Dáil debates

Tuesday, 12 October 2010

6:00 am

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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I move:

That Dáil Éireann, noting that:

— electricity prices increased by almost 5% from 1st October, 2010;

— there is a significant pressure from this electricity price increase on small and medium enterprises (SMEs) experiencing financial hardship and households dependent on low incomes;

— electricity disconnections have increased to an alarming level of approximately 2,500 every month;

— similarly gas disconnections have risen to 20 disconnections a day with approximately 90,000 customers experiencing debt difficulties;

— there is a changing demographic of those in fuel poverty as indicated by research that shows that approximately 60% of gas disconnections taking place are in owner occupied housing;

— €35 million in grant aid set aside for crucial insulation schemes in 2009 was handed back, unspent, to the Department of Finance;

— the cost of disconnections and reconnections as levied on the customer is prohibitive in many cases;

— the Minister for Finance stated that the revenue from the carbon tax would, in part, be used to alleviate fuel poverty yet he has failed to deliver on this promise;

— the Minister for Communications, Energy and Natural Resources has so far failed to enable the allocation of funding promised by the Electricity Regulation (Amendment) (Carbon Revenue Levy) Act 2010 to large energy users; and

— the Minister for Finance has failed to implement a vouched fuel allowance scheme, as promised in Budget 2010;

calls on the Government to:

— publish a fuel poverty strategy as a matter of urgency in view of the Programme for Government commitment that it would be 'published by the end of 2009';

— adopt the Fuel Poverty and Energy Conservation Bill as published by the Labour Party in 2008;

— scrap the plan by the Commission for Energy Regulation (CER) to insist on the rebranding of Bord Gáis and ESB, which Bord Gáis alone estimate will cost it €40 million, a cost to be borne by the consumer;

— direct the CER to implement a zero disconnection policy through the use of prepayment meters and to develop an acceptable policy in relation to disconnection fees;

— implement a National Retrofit Programme as a matter of urgency, with payment plans which will ensure participation from all sections of society, not just those with disposable incomes and to ensure that all moneys allocated are actually spent;

— ring-fence funds raised through the carbon tax to combat fuel poverty in line with commitments given by the Minister for Finance;

— consider extending the carbon revenue levy to SMEs;

— implement a vouched fuel allowance scheme to offset the financial pressures on low income households following the introduction of the carbon tax on 1st May, 2010, as promised by the Minister for Finance; and

— extend a National Retrofit Programme to public buildings, including schools and hospitals in order to bring unemployed construction workers into the workforce and enable apprentices to complete their apprenticeships, in line with Government commitments for 33% energy saving across the public sector by 2020.

I wish to share my time with Deputies Upton and Ferris.

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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Is that agreed? Agreed.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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In this motion I am presenting the case on behalf of the Labour Party for a realistic and effective response to the hidden crisis of fuel poverty. Thousands of families are being put in extreme anxiety because they simply cannot pay their utility bills. This year already approximately 2,500 electricity disconnections and more than 4,000 gas disconnections have occurred every month. Unless the Government wakes up to this reality, the crisis will simply deepen as winter sets in.

This motion does not ask the Government to do anything it cannot do in the current recessionary climate. It does not even ask the Government to do anything it does not accept needs to be done. This motion is about getting the Government to do what it said it would do but did not. It is about calling the Government to account.

A year ago in the renewed programme for Government, Fianna Fáil and the Greens stated, "We will publish a fuel poverty strategy by the end of 2009, in keeping with the introduction of a carbon levy". We got the carbon levy but only silence on the fuel poverty strategy. The same programme stated those most at risk of fuel poverty will be protected with the introduction of the carbon levy. The Government passed on that one too. Another deafening silence despite promises made at the last budget.

The tabling of this motion has already produced some kind of result, even though we cannot tell yet what precisely is going on. According to media reports today, there has been a promise of some kind of fuel allowance increase. The Minister for Finance, Deputy Brian Lenihan, and the Minister for the Environment, Heritage and Local Government, Deputy Gormley, are in total disarray on the issue, however. The Minister for Finance opposes an increase in the fuel allowance while the Minister for the Environment, Heritage and Local Government talks up an increase. Meanwhile, the Minister for Social Protection who has primary responsibility for the allowance, Deputy Ó Cuív, is saying nothing. At a time when the Minister for the Environment, Heritage and Local Government is looking for consensus from the rest of us, the Government parties are squabbling among themselves on this issue. It would be funny except for the fact that it is tragic for those directly affected. This debate has prodded a response, albeit a muddled one, from the Government. Nothing in the Government amendment clarifies the matter, however.

Recently, at my request, the Oireachtas Joint Committee on Communications, Energy and Natural Resources held hearings on the issue of debt management and the high level of disconnections, a matter of concern to both the energy regulator and the utility companies. Organisations such as the Money Advice and Budgeting Service and the Society of St. Vincent de Paul play a vital role in supporting people at risk. I want to record our thanks for their dedication.

Neither does the Government have in place an over-arching strategy to deal with fuel poverty. Will the Minister for Communications, Energy and Natural Resources outline his proposals for a strategy when he responds later? Two years ago, the Labour Party foresaw the growing problem and published the Fuel Poverty and Energy Conservation Bill 2008, the purpose of which was to require the Minister for Communications, Energy and Natural Resources to publish and implement a strategy for reducing fuel poverty. He would also be responsible for setting targets for the strategy's implementation. Regrettably, the Government ignored the Bill then. Now, in the absence of any statutory initiative, I demand the Government takes up our proposal.

In Northern Ireland the situation is markedly different. A fuel poverty strategy is in place which includes a zero-disconnection policy which should be adopted here in the Republic. It is based on the use of prepaid meters so that people use only what they can afford. The regulator here has approved the use of an additional 17,000 free prepaid meters this year, welcome news. Their cost is prohibitive and this measure does not go far enough, however. The UK Government has a legal obligation to eradicate fuel poverty. In Northern Ireland the strategy sets out targets to be met by 2016.

It is time here in the Republic we lived up to this challenge at home. Thousands of households will not be able to afford to heat and power their homes this winter. Winter mortality death rates of approximately 2,000, mostly among older people, are recorded each year in Ireland alone due to the cold, one of the highest levels in the EU. The rise in the number of fuel poor is likely to put more lives at risk this winter. Many families with young children are forced to choose between heating their homes and cooking a hot meal.

Fuel-poor people are living in cold, damp, energy inefficient housing and are often unable to heat their homes to an adequate level. Fuel poverty is defined as the need to spend greater than 10% of the household income on fuel to achieve an acceptable level of warmth. It depends on household income, the energy efficiency status of the property and the cost of energy. However, no comprehensive up-to-date national statistics are available on the number of people experiencing fuel poverty.

Research carried out by Bord Gáis Éireann on a sample of 500 household disconnections showed a new demographic development in fuel poverty. Up to 59% of households disconnected were owner-occupied while only 2% were in social housing. Overcome by unemployment, high mortgages, family breakdown or illness, these are the new poor who live in private estates and in terror waiting for the company man to come and disconnect an essential service.

