being approximately 2.15 million domestic electricity account holders as indicated by the Commission for the Regulation of Utilities, CRU. The CRU will provide oversight of the scheme and it will be operated by the distribution system operator, ESB Networks.

The mechanism by which the scheme will operate is as follows. The Minister will provide under regulations for a date, to be known as the relevant date, on which the distribution system operator will calculate the total number of domestic electricity accounts in the State on the basis of MPRNs. The MPRN is the unique identifier for all accounts and as such must be used to ensure the €100 payment reaches each account. ESB Networks will notify me of this number and this will allow the calculation of the necessary allocation of moneys for the scheme. On the effective date, which will also be set out by me in regulations, ESB Networks will notify each electricity supplier of the assigned MPRN for each domestic electricity account it supplies and ESB Networks will, on the effective date, notify suppliers of the amount of money it will transfer to them for the purposes of the scheme. I will set out in regulations the period within which ESB Networks will transfer the funds to suppliers for the sole purpose of making payments under the scheme and, following receipt of these funds, suppliers will, within the period prescribed by me under regulations, credit each domestic electricity account held with it on the effective date with a payment of €100.

The CRU as independent regulator will have oversight of the scheme. It will put in place administrative and operational arrangements to ensure ESB Networks and suppliers perform their functions under the scheme. As is standard practice, the CRU will report to me in respect of the performance of ESB Networks and suppliers of their functions under the scheme. The CRU, on the basis of its existing powers to issue directions and secure compliance by licence holders with their obligations, will ensure ESB Networks and suppliers perform their functions under the Bill.

Under the Bill, I shall appoint an auditor and ESB Networks and suppliers will be required to make available to the auditor all books and records relating to the performance of their functions under the Bill.

Suppliers and ESB Networks are required to repay any moneys received by them which have not been used for the purposes of the scheme.

I turn to prepay, which some Members mentioned. Prepay is often associated with people who are in energy poverty. It is essential that the scheme will apply to all domestic electricity account holders, including pay-as-you-go customers. The payment will apply on a once-off, emergency basis, as has been approved by the Government. It is, however, one of a suite of near- and medium-term measures. The total allocation of €215 million is on the basis of a payment of €100 being made to each account. It is standard practice to specify in legislation the maximum amount of Oireachtas funds which can be used.

As for tenants in rental accommodation, my Department, with the support of the Department of Housing, Local Government and Heritage, is working closely with the RTB to ensure that those in rented accommodation who are due the payment receive it. I understand that there are approximately 300,000 tenancies registered with the RTB and that the majority of those tenants either hold their own electricity account or pay their landlord for electricity based on an actual bill and would therefore receive the benefit directly. My Department is working with the RTB on a public information campaign to ensure that any tenants, expected to be a small minority, for whom electricity costs are not separate from overall rental costs are aware of the scheme and of their entitlements. In that context, should any dispute arise between a tenant and his or her landlord, there are existing dispute resolution mechanisms provided by the RTB.

The scheme can become operational only following the passing of this underpinning legislation. As Deputies will appreciate, this emergency measures Bill aims to ensure that the credit can be made to domestic electricity account holders as soon as possible. The scheme will apply to every domestic electricity account holder using his or her unique MPRN to allow the payment to be credited to individual bills. This does not mean that premises other than principal residences, such as holiday homes with a domestic electricity account, will be included in the scheme. The scheme uses the above single eligibility criteria to enable payments to be made at the earliest possible opportunity in 2022. The scheme does not have additional eligibility criteria. For example, it is not means-tested as the application of such criteria would override the automatic nature of the current scheme and would require input from customers through formal applications and cross-checking by administrators, which would significantly delay the roll-out of the payments. Therefore, the automatic crediting of all residential customer accounts is the most effective immediate-term methodology. The CRU has advised that to implement the scheme in the timeframe required, suppliers will use existing billing systems to process the credit. Payments will be credited to domestic electricity accounts. This is why the function is conferred on suppliers, as this is the existing infrastructure which applies.

The CRU has considered the question of an opt-out for people who do not wish to receive the payment; however, the scale of work required on the billing system would be of an order that would significantly delay the issue of this payment to all electricity users. While I appreciate people's views on this, I also feel it is important to move ahead with administering the scheme in order that people receive their payments as quickly as possible.

The scheme is in addition to the Government's primary response to rising energy prices, which is to use the tax and social welfare systems to counter rising costs of living, of which energy costs are one of the biggest drivers. Further consideration to tackle increases in the cost of living is under way.

As for people who are in energy poverty, targeted intervention is required. Such action is already being taken through the social welfare system. In budget 2022 we increased the weekly rate of the fuel allowance by €5 to €32 a week. There were increases to the qualified child payment, the living alone allowance and the income threshold for the working family payment. The total cost of these interventions is projected at €146 million in 2022. This will be funded by additional carbon tax funds of €105 million that have been allocated to the Department of Social Protection.

Am I running out of time?

See this speech in context