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

I thank the Deputies for raising these important matters and allowing us time to discuss them. I appreciate their concern, which is all of our concern. There is no monopoly in the House or within any party when it comes to care for our people. We all share that. The unprecedented rise in prices and what that may do to leave people in a position where they cannot pay their electricity bills and potentially face disconnection is an issue for all of us. Clearly, the current situation we are witnessing in respect of significant increases in energy bills and the cost of living is a matter of serious concern. The Government is keenly aware of the ongoing pressures this is placing on families and businesses and that is why a €2.4 billion package of supports was implemented earlier this year and a package of once-off measures worth €2.5 billion was included in the most recent budget.

I wish to outline further global market developments that have affected these high Irish energy prices, which are the source of the problem. I will outline what the Government is doing in providing significant supports for householders' energy costs, both through energy-efficiency and welfare supports, and then I will set out the functions of the regulator, the CRU, in respect of these matters, including its critical responsibilities for consumer protection.

The increased cost of energy is an issue that is affecting not just Ireland but all EU member states. Increased international gas prices as a result of the Russian invasion of Ukraine have had a serious knock-on effect on the market. Domestic retail electricity prices and gas prices are now more than 80% higher than they were a year ago. It is a matter of serious concern to the Government and to every Member that rising electricity and gas prices caused by these international conditions are putting increased pressure on consumers, particularly those in a more vulnerable economic position and at risk of energy poverty. That is why I have been meeting with electricity and gas suppliers in recent weeks to convey a clear message in respect of the critical importance of doing everything we can to support financially vulnerable consumers through this time. In response to rising electricity and gas prices in the European Union, the Commission has put in place a number of measures available to member states to mitigate the impact of those high prices on households and business. The Council of energy ministers agreed a Council regulation on an emergency intervention to address these high prices at our meeting on 30 September. The new EU emergency market intervention regulation consists of three main measures.

The first is exceptional electricity demand reduction. A mandatory 5% cut in electricity consumption during peak hours is being required. This will require member states to identify the 10% of hours with the highest expected price and to take appropriate action to reduce demand during those hours. The overall target is a 10% cut in total electricity demand until 31 March 2023 and the real benefit is that it lowers prices for all consumers.

Second, a temporary revenue cap on inframarginal electricity producers has been agreed. Power generation technologies with lower generation costs than natural gas, including renewables, nuclear and lignite, will have their revenues capped. The surplus revenues will be collected by member states and used again to help reduce energy consumers’ bills. There will also be a temporary solidarity contribution on excess profits generated from activities in the fossil fuel sector. These two measures, we believe, can raise up to €2 billion, depending on what the price of energy is, which again we can use to help protect our consumers. That is what we are doing.

Member states also agreed to set a mandatory temporary solidarity contribution on the profits of business activities in this crude oil and petroleum natural gas sector. We will use those proceeds, as I said, to help consumers and intensive work is now underway to implement these measures.

The best long-term approach for Ireland is also to insulate consumers from volatility on international wholesale energy markets by investing in energy efficiency and renewable energy, expanding the interconnection with the European neighbourhood markets and to deepen the Internal Market in energy.

On the overall cost of living, it is vital to stress that a co-ordinated whole-of-government approach is being followed and is essential in tackling the issue. The forthcoming energy poverty action plan will set out a range of measures to be implemented this winter, as well as key longer-term measures to ensure that those least able to afford increased energy costs are supported and protected. This work is being undertaken by a steering group consisting of relevant Government Departments and agencies. Their work also includes interaction with the NGO sector which has real expertise in this area.

In response to rising energy prices, the Government has already taken action throughout this year. As I said earlier, it introduced measures worth €2.4 billion to assist householders with their energy costs, and a further €2.5 billion in the recent budget. The budget package includes a new electricity cost emergency benefit scheme which this House passed in the past week and is now being signed into law by the President.

The scheme will credit €550.47, exclusive of VAT, to each domestic electricity account in three payments of €183.49 in each of the following billing periods: early November, January to February 2023 and March to April 2023. The estimated cost, which was approved by the Oireachtas committee today in our Supplementary Estimate, is €1.211 billion. The scheme will apply to domestic electricity accounts using their unique meter point reference number, MPRN, to allow the payment to be credited to individual bills automatically, without the need for application or approval, including pay-as-you-go meters. The payments will therefore help both Bill Pay and pay-as-you-go customers with their electricity costs.

The measures introduced in budget 2023 also include a €400 lump sum to fuel allowance recipients, in addition to the payment of €33 per week for 28 weeks, which is a total of €924 each year.

There is a €200 lump sum payment for pensioners and people with disability who receive the living alone allowance. There is also a €500 cost-of-living lump sum payment to all families receiving the working family payment.

There is then the double payment of child benefit to support all families with children, together with a €500 cost-of-living payment for people receiving the carers’ support grant which will be paid in November.

A further €500 lump sum cost-of-living disability support grant is to be paid to all people receiving a long-term disability payment.

There is also a €500 rent tax credit to those tenants who are in their own accommodation.

These measures are in addition to Government supports such as the household benefits package, which consists of a set of allowances which help with the costs of running a household. These include allowances towards covering electricity or gas costs where recipients are paid €35 per month.

Under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances. Exceptional needs payments can be made to help meet an essential once-off cost where an applicant is unable to meet it from his or her own resources.

Throughout this year the Government has taken action in response to these crises. The electricity cost emergency benefit payment, which saw 99% of domestic electricity accounts being credited with the payments I mentioned earlier, came at a cost already of €377. This was part of a €505 million package of measures put in place to address the increasing costs of living, including increases in fuel allowance. There is a further reduction in VAT on electricity and gas bills from 13.5% to 9% and a €320 million measure was introduced to reduce excise duties temporarily on petrol.

As part of its statutory role, the CRU has consumer protection functions which include, for example, developing codes of practice and setting out consumer rights which are set out in the suppliers' handbook. This includes ensuring compliance with the obligation on suppliers set out in the handbook.

As part of Responses 6 and 7 under the National Energy Security Framework, the CRU has strengthened consumer protection measures, including an extension of moratoriums on disconnections which will be extended for all domestic customers from 1 December 2022 until 28 February 2023, and for vulnerable customers from 1 October 2022 to 31 March 2023. There will be extended debt repayment periods. From 1 November, debt repayment periods will be extended to allow a minimum of 24 months for customers to repay debt and customers can pay debt more quickly, if that is what they prefer.

There will be a reduced debt burden on pay-as-you-go top-ups. New measures will mean that the debt repayment levels will reduce to 10% from the previous 25% on pay-as-you-go customer top-up payments. On a €20 top-up, for example, only €2 will go towards debt repayment if it exists, rather than the €5 previously.

Better value for those in financial hardship meters will also be introduced. All customers with a financial hardship meter will be placed on the lowest cost tariff. This includes a tariff which might otherwise be available, for example, for a new customer or on a retention offer. The customer in financial hardship must be placed on whichever tariff is the cheapest tariff available from 1 December.

There will also be the promotion of a vulnerable customer register and additional plans for suppliers. I regret that I do not have time to list the full range of measures but this Government is completely committed to help our most stressed consumers through this energy crisis. We will do that through these and other measures to be introduced in the coming weeks.

See this speech in context