In one case I know of, a woman is desperate for help. Her husband, self-employed, recently suffered a brain injury and cannot work. They have a young child. When the woman sought help from her community welfare officer to pay for heating oil, she was told no assistance could be given for oil fills.

What is this woman to do? What are all the others like her, mothers with young children, older people with long-term medical conditions who regularly come into our constituency clinics, to do? It has been estimated that approximately 60,000 Irish households live in persistent fuel poverty and a further 160,000 or so experience intermittent fuel poverty. Bord Gáis stated in the order of 20,000 customers are currently carrying arrears of more than €500 and 20,000 customers are in the final resolution stage where disconnection of supply is a possibility. Among all the statistics, the most shocking one is the fact that debt management in Bord Gáis is a problem that is 40 times bigger this year than it was last year. That shows the scale of what we will have to deal with now.

We know certain approaches will help. Early intervention is key to finding the solution and new payment plans must be offered to all those customers who are struggling to pay their bills. All utility companies must have an active role in ensuring that customers are facilitated in paying in methods that they can manage. The ESB told post office workers that people have to pay in €20 instalments, rather than the small amounts they have been paying until now. That is not helpful and I hope it adopts a different approach. That said, it is worth noting that companies, in the main, are making considerable efforts to assist customers in trouble. It is not helpful that the regulator has set the price for disconnection and reconnection fees at around €200. This bears no relation to the cost of these measures or the ability of the debtor to pay it. There needs to be a full review in the context of developing a zero disconnection policy in order that these fees are made manageable.

It is curious that the regulator, which is so exercised with ensuring competition in the market, has not dealt with lack of competition in the free electricity units market. At the current time, only ESB customers are entitled to free units, which is obviously part of social welfare support. Other utility companies are only allowed to offer cash or cheque alternatives and, understandably, free units are preferable to customers. It may seem a small point but this scheme should be redesigned to extend its availability to non-ESB customers.

The Government maintains that prices have decreased but if we look back far enough we find that in 2002 we had among the lowest electricity prices in the EU. Now we are on the higher end of that range. On full deregulation, something that is now being considered by the regulator and which I hope will be helpful to customers, it is extraordinary that before we can have it for households, there will be further costs levelled in the interests of competition. The regulator is insisting that the major utility companies must change their brand names if they are to have price deregulation at an early date.

At a committee I asked the regulator how much it would cost. I was rather startled to hear that the regulator did not know how much it would cost, even though he was imposing the requirement on the major utility companies. It seems it is not his problem, rather it is our problem. We are the consumers being sacrificed on the altar of competition. It is a crazy plan that the Labour Party opposes strenuously. Such a change, and a loss of familiar brand names in which this country can take a certain pride, such as the ESB and Bord Gáis, would involve a campaign to explain it to customers to get them used to a new set of names and would cost at least €80 million for no good purpose. Bord Gáis has estimated it will cost €40 million. The ESB is a much bigger company and it will cost more. If one considers what Aviva spent in changing its name, it is mind-boggling. Who will pay for this bling regulatory measure? The unfortunate consumer will be forced to foot the bill. In the interests of common sense I am asking the Minister, Deputy Ryan, who is a man of common sense, to step in and put a stop to this vagary once and for all. We simply cannot afford it.

There is a context to the issue of how we manage, price and use energy. There is an onus on any Government to deal with fuel costs and climate change in a fair and equitable way. It is a matter of regret that tackling climate change is now perceived by many people as simply about the imposition of a carbon levy. I refer to the public perception that it is seen as a negative when tackling climate change is a responsibility for all of us and the Government can be a help or a hindrance in helping us to face up to it. That is why it is disappointing that a Green Party Minister has failed to deliver fully on energy efficiency measures. There is plethora of energy efficiency schemes but there is no comprehensive national retrofit effort that could transform Ireland's energy efficiency and play its part in tackling fuel poverty.

At present most grant support for energy efficiency measures is geared towards those with disposable income who can afford to make up the cost of the solar panel or have the space for a wood pellet burner. Private companies are springing up to provide renewables for households, and good luck to them, and are clearly targeting the better off who can avail of these grants. I am glad the warmer homes scheme is now available. It is geared towards providing insulation for elderly people on low incomes living in poor quality housing, but it is limited in its range. In my area one has to have a fuel allowance to qualify for the scheme and I understand this is the case all over the country, which means the scheme excludes as many as it includes. The fact is that very often those on low incomes are still living in poorly insulated, sub-standard, energy inefficient homes.

In a recent survey among homeowners who took part in the home energy saving scheme carried out by the Sustainable Energy Authority of Ireland it was found that "single and low-income households are under-represented, as are younger adults and those in rented accommodation". The reality is that poor householders are means tested for basic insulation projects while the better off are entitled to claim for grants for various energy efficiency measures. Even allowing for this startling unfairness the Minister, Deputy Ryan, failed to ensure that the funding allocated for energy efficiency was actually spent last year. It was budgeted for and allocated, and was in the Estimates, but some €35 million was returned to the maw of the Minister for Finance because the Minister, Deputy Ryan, could not implement his own policy.

Other commitments that have been made in the programme for Government, such as the proposal to maximise energy efficiency with a target of 33% energy savings by 2020 in the public sector, have tremendous potential for job creation. The Labour Party produced a document, The Energy Revolution, which put forward very clear proposals for a national energy efficiency retrofit programme to create at least 30,000 direct construction sector jobs. We recognise the need for an immediate jobs initiative and these schemes, and the retrofit project in particular, are the low hanging fruit for job growth and energy savings.

This summer, during an Oireachtas committee meeting when I questioned the Minister, Deputy Ryan, on his failure to deliver, he asked me what I would do differently and I told him. I said that, first, I would concentrate on houses for which there is greater need. I certainly would invest in insulation in public buildings, such as schools and hospitals. Every hospital should be covered with external insulation. That should be the Government's marker if it is serious about insulation and increasing energy efficiency. I am glad the Minister agreed with me, yet there is no major programme of insulation for our schools, hospitals, Garda stations and public buildings even though there are thousands of construction workers with the necessary skills who are without work.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Fuel poverty has always been a major concern in my constituency. Every winter people contact me worrying about their ability to heat their homes and looking for advice on where they can get assistance. Last winter was particularly harsh and as the problem was far greater than had been experienced previously, we had to pay particular attention to the issue. Last January, we had a big freeze during which the country came to a standstill. People sought top-up deliveries of home heating oil and other heating fuels to ensure they could heat their homes adequately. For many people this additional expenditure put stresses on already tight budgets.

During this time of extreme weather conditions we were also reminded to keep an eye on our older relatives and neighbours. The reasons for this are the consequences of being cold and the knock-on health effects of inadequate heating which are well known, particularly with regard to the elderly. Last year, for perhaps the first time in a generation, we were also acutely aware of the effects of the recession on households. It was not only elderly pensioners and low-income families who were at risk of fuel poverty, it was also those who were coming face to face with the reality of the recession for the first time.

Traditionally, fuel poverty would have been considered an issue associated with lower income areas throughout the country. However, this recession is so widespread that fuel poverty is now a very real issue in households that were previously considered well off. Families who relied on two incomes to meet their financial commitments who never faced the prospect of not being able to adequately heat their homes throughout the winter but who have lost one of those incomes are now suddenly facing exactly this scenario.

