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

These are environmental, technical and financial. The countermotion also notes that broader energy policy or energy security considerations have no bearing on the regulatory process. To answer Deputy McGrath's question, I expect it shortly, within the coming weeks.

The countermotion notes that the Department does not publish information on individual applications while they are under consideration. It would be inappropriate for me or the Department, from both a legal and regulatory perspective, and would offend due process, to comment on the specific detail regarding any individual licences or applications pending a formal decision being made.

The EU's Council of Energy Ministers met on 9 September and addressed the extraordinary situation of energy prices in the Union and emergency measures to mitigate current high prices and support demand reduction for electricity to strengthen the EU's winter preparedness. The Commission has proposed a number of short-term exceptional emergency measures, which are under urgent negotiation by member states, including proposals to reduce electricity demand across the EU, capping the revenues of inframarginal electricity producers and the introduction of a solidarity contribution from fossil fuel companies to be used to mitigate the impact of high energy prices on consumers. We support the threefold approach being taken in the regulation to: remove excess rents being earned by non-gas electricity production; reduce electricity demand; and to apply a solidarity payment from the producers of oil and gas.

Nationally, the NESF, which was approved in April last, sets out Ireland's response to our energy security needs in the context of the invasion on our national circumstances. In regard to the security of oil supply, the short- to medium-term oil supply outlook has stabilised somewhat, with a slow reduction in the international price of oil. The National Oil Reserves Agency, NORA, currently holds approximately 85 days of oil stocks, the overwhelming majority of which is in the form of physical product, with 85% being stored on the island of Ireland.

With regard to the gas security of supply, we all know that gas supplies from Russia to Europe have been severely reduced over the past year and continue to be the main cause of our energy problems. This has resulted in natural gas prices that are approximately ten times those seen just two years ago. The continued supply of natural gas to Ireland has not, to date, been reduced or interrupted as a result of the war. The UK, from where 75% of our gas comes, is at a strategic advantage compared to other European countries with a diverse source of gas supplies. The European Council recently agreed a regulation on reducing gas demand by 15% this winter. This regulation requires all member states to put in place a demand reduction plan. As Ireland is not directly interconnected to another member state, it is not required to meet the mandatory reduction target in this regulation. Preparations are however under way to put the voluntary demand reduction plan in place.

With regard to the secure supply of electricity, the Commission for Regulation of Utilities, CRU, is managing a programme of work to address challenges to the security of electricity supplies in Ireland, with the support of EirGrid and my Department. Specifically, for this winter a range of measures has been undertaken. A large amount of maintenance work has taken place over the summer to ensure our generation fleet is adequately prepared for the winter ahead. We are working with large-scale energy users, which have significant quantities of backup generation, to access them at times of system stress. There has been work on the optimisation of grid batteries, the number of which is growing, to provide greater service during times of stress. There have also been enhanced demand-side responses through a number of measures at domestic and industrial scale. Furthermore, I welcome that the CRU is reviewing the capacity remuneration mechanism to make sure it is fit for purpose. In carrying out this review, it is vital that we support the projects that have been awarded contracts under the existing mechanism and that planned capacity auctions continue to deliver.

With regard to our medium- to long-term energy security, the Department's current review of security of energy supply sets out the forecast to the period to 2030. In the context of a sustainable transition to net-zero emissions by 2050, we must consider potential risks to both our natural gas and electricity supplies and examine a range of measures to mitigate these risks, including the need for additional capacity to import energy, reduce energy use, provide energy storage and encourage fuel diversification and renewable gases such as biomethane and hydrogen.

A set of recommendations will be brought to the Government for consideration once the review is completed.

The price vulnerability that households and businesses face at the moment is at the core of the concerns we all share. Members will be acutely aware of the unprecedented increases in prices we are seeing. Recent estimates from the Economic and Social Research Institute, ESRI, indicate that 29.4% of households are now spending more than 10% of their income on their home energy needs. The Government is keenly aware of the pressure on households facing these bills and has already implemented a €2.4 billion package of measures to support energy customers, which includes electricity cost credits, a reduction in VAT and an increase in the fuel allowance. We have greatly enhanced the home retrofit supports available to households, with the number of free energy upgrades for households at risk of energy poverty delivered each month more than double what was seen last year. A new 80% grant support for cavity wall and attic insulation was introduced as a response to the exceptionally high energy prices. These supports are the key response and will help to protect householders in the short and long term.

However, we recognise that more needs to be done as prices continue to increase. Additional measures to support households and businesses are being examined in the context of the upcoming budget. I very much welcome the recent announcement by the Commission for Regulation of Utilities, CRU, as set out by its representatives at the Oireachtas committee yesterday, of a range of additional consumer protections under the national energy security framework. This is the way we are working to help to protect our people. We are providing assistance and making sure nobody, particularly those at risk of energy, is left without power. We are working to make sure we get through this wartime situation while defending our people.

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