Dáil debates

Wednesday, 12 October 2022

Electricity Costs (Domestic Electricity Accounts) Emergency Measures and Miscellaneous Provisions Bill 2022: Committee and Remaining Stages

 

6:57 pm

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

This amendment proposes to cover tenancy agreements which cover rent that includes electricity charges. The Department of the Environment, Climate and Communications has been in contact with the Department of Housing, Local Government and Heritage on this issue. As the scheme can only credit the domestic electricity account, I cannot accept this amendment.

For operational reasons, the scheme can only credit domestic electricity accounts and the majority of the approximately 300,000 tenants registered with the RTB are domestic electricity account holders. Others have tenancy agreements under which tenants pay their actual shares of each bill. In those cases tenants will benefit from the payment because the amount of the bill will be reduced by the payment. A small proportion of tenants have other arrangements in place where electricity costs are part of the rental cost. It is likely that some landlords have contracted tenancy agreements that undercharge for electricity. Energy costs have risen at an unexpectedly fast rate and are expected to be sustained rather than short-term. In such circumstances, it is therefore likely that the landlord will be absorbing the electricity price rises due to the constraints on annual rental increases.

With the support of the Department of Housing, Local Government and Heritage, the Department of the Environment, Climate and Communications is working closely with the RTB on a public information campaign to ensure that any tenants for whom electricity costs are not separate from overall rental cost are made aware of the scheme and their entitlements. These are expected to be a small minority of tenants. It should be said that to legally a require a landlord in those cases to pass on or transfer the electricity cost emergency benefit payment to his or her tenant would be unfair to the landlord who is liable to pay all the costs. Disputes relating to tenancies covered by the Residential Tenancies Acts 2004 to 2022, including any terms relating to electricity payments, can be referred to the RTB for dispute resolution. Section 78 of the Residential Tenancies Act 2004 describes a non-exhaustive list of matters or complaints that can be referred for RTB dispute resolution. I encourage tenants to examine their tenancy agreements, and, if appropriate, refer a dispute to the RTB for resolution.

The proposed amendment also appears to apply to living arrangements other than tenancies covered by the Residential Tenancies Acts 2004 to 2022. Some renters reside under a rent-a-room arrangement and I understand that the rent payable in some cases can also cover electricity. Again, the homeowner, similar to the landlord, is likely to be undercharging for electricity in some of these cases.

With regard to local authority tenants, to the best of my knowledge the standard practice in local authority tenancy agreements is for local authority tenants to set up their own electricity accounts and in instances where local authority tenants have set up an account in their name, they will receive the credit and the local authority will have no role. We have noted the case where there is Traveller-specific accommodation and multiple units are attached to one meter controlled by the local authority. We are continuing to liaise with the Department of Housing, Local Government and Heritage to find the best way to compensate those tenants. In rare cases there may be an exception to this, where management fees might be paid for apartments to include utilities. In these instances, should a dispute with the local authority arise, local authority tenants should raise the matter with their local authority in the first instance. The Ombudsman can examine complaints relating to local authorities.

While I cannot accept the amendment, my officials will continue to liaise with the Department of Housing, Local Government and Heritage on this matter. I understand officials in that Department are also keeping this matter under review. On that basis, I propose to reject the amendment.

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