In recent weeks, we were given an insight into the extent of the problem by presentations from the ESB and Bord Gais at an Oireachtas committee meeting. We heard from Bord Gais that every five minutes it enters into payment plans with customers who have fallen into arrears. We know that each month this year approximately 2,500 people have had the electricity supply to their homes disconnected. Figures from the Commission for Energy Regulation show that gas disconnections are running at a rate of approximately 20 per day. Disconnections are an absolute last resort when other measures have failed but while some of these figures can be accounted for through houses no longer being occupied as a result of persons leaving the country, the sheer number of disconnections is staggering. We know that approximately 60% of gas disconnections now take place in owner-occupied housing and this is a huge change.

Perhaps more worrying are the approximately 90,000 gas consumers experiencing debt difficulties. This may in large part refer to persons who have exhausted their savings after becoming unemployed, fallen into arrears on bills and are unable to pay off their arrears and meet their monthly outgoings at the same time. This is the real effect of long-term unemployment and it indicates that the rate of disconnections is therefore only the tip of the iceberg of what is clearly a crisis.

As my colleagues pointed out in recent days, the revised programme for Government promised a fuel poverty strategy by the end of 2009. However, here we are almost one year on and there is still no sign of it. How can the Government have been so negligent at a time of soaring unemployment with low-income families facing such financial pressures? How can the Government not consider this an urgent matter? In the intervening time we have seen the introduction of a carbon levy on home heating oil and the sanctioning of a 5% rise in ESB prices. The carbon levy was introduced despite the failure of the Government to deliver on promises by Ministers that arrangements would be made to assist those most at risk of fuel poverty before the levy was applied.

We have to consider the Government's priorities; we have spent more than two years debating every aspect of the banking crisis and it has consumed political life at the expense of almost all other issues. This is not to say that the banking crisis is unimportant; it is important, but the knock-on effect of that crisis is critical. It is precisely because of the banking crisis that we now find the country and the economy in the grip of a recession that affects everything from food on the table to payment of mortgages and the prospect of a miserable and freezing winter for many of whom we call the "new poor".

I find it inexcusable that an issue as important as fuel poverty, which forces people to choose between essentials like food and heat, is almost an afterthought for the Government. Why should we have to question the Government for not delivering a strategy that was plainly needed last winter and is nowhere to be seen as we face into this winter? Why, when the issue of fuel poverty is patently within our ability to resolve, do we have a Government which at best procrastinates on resolving the problem and at worst is remiss about it?

This issue must be considered in wider terms. In recent weeks we have seen an ESB price hike of 5%. This increase compounds the problems we already face in this area. However, not only does this increased cost affect those who have lost jobs or suffered wage reduction, it places additional costs on businesses and therefore affects the competitiveness of our economy, hampering efforts to start job growth. I fail to see the logic in this approach; either the Government is serious about these issues and adopts complementary policies to address them, or it operates conflicting policies that just make the situation worse.

That €35 million in grant aid set aside for crucial insulation schemes in 2009 was handed back just beggars belief. Measures to increase fuel efficiency, such as retrofitting homes with proper insulation, are absolutely necessary to tackle this issue. As well as long-term cost savings and better home heating, they provide employment in the most ravaged sector of the economy. Retrofitting homes is a labour-intensive job and its benefits are many, so why was this money in targeted grant aid not spent when it is clearly needed? I have met many construction workers throughout my constituency with a variety of skills who asked me about what was being done for them. These people want to work. This is an area where there is a clear need for investment, but when we allocate money for such projects it is not spent.

Fuel poverty is a problem throughout the country; surely it demands urgent and immediate attention. The Labour Party has proposed measures to tackle this problem, from a national retrofit programme to return unemployed construction workers to the workforce to implementing a fuel allowance scheme to alleviate the pressures on low-income households following the introduction of the carbon tax. These and other measures would more than offset their costs if implemented as a coherent strategy that addresses the issue of fuel poverty while providing long-term benefits in areas of efficiency, savings and tax revenue.

In the coming months, I fear we will see a much greater input from the Society of St. Vincent de Paul and we must acknowledge the great work it does to support families in need, not only with regard to fuel poverty but in many other areas where there are huge demands in terms of household bills. It is simply not good enough for the Government to sit on its hands and let the Society of St. Vincent De Paul and MABS take over its responsibility.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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I thank the Labour Party for providing me with an opportunity to speak this evening. I fully support the motion. My party has been campaigning strongly throughout the State on the issue as it is clear that fuel poverty is one of the key problems facing households. Many in my party in the Munster area have been very active with regard to an attempt to cut off the electricity supply of an individual. They collected more than 7,000 signatures which were handed in at the ESB office. Recently released statistics show that at present the ESB cuts off the electricity supply of more than 900 people a month, with overall disconnections at a monthly rate of approximately 2,500. Gas disconnections have increased to something in the region of 600 per month.

My party and others have long pointed to the problem of fuel poverty here. It has been highlighted in official studies and by various Government agencies, and from time to time Ministers have recognised the problem and promised to take measures to alleviate it. Far from doing that, they recently facilitated an increase of 5% in the price charged to electricity consumers. We called on the Minister to reverse the decision to impose the 5% levy but that call fell on deaf ears.

I have dealt with cases, as I am sure has every other Member, where people have found themselves in financial difficulties which have caused them to fall behind in paying their electricity and gas bills, and in some cases have led to the threat or the actuality of their supply being disconnected. I have dealt with numerous such cases, in some instances successfully but in at least two of the cases no compassion was shown. In one instance earlier this year, a family whose daughter was doing the junior certificate was cut off a week before the examination. This was deplorable. It was subsequently reconnected. Can the Minister imagine the daughter or son of anybody in the House going in to do the junior certificate without a shower or a wash in the morning as a consequence of a lack of compassion from the electricity suppliers?

Unfortunately, many of us who have made representations on behalf of such people in difficulties have noted the unco-operative attitude which the ESB has adopted towards struggling families who are attempting to make arrangements to pay their bills. Despite what the company states publicly, there seems to be a rigid attitude and a refusal in many cases to come to an agreement on repayments. It even charges for the call out to cut people off. That is outrageous behaviour from a State company. It charges when it tells somebody the company is going to cut them off and then it also charges for a reconnection, adding to an already big bill that in many instances the family cannot afford to pay. The ESB needs to begin co-operating with its customers who are struggling in the current climate and to start accepting new payment structures. Cutting the electricity supply of families who are genuinely trying to meet their payments should not be an option.

My party and others have adopted a responsible attitude to the issue and have advised that if people are in arrears they need to take positive action to address the situation. We advise them to contact the supplier and attempt to arrange a repayment plan. However, that is not helped if the agencies concerned adopt the attitude which they have up until now. The vast majority of people who fall behind in their payments do so not because they are reckless or irresponsible, but because of genuine financial problems. They should not be treated as though they were criminals.

