Frank Feighan (Sligo-Leitrim, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter. The Government is supportive of district heating because it contributes to the diversification of the fuel supply for heat and decarbonising the heat sector. Across Europe, the term "district heating" is generally applied to networks that serve neighbourhoods, towns or cities and cover a mixture of customers including public buildings, industrial and commercial sites and residential units. District heating networks can offer flexibility in fuel choice and the ability to adapt to changes in the economic and policy landscapes. They may see different combinations of energy resources used at different times during the lifetime of district heating network. District heating networks also offer the potential to expand the use of renewable energy sources and to assist with meeting decarbonisation goals. Group heating schemes are smaller scale operations that generally supply an apartment block or housing estate, as the Deputy outlined. In general, these schemes are supplied by natural gas purchased at a commercial rate by the energy system operator. Customers are supplied with heat, the sale of which is not currently regulated.

The district heating steering group was established under the Climate Action Plan 2021 to ensure structured development of district heating. Analysis of the regulatory needs of the district heating sector has been undertaken by the economic and consumer protection working group working reporting to the district heating steering group. As part of that analysis, the issue of group heating schemes has been considered and further consideration will be given to including group heating schemes within a consumer protection framework. Under SI 350 of 2022, which transposed the 2018 renewable energy directive, the Commission for the Regulation of Utilities, CRU, has been appointed as regulator of district heating networks and will need to develop an extensive programme of work to consult upon and develop the regulatory regime. It is expected this work will commence following the submission of the district heating steering group report to the Government.

The Sustainable Energy Authority of Ireland, SEAI, has initiated a programme of pilot feasibility studies to examine the technical potential of moving group heating schemes that are fuelled by natural gas to renewable energy sources. The initial results of this work are expected to be available in the new year. More broadly, to help to alleviate the impact of the rising costs of living, the Government has put in place a series of measures and has made funding of €2.4 billion available. Further once-off measures worth €2.5 billion were announced in budget 2023, including the electricity costs emergency benefit. Primary and secondary enabling legislation has been put in place, with the first of three €200 electricity credits, inclusive of VAT, being paid to more than 2.2 million domestic electricity accounts from November 2022. While not all consumers use gas, electricity is supplied to all households, ensuring that this is a universal benefit.

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