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

I welcome the debate and I thank colleagues from all sides for their contributions. This is clearly the main item of interest and concern to Irish people, who are facing unprecedented wholesale gas prices, which directly impacts electricity and gas prices in our homes.

We know that over the coming winter we will face higher energy costs, as continued price rises take effect. As I previously outlined, the Government has taken action in 2022 in response to rising energy prices and has put in place a €2.4 billion package of policies to support consumers. The Government is aware that this is not enough and further action will be needed. In April and May, 99% of domestic energy accounts were credited with the electricity costs emergency benefit payment. The total cost of the scheme was just under €377 million. This was of benefit to an extraordinary number of households and is in addition to increased funding for supports such as the fuel allowance and funding to reduce VAT on gas and electricity bills and excise duty on petrol and diesel, making a total allocation of €267 million. Of that, €202 million was taken from carbon tax receipts. That money was sent to the SEAI for residential and community retrofit schemes in 2022.

The Department of the Environment, Climate and Communications has published a review of the strategy to combat energy poverty. A new action plan will set out measures for this winter, as well as longer term measures, and will be published shortly after the budget. A cross-departmental steering group chaired by the Department of the Environment, Climate and Communications has been established and is developing the new action plan. My Department has also been engaging with relevant Departments and agencies on a bilateral basis. This process is running in parallel to the Estimates. The group will also work with the ESRI and the CSO as a research network to improve the measurement and monitoring of energy poverty in Ireland and to provide insights that enhance policy design to protect vulnerable households and ensure supports are targeted towards those most in need.

In relation to Government policy in this area, I emphasise that electricity and gas markets are commercial, competitive and in line with EU policy. They result in greater choice for consumers and businesses in terms of suppliers, products and prices. The position of successive governments for almost 20 years has been that competitive energy markets result in greater choice for consumers and businesses in terms of suppliers, products and prices, and support competition to drive down prices. Within this overall competitive framework, the best long-term policy is to support households with their energy costs through energy-efficiency measures to provide sustainable and long-term protection against energy poverty, to continue with the development of indigenous renewable electricity and to enable Ireland to reach EU renewable energy targets and our own national energy and climate target of delivering at least 80% of renewable electricity by 2030.

We need to promote further electricity interconnection, both to the EU and the UK, and further integrate with the EU internal energy market. In pursuing our objectives of decarbonisation, we need to support those who are vulnerable. Our collective efforts have led, for example, to date in 2022, to over 2,350 free upgrades being provided to homes at risk of energy poverty through the SEAI's warmer homes and warmth and well-being schemes.

The renewable electricity support scheme, RESS, has already begun delivering sustainable and cost-effective indigenous renewable electricity projects. Projects under the first RESS auction are expected to contribute an increase of approximately 15% to our renewable energy generation capacity by the end of 2023, while projects under RESS 2 are expected to deliver an additional increase of nearly 20% to our renewable energy generation by the end of 2025. To date, RESS 1 has seen 353 MW of new renewables connected to the grid, pushing grid-connected renewables to approximately 5 GW. This year will be a record year for the connection of new renewables. About 700 MW will be added, consisting of RESS and non-RESS additions, with over 400 MW more expected to be delivered by RESS 1 next year and close to 2 GW expected from RESS 2 projects between 2024 and 2025. We have had a record year this year and expect another next year. The nature of the RESS auctions means that renewable generators partaking in them pay back to electricity customers when electricity market prices are high. The CRU calculated that RESS 1 projects are expected to return €313 million to consumers through the public service obligation levy over 2022 and 2023.

Further electricity interconnection connecting our grid to the UK and France is under way, improving energy security and allowing us to export great amounts of electricity during high wind generation periods.

I re-emphasise the critical importance of the role of the CRU, which oversees non-price aspects of competition. It has taken and continues to take steps to increase transparency, customer protection and consumer engagement in retail markets.

As I have outlined, in August under response 6 of the national energy security framework and following engagement with customer representative groups, energy suppliers and network operators, the CRU announced enhanced consumer protection measures including an extension to moratoriums on disconnections, better value for those on financial hardship meters and promotion of a vulnerable customer register.

I will outline the Government's commitment to helping households with their energy costs, particularly low income households and those in danger of energy poverty. I have already provided detail on the various welfare allowances, which include the fuel allowance, the living alone allowance and the household benefits package. The Government is acutely aware of the impact on households of increasing energy costs. The Government's primary response is to increase funding for the social welfare system to counter rising costs of living, of which energy costs are one of the biggest drivers. To address this directly, budget 2022 increased the weekly rate of the fuel allowance. Throughout 2022, the Government has responded to rising energy prices with further increases to that allowance.

The Department of Social Protection also pays an electricity or gas allowance under the household benefits scheme. The household benefits package is separate from the fuel allowance scheme and a further €203 million will be spent on the scheme in 2022. Over 483,000 households will benefit from this to assist with their household bills, including gas and electricity bills. The gas and electricity element is paid at a rate of €35 per month, 12 months of the year. Targeted supports provided under the supplementary welfare allowance scheme, the exceptional needs payment and the urgent needs payment may be made to help to meet an essential, once-off cost which an applicant is unable to meet out of his or her own resources. In addition, under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances who have special heating needs.

I reiterate that there are supports in place to assist with household and business energy costs and mechanisms are there which can be used to provide further assistance. Moreover, our regulatory framework underpins a competitive market in which consumers can make considerable savings. That framework also provides protections to consumers via the energy regulator, the CRU. As set out in the amendment, the Government has already put a €2.4 billion package of measures in place to support people to meet the cost of energy. It continues to monitor this unprecedented and evolving situation closely to inform ongoing consideration of further action, particularly in the context of the imminent budget 2023. I welcome this debate and thank all Deputies for their contributions.

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