We have also advised that people in financial difficulties that are causing them to miss energy and other repayments should also consider contacting the Money Advice and Budgeting Service which has trained staff who can advise them on this and other financial problems. Local representatives have made themselves available to accompany people meetings with the ESB, Bord Gáis and other energy suppliers to discuss arrears and repayments. However, I reiterate that this is made more difficult if the companies themselves refuse to meet their customers half way. That is why we have also called on the Minister to arrange a meeting with the relevant staff in the management of the energy companies and to impress upon them the need to act in a more socially responsible manner given the pressures in which hundreds of thousands of households around the State currently find themselves. The fact that there is a State involvement in supply ought to mean that the companies concerned act in that manner without having to be reminded.

The suppliers may argue that they themselves are facing financial pressures but that is to overlook the reasons energy supply was placed under State control in the first instance. It was because there were no private entrepreneurs interested at the time that the ESB was established because they did not think they could make enough profit out of supplying electricity or gas, yet the then Government correctly judged that there were factors more important than profit. Unfortunately, that attitude seems to have been lost along the way even to the extent that successful State companies, which would never have gotten off the ground or survived without State investment and which were of no interest to speculative capital in this State, are now proposed for sale or have already been sold off to speculators.

The impact of the increases for domestic consumers has been particularly severe in many instances. The most recent report I can recall on fuel poverty was by the Institute of Public Health, which conducted and published a study in 2007. Even then, it found that fuel poverty in this country was at an unacceptably high level by international standards and in that regard it was supported by the World Health Organisation, which stated that it was shocked by the fact that 17% of households in this State were experiencing fuel poverty - a huge indictment of how the State looks after those most in need. That already bad situation has been exacerbated by subsequent price increases and the overall economic situation, which has led to hundreds of thousands joining the dole queues. Many people who are working have experienced cuts to their wages and living standards and are also finding it hard to make ends meet. No doubt the percentage of households in fuel poverty now is much higher than 17%.

Families on marginal incomes, and particularly the elderly, are the most affected, sometimes to the extent of having to go into further debt in order to heat their homes, and it is estimated that there are approximately 3,000 excess deaths per annum in the island of Ireland due to deficiencies in households being able to meet their energy needs. The most alarming aspect of studies on fuel poverty here is that rates of fuel poverty were increasing even over the years of highest economic growth and that the level of household income below which families were finding it hard to meet their energy needs was also rising. It is hard to comprehend that with the economic growth during the so-called Celtic tiger, more and more people were finding it difficult to meet their household's energy needs. It reflects the inequalities in society where those on low income and surviving on welfare are finding it more and more difficult to meet their energy needs. As the motion points out, the majority of homes where gas is being disconnected are owner occupied.

It is clear then that it is not a problem exclusively, or even mainly, associated with people on social welfare. The fact that the income threshold at which people find it difficult to pay their energy bills has risen is also an indication that energy prices and the relative proportion of household income required to meet their needs has been rising at a faster rate than most other essentials. In the current economic situation, that is a recipe for social disaster and a similar study on fuel poverty to that conducted in 2007 would undoubtedly make much grimmer reading.

My party has also proposed measures similar to those in this motion. We have pointed to the need for a fuel poverty strategy and to the failure to implement to date the Government promise to create such a strategy. I also called here, when we were debating the carbon tax, for such funds that accrued from the tax to the Revenue to be devoted to the energy sector and to combating fuel poverty. As I stated at the time, the carbon tax was simply another excuse to impose extra taxation. It is ironic that the Green Party, which made energy such a central plank of its policies when in Opposition, ought to have co-operated in such a cynical move. It would be expected that reducing energy wastage might be a priority for the Green Party also and there are economically beneficial ways of accomplishing that. That would not only reduce the amount of energy lost, and reduce costs and bills, but would also create employment.

The motion refers to a public programme to refit public buildings in order to make them more energy efficient. My party has also called for a similar programme, not only for public buildings but also to ensure that domestic homes are likewise made more energy efficient and in that way help to reduce household bills as well as creating much needed employment in construction and other sectors. In the current economic climate it seems a realistic way to go because we need to create employment and get as many people back to work so that we can reduce fuel poverty.

Unfortunately, in this area as in others, the Government has displayed little imagination and is wedded to a programme of cuts in public provision and expenditure allied to further impositions on ordinary people. It is little wonder that such an attitude is shared by the management in the energy suppliers, with official encouragement.

I support this motion and call on the Government to take on board what is being said here and recognise the serious situation facing many households in the State at present.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

I move amendment No. 1:

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

To delete all words after "Dáil Éireann" and substitute the following:

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

"recognises that:

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— Ireland faces particular challenges in terms of energy cost competitiveness, including significant dependence on volatile imported fossil fuels, particularly gas and a requirement for major investment in energy infrastructure, following two decades of under-investment;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— the implementation of Government policies, along with falling natural gas prices, has led to significant reductions in Irish electricity prices in recent years, bringing them closer to and in some cases below EU and Eurozone averages for both domestic and business consumers;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— Government policy to foster competition in energy markets is working, with multiple suppliers offering a range of products to all segments of the market and that significant discounts are available to households and businesses who simply switch their supplier;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— the Public Service Obligation (PSO) levy in place for this year accounts for the entirety of the rise in electricity prices from 1st October, 2010, that the Government has decided to cover the full cost of the levy for those households in receipt of the free electricity allowance and that a significant number of domestic and business customers could reduce their electricity bills and more than offset this cost by availing of reductions offered in the competitive electricity market or by engaging in Government supported energy efficiency programmes;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— improving energy efficiency has been widely agreed internationally as a key mechanism to offset energy price rises, enhance security of supply and reduce greenhouse gas emissions;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— increasing the contribution of renewable energy in the Irish fuel mix is the best protection against further fossil fuel price rises;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— the Electricity Regulation (Amendment) (Carbon Revenue Levy) Act 2010 commenced on 1st July, 2010, that the Commission for Energy Regulation (CER) and the Department have put in place the necessary administrative procedures and arrangements and that the CER has been administering the scheme since 1st October, 2010; and

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— re-branding is a necessary part of deepening the EU internal market liberalisation process and enhancing competition in the national market, in the best interests of consumers;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

commends the Government for:

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its comprehensive actions to deliver a secure, sustainable and competitive energy supply, including its commitment to increasing competition as the best means of exerting downward pressure on electricity prices in the long term, and improving the regulation of energy markets, with resultant benefits to consumers;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its policy of enhancing security of supply and reducing our exposure to volatile international fuel prices through increased fuel diversity, with particular focus on indigenous and renewable resources;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its continuing commitment to those most at risk of energy poverty, through the creation of a cohesive and coordinated approach to energy affordability issues overseen by the inter-Departmental/Agency Group on Affordable Energy;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its commitment to produce a comprehensive Affordable Energy Strategy which will outline actions to protect vulnerable households with a view to ensuring that existing and future measures are targeted at households where the risk of energy poverty is greatest;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its commitment to 340,000 fuel allowance recipients by providing over €231 million in 2009/2010 via the fuel allowance and smokeless fuel scheme as a contribution towards a person's home heating costs;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its commitment to 380,000 Household Benefits Package recipients, which will cost in excess of €200 million in 2010;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— committing to domestic and non-domestic energy efficiency programmes including for social housing, including:

