Niall Collins (Limerick County, Fianna Fail) | Oireachtas source

I thank the Deputies for raising these important matters and allowing us time to discuss them today. As noted previously, the Government is keenly aware of the growing pressures this places on families and businesses. Just like other European member states, Ireland is acutely feeling the effects of the current energy crisis. It is a matter of serious concern to Government that rising electricity and gas prices caused by international conditions are putting increased pressure on consumers. Protecting those in a more vulnerable economic position and at risk of energy poverty is a top priority.

Intensive work is now under way to implement the recent Council of the European Union regulation on an emergency intervention to address high energy prices, which includes a temporary revenue cap on electricity producers and a temporary solidarity contribution on excess profits from activities in the fossil fuel sector. The proceeds from this temporary solidarity contribution and the market cap will go towards financial supports to consumers heavily impacted by soaring energy prices.

In terms of the overall cost of living, a co-ordinated whole-of-government response is under way. This holistic approach is essential to tackling this issue. As previously outlined, the Government acted throughout 2022 in response to rising energy prices and introduced a suite of measures worth €2.4 billion to assist households in their energy costs. Budget 2023 provides a further €2.5 billion in one-off measures for households. Any major interference in the energy market would need to be carefully considered to avoid potentially disrupting a market that is already facing significant challenges, thereby exposing the Exchequer and, ultimately, the taxpayer to potentially unquantifiable costs.

In this regard, direct assistance to customers such as the domestic electricity payment and targeted measures like the fuel allowance are a better approach. As has been highlighted, Government has long provided and will continue to provide practical supports for those struggling with their energy costs. Government continues to allocate significant funding to these practical supports via the welfare system and through energy efficiency grants and retrofitting. Some of the details I wish to outline include the best long-term approaches for Ireland to insulate customers from volatility in international wholesale energy markets, which are to invest in energy efficiency and renewable energy, expand interconnection with European and neighbouring markets and deepen the internal market in energy.

In terms of the overall cost of living, it is vital to stress that a co-ordinated whole-of-government response is being followed, which is essential to tackling this 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 those least able to afford increased energy costs are supported and protected. This work is being undertaken by a steering group consisting of relevant Departments and agencies. This area of work also includes interactions with the NGO sector.

In response to rising energy prices, the Government has already taken action through 2022 and introduced a suite of measures worth € 2.4 billion to assist households in their energy costs. Throughout 2020, the Government has taken action in response to rising prices for a variety of measures, including the electricity costs emergency benefit payment, which saw 99% of domestic electricity accounts being credited with the electricity cost emergency benefit payments of €176, excluding VAT. The total cost of that scheme was €377 million. This was part of a €505 million package of measures that was put in place to address increased costs of living, which included increases in the fuel allowance and a reduction of VAT on electricity and gas bills from 13.5% to 9%. A €320 million measure was introduced to reduce excise duties on petrol, diesel and marked gas oil temporarily, which cut excise by 20 cent per litre on petrol and 15 cent per litre on diesel.

The Government has continued to take action. Budget 2023 provides a further €2.5 billion in one-off measures for households. The budget package includes a new electricity cost emergency benefit scheme, which this House passed last month and has now been signed into law by the President.

The scheme will credit €550.47 exclusive of VAT to each domestic electricity account in three payments in each of the following billing periods: November-December 2022, January-February 2023 and March-April 2023. The estimated cost of the scheme is €1.2 billion. The scheme will apply to domestic electricity accounts using their unique 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. Therefore the payments will help both bill-pay and pay-as-you-go customers with their electricity costs. The measures introduced under budget 2023 also include a €400 lump sum payment to fuel allowance recipients in addition to the payment of €33 per week for 28 weeks. That is a total of €924 each year. There is a €200 lump sum payment for pensioners and people with a disability getting the living alone increase; a €500 cost-of-living lump sum payment to all families getting a working family payment; a double payment of child benefit to support all families with children; a €500 cost-of-living payment for people receiving a carer's support grant, which will be paid in November; a €500 lump sum cost-of-living disability support grant to be paid to all people receiving a long-term disability payment; and a €500 rent tax credit to tenants. Budget 2023 also increased the total allocation to the SEAI by 36%, up to €480 million.

The Government is acutely aware of the importance of protecting jobs in order to protect families during this energy crisis. This has been key in the design of the new temporary business energy support scheme, which will provide up to €10,000 per business per month until spring 2023 to help with rising energy costs. The scheme will support eligible companies, covering 40% of the increase in their energy bills. These measures are in addition to Government supports such as the household benefits package, a set of allowances which help with the cost of running a household. This includes allowances towards covering electricity or gas costs and 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 one-off cost which an applicant is unable to meet from his or her own resources. The ESRI has found that the one-off measures announced as part of budget 2023 would insulate most households from rising prices this winter.

As I have outlined, the Government has long provided and will continue to provide practical supports for those struggling with their energy costs. The Government continues to allocate significant funding to these practical supports via the welfare system and through the energy efficiency grants.

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