Dáil debates

Thursday, 15 September 2022

Security of Electricity Supply: Motion [Private Members]

 

4:35 pm

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Independent) | Oireachtas source

I welcome the opportunity to contribute to this debate and I thank my fellow members of the Regional Group for bringing forward this motion. The purpose of this motion today is to discuss energy security, including supply and demand, electricity generation capacity, plans to best manage supply and demand and, of course, to protect vulnerable users in the coming months.

At the outset, I would like to emphasise the impact the war in Ukraine is having on gas market prices and, in turn, on both gas and electricity bills, particularly over the coming winter and beyond. However thousands of households face choosing between eating or heating this winter. The current electricity crisis caused by the mismanagement of electricity supplies is causing significant financial hardship to families and businesses throughout the country and County Louth. Recent estimates from the Economic and Social Research Institute, ESRI, indicate that up to 29.4% of households now spend more than 10% of their income on their home energy needs.

There are existing challenges, additional to the war in Ukraine, to the security of electricity supplies in Ireland. Concerns over supply risks have arisen largely due to the non-delivery of previously contracted capacity. Without capacity, with increasing electricity demand, and the increasing unreliability of some existing plants, what are we to do?

With regard to the security of supply of oil, the short- to medium-term outlook has stabilised somewhat, with petroleum products availability having improved recently. However a big part of these increased costs are due to the wholesale gas increases. With regard to the security of supply of gas, supplies from Russia to Europe have been severely reduced over the past year and continue to be a cause of concern for European energy security. This has resulted in natural gas prices that are at least ten times the levels seen just two years ago. On top of that, Ireland is the only EU country without any natural gas storage capacity. The Minister with responsibility for energy has not followed through on the publication of an assessment of the Southwest Kinsale Gas Field which was converted to an offshore storage facility with a storage capacity of 230 million cu. m for potential storage of natural gas.

On top of this, SSE Airtricity announced price increases to take place on 1 October, with electricity bills set to rise by over 35% and gas bills to increase by 39%. In layman's terms, it is costing the people over €1,000 for both oil and gas, over a 12-month period. These increases are unsustainable and frankly frightening.

With regard to prices, vulnerable constituents and energy poverty, my office is acutely aware that the exceptionally high wholesale gas price has led to the unprecedented increases in the electricity and retail gas prices faced by consumers. This has resulted in a significant increase in the number of people at risk of fuel poverty and will lead to hysteria if not actioned immediately.

I have had constituents calling me after being placed on the most expensive tariffs for electricity and gas, as more suppliers flee the Irish market. Panda Power, the latest victim of the energy crunch is understood to be on the verge of exiting the residential supply market, which has already seen three other suppliers pull the plug in this market. Panda has around 60,000 residential electricity and gas customers. When energy providers leave, their customers get transferred to other suppliers and are put on the most expensive standard tariffs. These are up to 30% higher than the best rates that can be obtained from energy providers by locking into an annual discounted contract.

Electricity prices are inflating, whether generated by natural gas or not. On those grounds, I, along with my colleagues in the Regional Group, request that the Minister with responsibility for energy, Deputy Eamon Ryan, secure EU-wide agreement at the upcoming European Council meeting of energy ministers for the immediate decoupling of the link between gas prices and electricity prices.

We also call on the Government to establish an energy support scheme for businesses. Emergency legislation needs to be introduced to ensure that electricity supply and prices are affordable for families and businesses this winter. Alongside the Regional Group Members, I propose that this legislation should incorporate a ban on any threat to turn off electricity supply to domestic customers, as well as any critical social infrastructure such as hospitals, nursing homes and schools.

It is more feasible to the everyday Joe Soap to pay a yearly gym membership, sometimes not even to go to the gym but, in fact, to use the washing and electrical facilities such as showers and hair driers to save on costs. A local gym owner contacted my office recently asking what can be done for small businesses to stay afloat this winter. Its bills have skyrocketed and it risks losing custom if it puts the membership price up.

We welcome the statement of the European Commission President, Ursula von der Leyen, yesterday which announced that the EU wants to introduce a cap on the revenues of companies that produce electricity at a low cost. It is wrong for them to receive extraordinary record profits and to benefit from war on the back of consumers. We also welcome the SME relief package proposed for doing business in Europe.

Comments

No comments

Log in or join to post a public comment.