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its continued commitment to the Warmer Homes Scheme, which has supported community-based organisations and private sector contractors to provide nearly 51,000 energy efficiency improvements in low-income households over the past nine years; This year alone will see energy efficiency expenditure near €30 million in vulnerable homes;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its commitment towards improving the quality of private housing for vulnerable groups through the provision of €80 million in 2010 for the operation of the housing adaptation grant schemes for older people and people with a disability; and

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its commitment to providing incentives for domestic retrofits through the Home Energy Saving (HES) schemes, which was launched in March 2009 and since then has processed over 86,000 applications resulting in expenditure of over €48 million;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its commitment to introducing a new national retrofit programme in 2011 on foot of the most recent consultation exercise which closed in mid-September 2010 and which aims to deliver energy efficiency upgrades to one million residential, public and commercial buildings in Ireland, involving energy supply companies, energy services providers, construction workers, energy auditors and policymakers;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— the provision of significant programme supports for all businesses, including an energy efficiency tax incentive under the Accelerated Capital Allowance scheme; Over 1,600 businesses have already availed of this programme, all of whom have identified immediate savings, typically greater than 10% of costs; Total business cost savings from the programme already total close to €60 million a year;

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— the creation in June 2010 of an Energy Efficiency Fund, which supports exemplar energy efficiency projects in the public and commercial sectors; 43 projects have been approved to date which will deliver lifetime savings of over €70 million; and

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

— its comprehensive package of measures to mitigate energy costs for large energy users, including the taking of windfall gains from the electricity industry, the provision of rebates and the rebalancing of network charges."

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

I propose the Government amendment to the Labour Party motion while recognising that this is an issue very much worthy of debate. I commend Deputy McManus on raising it because, as I have said previously, this is a crucial issue in energy policy for us to get right, to consider and reconsider. I will set out some of the programmes and projects in place and ones we need to introduce to supplement what we are doing in this area. I will respond to some of the issues raised in Deputy McManus's contribution and the contributions of other speakers and well as setting out some of the measures the Government has taken.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

I wish to refer to a useful meeting of the Oireachtas committee on the issue of disconnections, which is a matter of concern. That meeting continued for four and a half hours and I followed parts of the debate on monitor. It was a useful exercise to bring in the energy companies to account for what they are doing, to bring in the regulator to get the commission to reconsider the policies in regard to disconnections, which we all agree must only be the last resort. What emerged from that meeting is that this is a complicated issue and it is important to reflect on how we can get this right to minimise the social disruption caused to people by being disconnection and to ensure we do not have a hugely expensive system that would impose a significant cost on customers. That meeting was useful. I look forward to the energy regulator returning with the commission's review of the disconnections policy in that regard and to ascertain if there are further measures that can be introduced to make the policy fairer and more effective.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

A measure that has been put forward and which is coming on stream is the allocation of pre-payment meters. This is one of the immediate measures that can be put in place. In regard to gas pre-paid metering, the CER has already revised the definition of "financial hardship conditions", which has made it easier for people to get such pre-paid meters. Since December 2008, some 1,500 gas meters have been installed on the grounds of financial hardship. We all acknowledge that this is a serious issue for many people. Such metering is one element which may assist people in danger of experiencing fuel poverty to ensure they will not suffer a disconnection.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Returning to that meeting of the Oireachtas committee, having listened to what people involved in this area said, one of the key points is that we need to get people to contact their suppliers. They should not ignore the problem, it is better for them to get engaged. While I take on board what Deputy Ferris said about the Government's over-reliance on the Money Advice and Budgeting Service, MABS, or other bodies, those bodies are working effectively, they have public contact and have gained public trust. It would be wrong for us to send out any message other than that people should contact their supplier and they should contact MABS. A crucial first step in any good code of practice is to set out a repayment plan to acknowledge the issue and to seek flexibility, which, I believe, will be given by utilities in advance of any disconnection. That is the best and most important measure that we can encourage and support to avoid traumatic cases where disconnections occur.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

There exists a code of practice which requires that customers must be given a seven-day notice of disconnection in advance. It is right that no elderly customer would be disconnected in the middle of winter or that no person with a medical condition who relies on medical equipment would have such equipment shut off or his or her electricity disconnected. It is right that the regulator is considering if we need to go further than that.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

When electricity and energy prices spiked in 2008, an interdepartmental committee was set up, the membership of which comprised officials from all the relevant Departments who have an interest in this area, including the Department of the Environment, Heritage and Local Government, my Department, the Department of Health and Children, the Department of Social Protection and other outside bodies. That committee examined the various measures being taken and if it was necessary to make immediate changes to them. I will give some details of those measures, which are not insignificant.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Some 380,000 customers are recipients of the household benefits package. Under this package a standing charge for electricity is paid and 2,400 free units of electricity per annum are given to those in receipt of it. In the case of gas customers who are recipients of this package, a gas allowance of a subsidy of €52 is provided in terms of a customer's gas bill every two months or a subsidy of €111 is given over winter months. This package of €200 million from the State, recognises that fuel poverty is an issue. It is not insignificant. It is a significantly larger scale package than the equivalent measures in the UK. Certain measures have been put in place, which recognise that fuel poverty is an issue of concern.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

In addition to that, the fuel allowance scheme was increased in light of those higher oil prices, recognising that there was an increasing issue of energy poverty with the higher spike in oil prices two or three years ago, to a provision of €20 per week for 32 weeks. That was an increase in both the rate and the length of time in respect of which the fuel allowance measure applied. This year, we are expecting that to have a cost of some €231 million on top of the €200 million that is allocated under the household fuel benefits package. Therefore, there are significant payments by the State to cover the valid issue of fuel poverty.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Critically, I believe we would all agree that one of the best measures to protect people from fuel poverty is not only to provide an ongoing allowance to cover the fuel cost but to improve the building to ensure that the demand for such fuel is decreased. That is a far better investment by the State and far better protection for people experiencing fuel poverty than concentrating on household benefits or fuel allowance packages. As important as those benefits and payments are, it is far better to cut off the need for people on lower income to spend more money on fuel to heat their homes.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

That is the reason I am proud, at a time when energy prices were rising, that we increased the warmer homes scheme. When it was introduced in 2008 approximately €2.5 million was being spent on it. This year, the best part of €30 million will be spent on it and the works will be carried out to more than 22,500 houses and up to 25,000 houses by the end of this year. This scheme targets those people on lowest income - those in receipt of fuel allowance, disability benefit or invalidity benefit. I have been in many houses where people have said their house has been transformed, it is a warm house and they do not have to turn on the heating as much because the heat is retained as a result attic insulation, wall insulation or other measures that have been put in place. That scheme is working. It has had a huge effect in terms of helping tens of thousands of households threatened by fuel poverty. I am pleased that we have been able to extend it to the extent we have done so.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

I am told that this year the Department of the Environment, Heritage and Local Government will spend approximately €40 million in a similar retrofitting scheme to benefit people living in social housing. Under this scheme the local authority can claim 90% of the capital cost - up to €15,000 - if a building is improved beyond a C1 rating, or if that is not possible, for technical reasons, in the case of the building, a 50% grant allocation is being made available to a local authority up to a total of €15,000.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

