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

The Government is aware of the growing pressures on families and businesses. The most immediate factor affecting electricity prices in Ireland has of course been the invasion of Ukraine. In response to rising electricity and gas prices in the EU, the European Commission has put in place a number of measures available to member states to mitigate the impact of the energy price rises on households and businesses. The Council of energy ministers, at their meeting on 30 September, agreed the Council regulation on an emergency intervention to address high energy prices. The Council regulation has three elements, the first of which is to introduce a cap on electricity market revenues for non-gas generators. That means wind farms and solar farms that are generating unfair profits from electricity because of the high price of gas. They will have to pay that money back to the State and it will be remitted to taxpayers. The second is a temporary solidarity contribution which is based on the profits of people who own fossil fuel production and refineries, who again are making unfair profits because the market price of gas has gone up. Third, the regulation introduces a requirement to reduce electricity demand over the winter period. I am delighted to see a significant drop in gas consumption across Europe. I know it is partly because of the weather but it has gone far beyond that. Industrial use of gas has dropped dramatically while industrial production has not fallen, showing it is possible to change. Intensive work is under way to implement these measures by the Department of the Environment, Climate and Communications working with Department of Finance and other Departments and agencies.

In terms of the overall cost of living it is vital to stress that a co-ordinated whole-of-government response is being followed and is essential in tackling this issue. The energy poverty action plan, which was approved by Government yesterday, sets out a range of measures already being implemented by a range of Departments and public bodies this winter, as well as key longer term measures to ensure those least able to afford increased energy costs are supported and protected.

As part of that plan, we are introducing a €10 million hardship fund as a further safeguard in addition to the existing sources of support for people having difficulty paying their energy bills, such as the supplier hardship funds or additional needs payment scheme that is run by the Department of Social Protection. The objective of this scheme is to be able to provide tailored help quickly to people who may not be able to access other sources of assistance. In fact, any customer who is in need of additional support may apply for an additional needs payment through his or her local Intreo office, including customers on a pay-as-you-go meter who have a need for financial assistance to facilitate their continued energy supply. Every effort will be made to ensure that vulnerable individuals in financial distress receive an additional needs payment on the same day or as soon as possible where it relates to electricity and heating expenses.

Furthermore, the plan will see the Minister, Deputy Ryan, expand the definition of vulnerable customers beyond medically vulnerable to include also financially vulnerable. This means financially vulnerable people will be able to avail of protections such as the longer winter moratorium on disconnections and the requirement on suppliers to place vulnerable customers on the most economically advantageous tariff.

In response to rising energy prices, the Government has already taken action throughout 2022. It introduced a suite of measures worth €2.4 billion to assist households with their energy costs. This includes the €1.2 billion energy costs emergency benefit scheme, under which a total of €600, including VAT, will be made to all domestic electricity accounts by April. The first payment has already been made and the second will start to appear on accounts from the start of January. The Government is also using supports like lump sum payments for fuel allowance recipients. That brings the total fuel allowance for this winter to €1,324. Along with the range of other cost of living payments, we are targeting help to those who need it most.

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, TBESS, which will provide up to €10,000 per business per month until spring 2023 to help meet 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, which consists of a set of allowances that help with the costs of running a household. It includes allowances towards covering electricity and 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 that an applicant is unable to meet from his or her own resources. The Economic and Social Research Institute, ESRI, found that the one-off measures announced as part of budget 2023 will insulate most households from rising prices this winter.

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