Dáil debates

Tuesday, 11 October 2022

Electricity Costs (Domestic Electricity Accounts) Emergency Measures and Miscellaneous Provisions Bill 2022: Second Stage (Resumed)

 

7:45 pm

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I heard the Minister of State outline some of the specific measures taken in the budget to help alleviate the cost of living and increased energy costs for some people and specific sectors. Those were very welcome but they were the targeted measures. Tonight we are looking at universal measures, or the safety net for the general public. All the payments we are speaking of tonight are welcome but they fall far short of what is needed. That is the case for those who are on low or middle incomes and for family carers, for example, 75% of whom do not get the carer's allowance. One of the things I was hugely disappointed about in the budget was the fact that the carer's allowance is still not a qualifying payment for the fuel allowance. However, that is for another day.

There has been a lot of discussion about a cap on electricity prices. I am not convinced that a cap on electricity prices at the amount of last year's bills is a good solution because it would do nothing to incentivise cutting back on energy usage. In fact, it might be a recipe for a greater threat of blackouts. Crucially, those on bigger incomes and with bigger homes would benefit on the double. Their bills would be static, which would be a big saving, but because they have larger homes, they could freely use more electricity and more energy and they would not pay an extra cent for it. It would also mean writing a blank cheque for large energy companies. All in all, I am not convinced that the best way to support those who really need help is by putting a cap on their electricity bills.

I am of the view that the Bill does not go far enough, but the Government still has time to amend it. People have already been hit with huge hikes in their electricity bills, yet the first payment under this legislation will not kick in until December. What about the massive bills people got in August, September and October? They will get similar bills in November also. How will those be paid by the carers about whom I spoke, those on low and middle incomes and those who do not have €10 left over at the end of the week? An extra €150 or €200 hike in their electricity bills is like a mountain to climb. Before they get their first payment to help cover the increase in the November-December bill, they will already be in debt. People who have always paid their bills on time are struggling.

We should ensure a single €400 electricity credit before Christmas and the two €200 credits afterwards. This would mean that many families would not be facing into Christmas already saddled with bills they cannot pay in their entirety. We risk people running into arrears and going to moneylenders just to keep the lights on and their homes heated. A double payment before Christmas would be a big help. It would allow people to breathe and not be worn down by the worry of unpaid bills before Christmas without having to worry about what will come afterwards.

People who do not need these payments will receive them because they are universal but is there any way the owners of holiday homes might not receive a €600 payment for each holiday home? There are over 60,000 such homes in Ireland. That saving alone would go a long way towards financing the proposed initial €400 electricity credit to which I am referring. Perhaps the Minister of State might clarify whether somebody who is renting a second home on Airbnb and charging well for it will receive these energy credits. If they do, the Government has had a long time to prepare this legislation and knew it was coming. It is not good enough that all of those people will be able to get the benefit about which we are speaking.

Many Deputies have spoken about the standing charge. Could the Minister of State explain matters to me because I do not know what is happening. A standing charge is meant to reflect the actual or fixed cost of providing the electricity in the first place. We urgently need to refer the savage increases in standing charges to the energy regulator. Certain providers have pushed up the standing charges for residential customers by more than €300 in some instances. As a result, the Government's €200 electricity credit before Christmas will not even cover the increase in the standing charge for some people let alone help with the increased cost of their electricity.

I know that the Bill is not about support for businesses, but I want to add my voice to those who are calling for an immediate support package for businesses. So many small businesses and retailers and people in so many different sectors are really in a bad way. The Minister of State must know it because he must receive the same emails I receive. Costs for many of these smaller retailers, particularly small supermarkets with delicatessens and stocks of frozen food, cold drinks, etc., have gone through the roof and are eating into their working capital. Many of them have gone right through it. They have nothing left to pay their huge bills and their businesses are on a knife edge. They are not looking at investing in solar panels. They do not have the capital up front to install them and in truth, many do not have the heart to install them because they are concerned that they will not have a business after Christmas.

Domestic customers see their electricity bills skyrocketing and their standing charges increasing for no reason they can fathom. They have been given no reason as to why this is happening. They see the obscene profits of energy companies and what do they see for themselves? They see one €200 electricity credit before Christmas. It is just not enough. It will leave very many people in debt and some in despair before Christmas. I ask the Minister of State to double that credit to €400. It really would help.

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