Alan Dillon (Mayo, Fine Gael)

I thank all the Deputies for raising these important matters and allowing time to discuss them. I also welcome the opportunity to discuss the pressures Irish householders are facing as a result of high energy costs and the actions the Government is taking in response.

The pressures placed on households and businesses by high energy costs remain a deep concern for the Government. Providing supports to alleviate these pressures remains a top priority. Extensive work has and will continue to be undertaken right across government to address these challenges. The programme for Government acknowledges these pressures and commits to bringing forward measures to help contain these costs. Ireland faces particular challenges in relation to energy costs as a result of long-standing factors, including our isolated island location, low levels of interconnection, our widely dispersed population and our historical reliance on fossil fuels. In particular, our reliance on gas for electricity generation is a major determinant of higher energy prices. Many Deputies failed to acknowledge that the electricity and gas retail markets in Ireland operate under a European regulatory framework and prices are set by suppliers as commercial decisions. However, the Minister, Deputy Darragh O'Brien, has written to all the energy suppliers and will meet them shortly in regard to the increased prices over the past number of weeks.

Ultimately, as a Government, the best long-term approach for Ireland is to insulate consumers from volatility on international wholesale energy markets. That will continue to be our prime objective through investing in renewable energy generation, improving our energy efficiency, expanding electricity interconnection with neighbouring markets and deepening the internal market in energy. The climate action plan sets out the strategy that is in place to achieve these goals, which support our decarbonisation and climate objective. Cutting our dependence on fossil fuels and generating power from our own renewable sources will ensure a cleaner, cheaper energy future in the long term.

The Government has also committed to continuing with the carbon tax in alignment with recommendations from scientific experts and the Climate Change Advisory Council. This approach encourages a shift away from fossil fuels and ensures those who are most vulnerable receive targeted supports, making that transition to a sustainable future fair and equitable. It is supported by research findings, including an ESRI study finding that recycling revenue raised through carbon taxation would result in a reduction in poverty and leave lower income households better off. Since 2019, we have seen increases in carbon tax that have been ring-fenced so that they go back into the pockets of those on the lowest incomes and are also used to protect the most vulnerable households and communities. These revenues provide vital funding to support those at risk of energy poverty, as well as retrofitting programmes and agri-environmental supports for farmers. In budget 2025, an allocation of €951 million in carbon tax revenue was provided to a range of programmes supporting Ireland's transition to a low-carbon economy. This was an increase of over €163 million on 2024. This Government is redoubling its commitment to a just transition ensuring that our journey to climate neutrality leaves no one behind. This progressive use of carbon tax revenue is an important vehicle for cost sharing and the equity considerations required for this transition.

In terms of the Government's commitment to investing in our critical infrastructure, most recently, we saw that price review, PR, 6 will deliver on the programme for Government's priority to ensure we have the necessary infrastructure to improve our electricity grid. The Commission for Regulation of Utilities, which is the independent regulator, is responsible for PR 6, for which the consultation has now closed. The CRU is considering submissions before publishing its decision, which is expected before the end of the year.

The Government is also investing €3.5 billion in equity in EirGrid and ESB Networks to ensure the required infrastructure programme is delivered. This investment will keep consumer costs down by ensuring both EirGrid and ESB Networks maintain high credit ratings and can borrow at a lower interest rate, thereby lowering the overall cost of investment. Delivering investment in our electricity grid offers one of the fastest means that can impact the overall electricity cost to consumers. While it is a hugely concerning and regrettable position that network tariffs will rise under PR 6, these increases are necessary so that we can invest in and future-proof our electricity grid. Officials within our Department will continue to work in conjunction with the CRU, ESB Networks and EirGrid to ensure we have the delivery of grid projects and see where they can be accelerated, where possible.

The national energy affordability task force has been established by the Government to identify, assess and implement measures that will enhance energy affordability for households and businesses, while delivering key renewable commitments and protecting security of supply and economic stability. This will be a very important element of the Government's work to improve both our competitiveness and complement the action plan on competitiveness and productivity. A key output of the task force's work will be to deliver an energy affordability action plan that will identify a comprehensive range of solutions, including measures targeting households and energy poverty.

In recent years, the Government has demonstrated its commitment to supporting householders to meet energy costs both with the most recent energy credits but also on targeted social welfare payments. We will continue to reaffirm this commitment through the programme for Government and the energy affordability task force, as well as our commitment to investing in key infrastructure projects necessary to facilitate a more clean and just energy transition. We will support that, again, through further consideration in budget 2026.

I again thank all the Deputies for their input on this important matter.

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