I would say in response to Deputy McManus that there is an ongoing clear commitment on the part of the Government that when it comes to energy efficiency retrofit measures we target and allocate to those on lower incomes and in social housing. That €70 million budget this year will be spent and targeted, although we will not know the detail until the end of the year, as these things are often staged. I have been told by both Departments that they are confident we will spend roughly that amount. That targets specifically those in receipt of fuel allowance or those living in social housing.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

We need to go further. While it has taken longer than we expected, my Department has been working on myriad measures on which we have to work. We have been working on the alternative fuel energy strategy - the affordable energy strategy. Having gone out to public consultation earlier this year, we will be able shortly to produce our report in that regard. Critically, it sets out to do what Deputy McManus seeks, namely, to identify the most at risk categories. We engaged consultants specifically to take account of demographics and household patterns to identify the worst cases, that is, those who are most vulnerable to fuel poverty. We must target these extreme cases given the health effects that arise from what is a life and death issue. It is appropriate, therefore, that we do research and statistical analysis to allow us to target these households and change our schemes to respond to extreme cases.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

This is not only a matter of correlating household formation but also of correlating the type of dwelling because there is a clear correlation between the age of a dwelling and the performance of the building. It is this correlation of household characteristics data analysis and building analysis of age and type of building which will allow us to start targeting our measures on particular housing sectors.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Deputy McManus cited a recent report done on the home energy savings scheme. The scheme is working well and is receiving approximately 1,300 applications per week. While I accept the scheme's budget was not fully spent last year, this was largely because it is a demand-led scheme. It took time to get the scheme up and running and achieve the level of public response we expected.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Some statistics concerning the home energy savings scheme bear repeating. Of those who engaged work under the scheme, 98% would recommend to their neighbours that they do the same work. This is not an insignificant percentage. The research also indicated that 90% of respondents would approve the contractor who undertook the work. While I would prefer an approval rate of 98%, I anticipate that in any survey of any category of work done on homes, a 90% approval rate is not a bad result.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

From speaking to officials from the Sustainable Energy Authority of Ireland, I understand the housing characteristic of the households involved in the home energy savings scheme is very much the standard, typical Irish house. If I recall correctly, the survey found that the average household income of these households was approximately €50,000. I understand the number of people surveyed was 10,000, although I stand to be corrected. Scheme participants belong to what would be described as middle Ireland and many of them would be in a certain amount of difficulty with debt, whether because one partner has become unemployed or the value of the mortgage may be higher than the value of the house. The scheme has been of real benefit to tens of thousands of people this year and last year and will continue to benefit others next year.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Deputies McManus and Ferris argued that we should introduce a national retrofit scheme. The Deputies will be aware that the Department is engaged in precisely such a project. Our new, national retrofit programme has been out for consultation. The programme is designed to bring together and co-ordinate in a more efficient manner the various schemes in place.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

Notwithstanding the success of current schemes, we need to adapt and improve them in a number of ways. First, we need to place on all utility companies supplying energy to the home, whether gas or electricity, an obligation to have their customers make energy savings. When one analyses different international projects and policies, they all show that this is the correct approach. We will then tailor the obligation scheme to meet some of our social and affordable energy objectives as well as our energy policy objectives. Funding will remain available in difficult budgetary circumstances because this form of investment makes more sense than any other investment. We will be able to target low income households at risk of fuel poverty with support funding from the State. This would be provided to the supplier - the person doing the work - to ensure the work is done at the least cost and in the most effective and efficient manner.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

The evolution of our various schemes towards one which is driven by a range of energy companies uses a variety of energy service company models to secure real efficiency and technological innovation in the way work is done. This is the right way to go. This evolution from existing schemes to one which imposes obligations on energy service companies and utilities will take time and will result in a better system. Crucially, it will allow us to start introducing some pay-as-one-saves elements which will help fund some of the capital costs involved. This approach entails providing a loan up front to be paid off subsequently over a five to ten-year period using the savings made by the householder. The annual saving from the home energy saving scheme is estimated to be €750. This approach overcomes the capital cost obstacle to doing work of this nature.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

We are moving towards a retrofit scheme and the Department is committed to evolving the current model, not only for domestic buildings but also for public and commercial buildings. These offer significant economic opportunities to make savings and reduce our current budgets while creating construction jobs which are badly needed at this time. It will take some time to get right the financial mechanisms and utility obligation. Once the mechanics are working effectively, however, we can ramp up the scheme to a massive size. It makes economic sense to do so.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

We have commenced this process. This year, for instance, we provided funding for approximately 45 projects in public and commercial buildings. The nearest example that comes to mind is the Mansion House, with which Deputy Catherine Byrne is familiar. The Department has committed to a whole energy plan for the building that will deliver energy savings. We need to do this type of work on a range of public buildings and the Department is supporting many such projects this year with a €9 million budget. Over their lifetime, the projects will deliver savings of €70 million. These types of investments make economic sense.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

As we are only at the starting point. We still have a major challenge ahead if we are to achieve our commitment to a 33% improvement in energy efficiency in the public sector. It will take time to ramp up the scale of the response required to achieve this objective. Crucially, we are doing it right, as has been confirmed to me during visits to the United States and United Kingdom where schemes similar to the new retrofit scheme we are on the point of launching are being considered. We have done a detailed, lengthy and thorough consultation exercise which builds on the experience of recent years in operating other schemes.

Deputy Minister for Communications, Energy and Natural Resources ( Eamon Ryan:

The increase in electricity prices arising from the introduction of the public service obligation, PSO, levy at the start of this month, as announced in early August, has been understandably controversial. The levy was, however, prescribed in legislation. By 1 August, the energy regulator had to have considered and introduced the levy. It was not new, therefore, but a requirement under legislation.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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As the person responsible for the legislation, the Minister can also change it.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I look forward to debating this issue with the Deputy during Question Time and on other occasions.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The price increase is not the regulator's fault. The Minister can change the legislation, which was passed by the Oireachtas with his support.

8:00 am

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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PSO levies are introduced for a reason.

I will go into the details and then will ask questions of Deputy Varadkar to which he may be able to respond during his own contribution. As for the purpose, first and primarily-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I understand how PSOs work.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Allow me to frame the questions for the Deputy. The PSO levy this year was approximately €156 million, approximately €90 million of which was accounted for by the peat-fired power stations, some brought over from the previous year but most from this year. In my announcement I stated that I wished to examine this issue to ascertain whether this could be reduced, which would be appropriate. However, I understand that Deputy Varadkar's party now appears to suggest that the PSO should be ended or stopped. A motion to that effect was tabled in the Seanad last week by the Fine Gael Senators. Deputy Varadkar should check with all the Deputies on his side as to whether they are comfortable with or support such a position.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I believe the motion called for a postponment pending a review, rather than to stop it, which is quite a different thing.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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We will let the Minister make his contribution.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I look forward to hearing Deputy Charles Flanagan's response in this regard because a postponement along the lines suggested by Deputy Varadkar would have the effect of shutting the peat-fired power plants, as well as the associated harvesting arrangements. That is what would happen.

