Peter Fitzpatrick (Louth, Independent) | Oireachtas source

I welcome the opportunity to speak on this essential Bill, the Electricity Costs (Emergency Measures) Domestic Accounts Bill 2023. I will support its progress today.

Last year, the war between Ukraine and Russia generated a sharp increase in energy prices for gas and electricity and significant volatility in the energy markets. Latest figures from the Central Statistics Office, CSO, show that wholesale electricity prices increased by 4.8% between August and September of this year, but prices were 60.6% lower in September 2023 than in September 2022. This indicates that energy providers are passing falling prices on to customers, with price reductions of between 9.5% and 30% in recent months. This is a good sign. However, 50 years after the 1973 Arab oil embargo, the current war in the Middle East has the potential to disrupt global oil supplies and push prices higher. According to the International Energy Agency, IEA, oil markets are already stretched by cutbacks in oil production from Saudi Arabia and Russia and expected stronger demand from China. Developing countries that import oil and other fuels will be the most affected.

Last week, the Council of the EU reached agreement on a proposal to amend the EU's electricity market design. This aims to shield consumers across the EU from price spikes, accelerate the deployment of renewable energies and improve consumer protection. While I welcome this progressive step forward, it is a long-term process and negotiations will need to be entered into before legislation is finalised. Therefore, the Government must concentrate on managing supply and demand, and must protect vulnerable users in the coming months via the energy credits scheme.

I acknowledge that the electricity credits announced in the budget will go some way towards helping families that are struggling to keep up with energy bills. The existing infrastructure is a huge help for the implementation of payments to most households, but not all. The requirement of the use of the MPRN as the identifier within both previous electricity credit schemes excluded certain cohorts. Approximately 1,000 Traveller households in certain local authority accommodation, where the MPRN is registered to the local authority and supplies multiple households, could not access the payment. This is also a reality in rural Ireland. For example, because of housing shortages, it is common for adult children and their families to live with their parents - together but separate - with one group living in a granny flat, for example. One electricity meter covering two dwellings previously impacted both households' entitlements to obtain the electricity credit. The announcement in the budget that complementary measures will be established to support Traveller households is welcome as I have already received numerous calls from my constituents in Louth.

The Department of the Environment, Climate and Communications intends to establish a sub-meter support scheme to ensure that in cases in which electricity is supplied through sub-meters to forms of accommodation such as independent dwellings or granny flats, residents will receive the same level of support as those who possess an individual MPRN. While these advancements in the scheme are welcome, I would like to question the estimated timeframe of the implementation and delivery of these new measures. Will they be in effect before the first energy credit payment, which is due to be processed on 1 December?

I wish to make clear that whatever needs to be done now to keep the lights on for families this winter must be done as a matter of urgency. It is imperative that we do not compromise on people’s health and safety. Legislation should be updated and these schemes should be ironed out and implemented immediately. Legislation should incorporate a ban on any threat to turn off electricity supply to businesses. Those in the hospitality sector who will incur increased VAT charges and wage increases must be helped. They barely survived through Covid and are now being hit with significant cost increases. Critical social infrastructure such as hospitals, nursing homes and schools should also get a guarantee that electricity supplies will not be turned off.

With regard to vulnerable constituents and energy poverty, my office is acutely aware that last year's exceptionally high wholesale gas prices have led to unprecedented increases in the electricity and retail gas prices faced by consumers. This has resulted in a significant increase in the number of people being forced to make very difficult decisions based on income and on human needs. Quality of life means so much and people are struggling every week.

With that said, I back the progression of this Bill. No additional delays should be imposed. We need to ensure this legislation is fit for purpose, successfully progresses through the next Stages and is enacted as quickly as possible to assist all constituents coming into the winter months.

The biggest problem I see in my constituency is people being fearful. They do not know how much it will cost to boil a kettle, to put on the microwave or to heat their homes until the bills come. The main word I hear is "fear". I welcome the three payments of electricity credits, but there is a fear factor among people and that is the biggest problem.

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