Peter Fitzpatrick (Louth, Independent) | Oireachtas source

Irish households are facing into the biggest cost-of-living squeeze in nearly four decades in the middle of another significant jump in the official inflation rate. The Economic and Social Research Institute, ESRI, estimates that the share of households experiencing energy poverty increased from a level of 13% in 2015 and 2016 to 29% in mid-2022, with potentially more than 50% of all households considered to be at risk of energy poverty by the end of the winter.

With regard to the electricity credit announced in the budget, I acknowledge that it will go some way towards helping families struggling to keep up with rocketing energy prices. However, without a price cap the average energy bills will continue to rise, with some families stating it is like paying a second mortgage or double rent. In December 2021, the Government approved the original electricity credit scheme to credit all domestic electricity accounts. Payments were made to more than 2.1 million domestic electricity accounts through April, May and June. They were made automatically and without the need for an application. The scheme was operated by ESB Networks, the electricity distribution system operator, and electricity suppliers, with the oversight of the CRU. Using MPRNs, ESB Networks calculated the number of domestic electricity accounts and notified the Minister for the Environment, Climate and Communications, which subsequently transferred moneys for the scheme to ESB Networks. Suppliers then credited each domestic electricity account held with it on the effective date with the electricity costs emergency benefit payment over the following billing cycle. I acknowledge that this measure and existing infrastructure is a huge help for most households, but not all.

The ESB and Electric Ireland told an Oireachtas committee last week that 125,000 customers are currently behind on their bills, up from 100,000 during the pandemic, and we are only in the autumn. What will happen when the cold weather really sets in and there is an essential need for heat in the home? This is catastrophic and causing major concern for most homes and businesses. The Government needs to engage further with the CRU and the energy companies on this to ensure that the most vulnerable will not be cut off this winter.

On people on pay-as-you-go energy meters, how are emergency payments going to be paid to those vulnerable citizens when the metering system cannot provide the data to identify these people? What are they going to do? There are approximately 346,000 households with prepaid electricity meters but because you cannot see when a pay-as-you-go customer's meter is running out, getting payments to these people quickly is a challenge. Although I acknowledge there is a €3 million hardship fund to help households top up their energy meters, administered by the Money Advice & Budgeting Service, MABS, and St. Vincent de Paul, this protective measure is insufficient. What protections are in place for customers on prepay meters? The Taoiseach affirmed that no vulnerable person will be disconnected this winter but there is evidently a mismatch between his definition of vulnerable, and that of the CRU, which characterises the vulnerable as having certain specific medical conditions. I would ask for clarity on this today.

With the definition of vulnerability in mind, I have a constituent who raised the issue of one electricity meter covering two dwellings; one home and one independent granny flat, where the inhabitant is in receipt of palliative care. The inhabitant in receipt of palliative care is deemed vulnerable and requires significant electricity use. One electricity meter covering two dwellings impacts both houses' entitlements to the electricity credit respectively. However, it costs approximately €4,000 to install an additional meter, which is not feasible amid the cost-of-living crisis. These dwellings are inhabited and maintained independently and the only combining aspect is the single meter. The Government needs to bring in the necessary legislation to grant eligibility of electricity credits to independent dwellings or granny flats that share one meter.

Similarly, the requirement of the use of the MPRN as the identifier within the first electricity credit scheme resulted in certain cohorts not being able to access the payment. A particular cohort identified includes approximately 1,000 Traveller households in certain local authority accommodation, where the MPRN is registered to the local authority and supplies multiple households. Additionally, while the vast majority of people who rent their homes have their own individual MPRNs, there is a small cohort of people whose landlords hold the MPRNs and the energy costs are subsequently paid to the landlord by the tenant. I refer to the reality of rural Ireland.

Those vulnerable groups need support, which was not provided for under the first electricity scheme.

Let us not forget the electricity businesses that are swiftly exiting the Irish market. I have had constituents calling me after being placed on the most expensive tariffs for electricity and gas as more and more suppliers flee the Irish market. When energy providers leave, their customers get transferred to other suppliers and are put on the most expensive standard tariffs. These are higher than the best rates that can be obtained from energy providers by locking into an annual discounted contract. For example, I had a local school principal in County Louth contact me regarding the school's spiralling electricity bills. On top of this, its electricity contract is due to expire and will revert to standard charges, which, as we know, have risen by 65%. This process is flawed.

These are examples of existing challenges that need to be assessed and incorporated into this Bill and the new scheme to ensure help is provided to those who most need it. It is imperative we do not compromise on people's health and safety. Legislation should incorporate a ban on any threat to turn off electricity supply to domestic customers and any critical social infrastructure, such as hospitals, nursing homes and schools.

In June, the Government enacted legislation and approved capital funding to support EirGrid's role in expediting the delivery of temporary generation capacity. However, the national grid has come under increasing pressure since the start of the decade, with a spike in the number of amber alerts. This requires immediate attention from the Government. It is all well and good throwing money at people under this second electricity scheme but there is a heightened need for the immediate decoupling of the link between gas prices and electricity prices. Electricity prices are inflating, whether generated by natural gas or not. On those grounds, I request that the Minister, Deputy Eamon Ryan, continue to assert his efforts in securing EU-wide agreement on the decoupling of the link between gas prices and electricity prices. In addition, are there any updates on the EU energy plan figures with regard to using EU windfall levies on oil and gas companies, the profits of which have risen along with skyrocketing prices?

The Government had an opportunity in the budget to address the electricity crisis facing ordinary people in this period and in the future but it refused to put a cap on electricity prices. While that is disappointing in the long term, I acknowledge the new scheme will help people this winter. Let us be clear. Whatever needs to be done now to keep the lights on for families this winter must be done as a matter of urgency. If a family is forced to freeze as a result of mounting electricity bills, the Government has failed. It must be remembered that behind every MPRN or, in some cases, lack thereof, are people, many of whom are in a difficult place. We must look after them and ensure they have a proper Christmas. They have been forced to make very difficult decisions based on income and human needs. Quality of life means so much and people are struggling every week. I offer my full support to the many great constituents and businesses in Louth and east Meath that have made great sacrifices over the past three years. We must support them now and do so urgently.

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