Similarly, the second reason for the PSO is that the best way to protect our people from price rises is to switch to renewable energy. We have the cheapest available onshore wind in particular, to which we now can turn as the greatest protection from higher future fuel prices arising from volatility in gas or other fossil fuel import prices. Moreover, it is bringing down the price of electricity today. Every time the wind blows, it switches off the expensive-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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That is not true.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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It is true. Moreover, were the Deputy to talk to people within the industry-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I do.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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-----about the reality of the market or were he to watch the market price, which now is transparent-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I refer to the reality of the numbers. Bringing down the price does not need a subsidy.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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-----Deputy Varadkar would see that when the wind blows, it brings down the market price of electricity. The reason I am surprised at the Deputy's position is that over the past four to five years, such has been the benefit of Ireland's switching to wind that it has derived more than €250 million in a subsidy from wind that has helped to avoid having a higher PSO in the peat-fired power plans and elsewhere. Wind has subsidised our system and is the best protection and the best way to bring down prices in Ireland.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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That was the case but no longer is true.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The Commission for Energy Regulation has carried out a detailed analysis to the effect that, from memory, were we to meet the 40% target of wind by 2020, it would result in a reduction in prices of approximately 10% to 15% from what otherwise would have been the case given what is expected regarding gas prices. Deputy Varadkar appears to have very little support in his own position for the renewable wind industry.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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On what does the Minister base that?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The Deputy's proposal to postpone-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We have not published any proposals.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Fine Gael has stated in its press releases, which accords with the position of its Senators, that the PSO in respect of wind should be postponed. I assure the Deputy that the effect of so doing would be to kill immediately investment in the wind industry in Ireland. This would have huge consequences in terms of job losses, higher energy prices and, for the second time in a number of years, would create uncertainty in the financial markets that would kill a renewables industry that we are mandated to deliver and in which we have comparative competitive advantage. Fine Gael's suggested postponement of a PSO in support of such a wind industry would have a devastating effect on the development of renewables in Ireland. I ask the Deputy to reconsider his position and to support the Government's position of supporting the renewable industry because the Deputy's proposals would kill it.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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A policy of taking the money out of the companies' profits.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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This would be the worst position-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It proposes taking €80 million out of the profits of companies that make €700 million in profit at present.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Please Deputy. Allow the Minister to speak.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The actual outgoing to the wind sector is closer to approximately €40 million this year. However, even taking this into account, the effect of wind power within our system on a continuous basis is to help keep down the market prices. Such support measures are in place in every other European country in which wind or any other renewables are being developed as alternative supply sources and are recognised to be the correct policy approach. I cannot understand the reason Deputy Varadkar has changed Fine Gael policy to be against such an approach in a manner that is so threatening to Ireland's energy industry and the future lower prices that customers need.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Minister is making it up. He does not even know what is Fine Gael's position.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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My point is that Fine Gael's position, as set out in its press releases and in the motion tabled by Fine Gael is Senators last week to stop-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It is to defer the levy, not to get rid of the entire reason for the PSO.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Stopping or deferring. We can get into semantics. I apologise to Deputy McManus for diverting from the core issue.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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That is not Fine Gael's policy.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Deputy, please. You will have an opportunity to speak in a moment. Stop.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Minister is making things up.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Deputy Varadkar.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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He is renowned for fantasy and for making things up and he is at it again.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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No fantasy comes into it

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I ask the Minister to yield for a moment.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I do not go along with the Minister's fantasies.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Deputy Varadkar, kindly do not ignore the Chair.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I apologise.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Deputy will have an opportunity to speak in a few moments.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Leas-Cheann Comhairle should ask the Minister to speak through the Chair, rather than at me.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Please. Minister, through the Chair.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Through the Chair, Deputy Varadkar's proposal to postpone PSO support levies would be hugely damaging to the wind industry in Ireland and would have huge consequences in terms of higher electricity prices in the long term for Irish consumers. I am simply debating the proposals he has put in the public domain. This is not fantasy but is reality. It is the reality of an energy policy of which one should be extremely wary because it could have huge consequences to the people, were it put into effect. I am glad the Government will not do so.

I will continue by reverting to the issue concerning prices because it is a subject about which Members must be clear. First, arising from that debate, a range of different statistics were produced regarding the present position on prices. This is difficult because there is a range of different categories. For example, were one to compare the price of a holiday home in Ireland with an ordinary home-----

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Will the Minister yield to allow me to ask a question of him?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I will if I have time.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I am afraid that only three and a half minutes remain.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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I asked a specific question on whether the Minister would intervene with the regulator to induce the latter to end its crazy proposal which insists that the big utility companies must change their brand names? As Members are running out of time, I would be grateful were the Minister to respond.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I respect the independence of the regulator. However, I will, as I do on an ongoing basis, discuss that issue, among others, to ensure there is a common sense solution that does not cost the Irish consumer. In a variation on this subject, I understand that any such cost of a brand change would not go through to the regulated cost base. Although it would come from the company's cost base, it would not be put onto the prices. This is one variation on what I heard during Deputy McManus's contribution. However, I will continue to discuss this matter with the regulator, while recognising its independence, because a properly-regulated market also brings down prices. We have seen this work as competition now exists whereby five or six electricity companies of real scale are bidding to win consumers. Our households can switch tomorrow following a two-minute telephone call and can achieve savings in their bills of between 10% and 14%.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Why get rid of the brand names?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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This comes from having a regulated market and from giving the regulator the freedom to pursue competition. On the back of this initiative, the average Irish household, that is, the category that encompasses approximately half of all Irish households, now pays approximately 2% below the eurozone average. Deputy Varadkar should note that these are the EUROSTAT statistics.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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That was before the PSO levy increase. The Minister is fantasising again.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Why does the Deputy state that this is fantasy?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Minister should speak through the Chair.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I refer to the Minister's own answers to parliamentary questions. His figures are from before the PSO levy increase.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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No, I am afraid-----

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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No. This is not a screaming match between individuals.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Will the real Eamon Ryan please stand up? Is it the aforementioned answer or the one about which the Minister is now fantasising?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Please. Deputy Varadkar, you will have an opportunity. The Minister, through the Chair.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Minister is desperate.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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While Deputy Varadkar asserts that such a statistic is fantasy, it is taken from the latest available EUROSTAT statistics from the end of 2009. I am told that during the first half of this year, the trend has been for a continuing fall in such prices.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Before the recent increase.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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That is a fact. It is a clear statistic presented in the EUROSTAT statistics, which-----

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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That was before the recent increase.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Please. Deputy Varadkar should stop shouting down people.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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-----does not even take into account the ability of Irish householders to make a further 10% saving were they to make a switch and preceded further decreases that came into effect in the first half of this year.

