Dáil debates
Wednesday, 3 December 2025
Energy Costs: Statements
8:40 am
Peter Cleere (Carlow-Kilkenny, Fianna Fail)
I welcome these statements on this very important topic. Addressing energy affordability is a priority. It is time to focus on long-term affordability and ensure that every household across the country can access secure affordable and clean energy. I want to talk in particular about retrofitting. A deep retrofit can save a household approximately €1,100 per year in energy costs, which is a significant saving. In 2025, €280 million was allocated to the warmer homes scheme, which provides free retrofits to households in energy poverty. In 2024, this scheme facilitated nearly 8,000 energy upgrades in low-income households. Some 257 of these were in Carlow and 304 in Kilkenny but it is too slow. The average waiting time is 20 months, which is ridiculous. It has to be speeded up to give long-needed solace to these vulnerable families around Carlow and Kilkenny.
I acknowledge that the average cost of an upgrade in 2015 was €2,600 and that the average cost has increased significantly. This year the average cost of a deep retrofit upgrade is €29,000. Huge work has been done on the funding side of things but the speed is an issue that has to be addressed as soon as possible. Record funding of €558 million is allocated for SEAI, residential and community energy upgrade schemes next year. This is an increase of €89 million on the budget 2025 allocation, which is to be welcomed. The funding is expected to be supplemented by additional funding, such as an allocation from the ERDF, which will provide for an increase in the allocation for the warmer homes scheme. Continued support is also provided for the home energy upgrade loan scheme, which provides low cost-retrofit loans with interest rates available from 3%.
What I can say is that the hundreds of families in Carlow and Kilkenny I have spoken to, who got their properties retrofitted, could not speak highly enough of the scheme once the work was completed and the savings to them and their families have been fantastic. However, once again I have to really make this the biggest point here. It is too slow. The finance is there but the speed of delivery is too slow and it has to be tackled with a bit of purpose.
I also acknowledge what previous speakers said in relation to the fuel allowance. The payment will increase by €5 from €33 to €38 per week from January 2026. That is to be acknowledged because that money is going to help vulnerable people right across the country and in particular in my constituency of Carlow-Kilkenny. It is an additional €140 during the annual fuel allowance season. That has to be welcomed, along with the reduction of VAT on electricity and gas to 9%, which has been extended until 31 December 2030. This measure will help to reduce household energy costs by up to €100 per annum for the next five years. For those aged under 66, the means limit on the fuel allowance is linked to the rate of the State contributory pension plus €200. It therefore increases automatically if there is an increase in the rate of the State contributory pension.
Given that there are many vulnerable customers out there, it is important to acknowledge that extra consumer protection measures are in place for registered vulnerable customers, including priority reconnection after outages. A disconnection moratorium for reasons of non-payment of account for registered vulnerable customers will remain in place from 1 November 2025 to 31 March 2026.
I acknowledge the significant investment the Government is making through the warmer homes scheme and the SEAI. It is making an impact in terms of the funding being available, but I cannot harp on enough about the need for speed in getting these cases over the line. There are thousands of families waiting ten, 12, 15, 18 or 24 months in some instances and it is not good enough. The last thing they want is to face into another winter of excessive costs when they are ready to go with their retrofitting. We all know the funding is there. With the funding that is available, I implore the Minister to make it a priority to fast-track the speed with which applications are brought through the system.
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