Dáil debates

Wednesday, 9 February 2022

Electricity Costs (Domestic Electricity Accounts) Emergency Measures Bill 2022: Committee and Remaining Stages

 

5:47 pm

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I wish to clarify that whether amendments are accepted or otherwise has nothing to do with the Government. That is a Bills Office issue. Similarly, I take Deputy Bacik's point about the timing of amendments, but that was not within our control.

I wish to respond to this amendment and to each of the three subsections it is proposed to insert, paragraphs (e), (f) and (g), in order. Paragraph (e) concerns criteria and system design. I emphasise that this scheme is an exceptional measure designed to be delivered directly to all domestic electricity accounts using the existing electricity billing infrastructure and without application of qualifying criteria. Using that infrastructure, it is not possible to determine whether individual premises are used for purposes other than a principal private residence. This design of the scheme is aimed to enable payments to be made at the earliest possible opportunity in 2022, without delay and in light of the exceptional rise in energy prices.

As for the proposed insertion of paragraph (f), for operational reasons, the scheme can credit only domestic electricity accounts. I understand that the majority of the 300,000 tenancies registered with the RTB hold their own domestic electricity accounts. In such instances, the payment will be applied directly to those households. Others who have tenancy agreements whereby tenants pay their actual share of each bill will benefit from the payment because the amount of the bill will be reduced by the amount of the payment. A small proportion have in place other arrangements whereby electricity costs are part of the overall rental cost. In consultation with my Department, the RTB is working on a public information campaign on this legislation. In the event of a dispute arising between a tenant and a landlord as a result of a failure to pass on the credit payment, the dispute resolution mechanisms run by the RTB are available.

I turn to the proposed insertion of paragraph (g). The scheme is being administered on the basis of the current electricity billing mechanisms and arrangements of ESB Networks and suppliers in order to facilitate the payments to be made at the earliest possible opportunity in 2022. While I acknowledge the outcome Deputy O'Rourke is trying to achieve with this amendment, a more practical solution would be for individuals who choose not to benefit from this payment to make a donation to charity. A number of NGOs do very important work to alleviate energy poverty. That would be the most practical way of ensuring that any payments under this scheme which people do not wish to retain for themselves can be quickly redirected to those who are in greater need, particularly in respect of energy poverty. I would be very supportive of that. In this way, the outcome the Deputy seeks could be realised as directly as possible and in the best interests of those living at risk of energy poverty. On that basis, I propose, unfortunately, to reject the Deputy's amendment.

As for the wider issue of protections we need to apply, the relevant Cabinet subcommittee will meet tomorrow, as has been publicised, to consider what further measures may be possible. However, we should not ignore the fact that there has been significant intervention, especially in last year's budget. I refer, for example, to the expansion of the fuel allowance scheme and the extension of its qualification criteria. That is one of a range of income supports paid by the Department of Social Protection, which also includes general social welfare schemes, the living alone allowance to support those living alone and at higher risk of poverty, and the household benefits package. The budget last year increased the weekly rate of the fuel allowance by €5 to €32 per week such that €914 would be paid to eligible households over the course of this winter. In addition, from January this year there was due to be a €20 increase, from €100 to €120, to the income threshold for qualification for the fuel allowance above the appropriate maximum rate of the contributory State pension.

Cognisant of rising fuel costs, the Minister for Social Protection asked her officials to prioritise work required in order that this change could be implemented at the same time as the increase in the fuel allowance back in October. The Department of Social Protection has completed that work, and that €120 allowable means a sum that is significantly more than the €33 weekly rate of fuel allowance. Increases were also made to the qualified child payment, the living alone allowance and the income threshold for the working family payment, exactly the sort of targeting I heard Deputies rightly call for. Those are the sorts of measures the Government has been putting in place. That will be funded by the additional carbon tax revenues of €105 million allocated in this year's budget to the Department of Social Protection.

Furthermore, the household benefits package consists of a set of allowances which help with the costs of running a household. It includes allowances towards covering electricity or gas costs. Recipients, the majority of whom are pensioners, are paid €35 per month. The Department spent approximately €265 million last year on the household benefits package. Targeted supports were also provided under the supplementary welfare allowance scheme, the exceptional needs payments and the urgent needs payments. Under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances who have special heating needs - for example, in cases of ill health. This is in addition to the basic welfare and pension rates and adjustments to income tax introduced primarily as a response to the cost-of-living increases more generally and driven in part by higher energy prices.

I mention that because, where measures are taken that are targeted in that way and which benefit social welfare recipients, that should be acknowledged. Forgetting about it politically does not respect the importance that attaches to this issue. Measures such as those are needed and more may be needed. Ignoring what is in the budget and what has been done does not do service to that cause. I thank the Deputy for his amendment. I regret that the others could not be moved today. Unfortunately, I cannot accept the amendment.

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