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

I thank Deputies for their engagement on this crucially important issue. The passion behind the contributions is a reminder of how important it is that we have an affordable supply of energy for the economic as well as social well-being of our people. The Minister, Deputy Eamon Ryan, made it clear that the scale of the measures introduced by the Government in 2023 totalled €2.5 billion, which includes the €1.2 billion electricity cost benefit scheme, which we legislated for last week, but action does not stop there. There is a great deal of additional work under way in the Department of the Environment, Climate and Communications and across various State bodies. A significant element of this work is driven by the active response of the European Commission to impacts on the energy sector arising from Russia's invasion of Ukraine.

On 18 May, the Commission published the REPowerEU plan. It focuses on diversification of energy imports, energy savings and accelerating clean energy deployment. As we have outlined, this has created the framework within which we are now working to introduce not only a windfall tax, but also a solidarity payment to ensure an equitable contribution by all players to the unprecedented situation we all find ourselves in. One can distinguish between the windfall tax and the solidarity payment on the basis that one is a tax on those who have fossil fuel deposits and make money from them and the other is a tax on those who are benefiting unfairly from the high price of gas, although they are generating electricity from something which does not have the same costs attached, such as wind power.

We also need to galvanise the efforts of all citizens to reduce the amount of energy we use. A great deal of work is already happening on this, with the Reduce Your Use campaign. This includes mandatory requirements on the public sector to lead by example and reduce its energy use. Of course, not everybody can reduce their energy use and we must support those people who are not using enough energy because they are afraid they will not be able to pay for it. A number of Deputies brought forward stories of that happening among their constituents.

The Minister, Deputy Eamon Ryan, is going to bring forward an energy poverty action plan in the coming weeks, which will build on the important work done under the previous strategy to combat energy poverty. Critically, it will capture the whole-of-government effort needed to support people in or at risk of energy poverty.

The Minister and I are very much aware of the situation regarding Traveller families and their access to the benefits of this scheme. I want to reiterate that the Department of the Environment, Climate and Communications is working on this issue and arrangements will be put in place as soon as possible as the Government has approved funding for this action.

The Government is also fully aware of the pressures on businesses, and that is why the temporary business energy support scheme is being introduced to protect businesses and families. The legislation to establish this scheme will be brought forward as part of the finance Bill. It is estimated that the scheme will cost €1.2 billion. It will be administered by the Revenue Commissioners and operate on a self-assessment basis.

9 o’clock

Businesses that are eligible will receive 40% of the increase that they have seen in their electricity and gas costs up to a monthly cap of €10,000.

Behind all of that, however, there is always more work to be done on improving communications on the benefits to which people are entitled and the supports that are available to them. The Department of the Minister is working closely across Government and with NGOs to make this an integral part of the Reduce Your Use campaign.

While all this urgent work on measures that will have a real impact in the shorter term is essential, we must not lose sight of the bigger picture. I cannot overstress that the best way to protect ourselves from the impact of international fossil fuel prices is to reduce dependence on fossil fuels. As we transition away from fossil fuels and progressively decarbonise, we have to ensure that the way we decarbonise captures this unique opportunity to improve life for all of use in the long term.

Making our homes energy efficient and no longer reliant on fossil fuels will not just mean that they are warmer, healthier and cheaper to run, it also means that we are taking concrete action on social deprivation that is sustainable and enduring. A total of €244 million has been allocated for Sustainable Energy Authority of Ireland, SEAI, residential and community retrofit schemes and the solar photovoltaic, PV, scheme in 2022. Some €118 million of this amount has been allocated to energy-poverty schemes.

More than 4,500 homes will benefit from the free upgrades targeted at those in energy poverty this year and, on top of that, €85 million funding has been provided by the Minister for Housing, Local Government and Heritage for the local authority energy efficiency retrofit programme for this year and another €87 million for next year. This means that of the total Government retrofit budget allocation of €329 million, approximately 60%, or €203 million, has been allocated to dedicated energy-poverty schemes and local authority retrofits this year.

Budget 2023 has provided €337 million for SEAI residential and community energy upgrade schemes, including the solar PV scheme for medically vulnerable electricity customers. Some €291 million of this allocation comes from carbon tax revenue. This is the highest-ever allocation for these schemes. This will facilitate the delivery of energy upgrades to 37,000 homes, including 6,000 free upgrades to those in energy poverty. A further €87 million has been allocated for the local authority retrofit programme for next year. The overall allocation of €8 billion for residential retrofit to 2030 demonstrates the Government's commitment to the vision.

I wish to say something about vulnerable customers and those on pay-as-you-go meters. No vulnerable customer should stay on a pay-as-you-go meter. People can register as vulnerable with their supplier and there is no charge to move from a pay-as-you-go meter to bill pay for electricity. The CRU has also removed the €200 charge that was in place for moving from a gas pay-as-you-go meter to bill pay and that is also free.

The Minister discussed the full range of supports that suppliers have in place for their customers including hardship funds. These funds are put in place by suppliers at their own initiative in addition to their regulatory obligations. In speaking to them, I understand that there was a low take-up of hardship funds. Payments are made to customers on a discretionary basis by the networks. I understand that MABS is involved in administration of a number of these funds. I thank the Deputies for their contributions.

See this speech in context