Dáil debates

Thursday, 24 February 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Energy Policy

4:35 pm

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein) | Oireachtas source

I thank the Minister of State for taking this topical issue so late in the evening. I would have much preferred that the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, took this on the basis that I spoke to him previously in relation to it this week. I have sent information on to him. He was also involved in launching this scheme once upon a time in 2007. At that time at Carlinn Hall, the idea was that it was billed as the State's largest sustainable energy development. The homes went on the market as the houses of tomorrow. Obviously, we had the Celtic tiger crash, but later a developer bought it and he developed the majority of the 234 houses, which were then sold on. The heating system is a communal heating system. It was initially to be fed by biomass, but this did not work out and it was replaced with gas. I will say this in a straightforward way: it is an utterly inefficient system. It is basically losing 50% of the units of gas. It is operated by Frontline Energy. Frontline Energy does not make any money on the gas. It makes money on a standing order. Therefore, the problem is going to get worse, because of the disgraceful invasion by the Russians of Ukraine. Beyond that, however, we are now in a scenario where people are being charged on the basis of an inefficient system, combined with the huge price of gas.

The Irish Timeshas done a far better job than I will about this. It spoke about Tomás and his family who are paying a bill of €575. Its equivalent the year before was €258. John and his wife are paying a €375 bill and its equivalent the year before was €180. I spoke to Ann Marie who earlier in the year got a bill of €70. It is now up to €353.38.

A number of steps need to be taken. This is straightforward. The current system is utterly inefficient and this needs to be examined from a point of building regulation. Energia charges Frontline Energy on the basis of a commercial unit rate. Communication has happened with the CRU but it has indicated it has no responsibility in respect of these types of heating systems. This is not going to work. The only thing that will work, most likely, is legislative change and there needs to be a capping. We need to accept these are residential units. Families in Dundalk are being screwed and we need a long-term solution.

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