I agree with Deputy Varadkar that no one wants a price increase and that everyone would prefer not to have a PSO levy. However, if the Deputy consequently wishes to kill the renewables industry in this country, that would be a terrible policy mistake.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It would.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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That would be a fatal error and one which goes completely against Fine Gael's so-called NewERA strategy. On the one hand, Deputy Kenny talks about building up a massive new energy project and being able to raise finance, while on the other hand, Deputy Varadkar states that he wishes to put a stop to the support measures that are an essential prerequisite to that industry getting off the ground. That is a circle Deputy Varadkar cannot square. Alternatively, perhaps Deputy Kenny is not being accurate about Fine Gael policy when he states he has this ambition, while Deputy Varadkar has a different ambition.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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No subsidies are proposed in the NewERA policy. The NewERA policy does not require subsidies.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Please Deputy. You will have your opportunity in a moment.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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There is a radical change between the position taken by Deputy Coveney and that taken by Deputy Varadkar. I do not know whether Deputy Varadkar is articulating the Fine Gael policy position or whether Deputy Kenny is setting out the correct position.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It is the policy that is written down.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Crucially and more importantly, I turn away from such political issues towards the issue regarding fuel poverty.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Minister's time is up.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I apologise that my time has come to an end. I commit to the House that the Government will continue to work in its new fuel strategy and affordable energy strategy to target in particular those who are most at risk to ensure they are protected because this is an important issue. We intend to work with the energy regulator on any review that comes out of the work done in the Oireachtas committee in terms of disconnections. The Government will continue the policy approach it has been taking - which is the correct one - in order to reduce energy prices. We have taken some €500 million from the ESB to bring people's bills down. Developing renewables will also reduce prices. I fear terribly what Deputy Varadkar might do to increase those bills.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to share time with Deputy Catherine Byrne.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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That is agreed.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I despair of the Minister. For somebody who preaches about consensus and everybody working together to agree a budgetary strategy, he is showing a great contempt for the Opposition and a great ability to misrepresent other people's positions and make assumptions based on attitudes that are not correct.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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There is no contempt, I am presenting the facts.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It shows how phoney the Green Party is that it demands consensus in regard to difficult decisions but in the case of other policy issues, it just wants to slag people off. It is very disappointing.

I thank Deputy McManus and the Labour Party for bringing forward this important motion, which we support. I propose to address three issues. First, I will refer to the truth about energy prices, which the Minister did not do. Second, I will address the motion before us and, third, I will address ways in which we can reduce energy prices. I am interested in the Minister's considered view on these matters rather than nonsensical contributions.

The Minister's claim that energy prices in this State are 3% lower than the European Union average is incorrect. The chairman of the Commission for Energy Regulation presented the relevant statistics at a meeting of the Joint Committee on Communications, Energy and Natural Resources some weeks ago, a meeting which the Minister did not attend. The data he presented clearly show that since the Minister assumed office, domestic energy prices in total have increased by 6%. When I asked the Minister for Social Protection, Deputy Ó Cuív, what his Department has done in terms of studying these matters, that Department, through Forfás, indicated that the most recent statistics show that average energy prices for high users in Ireland are 5% higher than the average for the euro area. For SMEs, the most recent data show the gap is 15%. The situation has improved in this regard but remains unsatisfactory. All these figures are from the Forfás report.

Data from the Sustainable Energy Authority of Ireland show that business electricity prices range from 97% of the eurozone average for very small users - those using less than 20 MW - to figures of 112%, 111%, 102%, 104% or 103% higher for categories above that. These figures do not take into account the most recent increase. In the case of domestic users, for those who use the least - less than 1,000 kilowatt hours - the price is 58% higher than for the eurozone average; 12% higher for the next group; 7% higher for the next; and for the next group - DD, which is the most common - prices are 98% higher. Again, these figures do not include the increase in the PSO levy.

These are the statistics from the Minister's own Department, but he just makes up whatever he wants to believe because he is basically a fantasist. It is time the Government came clean and admitted to what everybody, including EUROSTAT, Forfás, the SEAI, the National Competitiveness Council, and every single business and consumer organisation in the country, knows - that Irish energy prices are higher than elsewhere in Europe. One can argue about the degree to which they are higher and the different ways of calculating costs, but there is no escaping the reality that, in the main, they are higher. The dogs on the street know it. The Minister's own Department and agencies know it. He should stop pretending and be honest about it. It was not the case in the past but it is certainly the case now that energy prices in Ireland are higher. That means there is something wrong with the policies we are putting forward.

I strongly support the motion before us. Deputy McManus is absolutely right in pushing for a fuel poverty strategy, which the Government promised to publish but did not. I have not read the Labour Party Bill on fuel poverty and energy conservation but I intend to do so. On the question of rebranding the CER, I have a mixed view. I would like to see where the European law stands on that because there are differing views on it and I have not yet received an independent opinion. However, I have spoken to the ESB and Bord Gáis about it. While the ESB did not initially want to proceed with rebranding, it is now happy enough to go along with it at a cost, it predicts, of between €5 million and €8 million. This is money it would have spent anyway in re-advertising and trying to gain back some of the market share it has lost. For the ESB, rebranding the customer supply business is mostly about changing paper and advertising, which is why it estimates its costs will be much lower than those of Bord Gáis. I am not sure whether it is a case that ESB is talking it down and Bord Gáis is talking it up. We must ascertain what the European law is in this regard. If it must be done, then it must be done.

I strongly endorse the position put forward by Deputy McManus in regard to the national retrofit programme both for public buildings and other forms of housing. It is a no brainer. We are all committed to reducing carbon emissions, and the retrofit and energy efficiency measures make perfect sense. They are the most cost-effective measures and they definitely work. We should be prioritising them rather than more expensive proposals, some of which have been put forward by the Minister in regard to certain refits. Certainly we should not proceed in regard to onshore wind.

My only criticism of the motion is that while it addresses many of the consequences of high energy prices in terms of how they impact on individuals and families, it does not address the underlying issue of how we can bring them down. There are ways to do so. For example, we can open more of the market to competition. There is no reason that the dual fuel market, where one has Airtricity and Bord Gáis both supplying gas and electricity, cannot be opened up to competition immediately. Why can the Minister not tell us for certain that the Government will open the domestic market to competition?

We currently fund our capital expenditure through transmission charges. In other words, we put money on people's energy bills to fund capital investment. An alternative system is that set out in the NewERA model where we would sell some of our non-essential semi-State assets and use that money to re-invest in the energy system, to pay for smart meters, establish a smart grid, build 1,000 MW of plant and have onshore wind power clustered in the right locations and connected cheaply to the grid. All this could be done without any need for high transmission charges that drive up costs and without any need for subsidies. That is the difference under Fine Gael's NewERA model. We want to use State investment, not high prices and high subsidies, to drive the industry. The Minister is using the old fashioned model which facilitated the property bubble. He is repeating all the mistakes of the property boom.

Another issue to look at is reducing capacity payments. This year alone generators will receive €551 million just for being there, even if they produce no power. We must consider whether it is necessary at a time when we now have surplus generating capacity to pay power generators more than €500 million per year even if they never turn on the power station.

In regard to the PSO, I am sorry that the Minister who is so keen on consensus and likes to pretend to be interested in the consensual green model is so keen to blackguard and misrepresent the policies of others. The peat aspect of the PSO levy should be reviewed and phased out over time. That is the position Deputy Coveney advocated in the past and we have not departed from that. Obviously, if that is done one must reinvest in the midlands and ensure there is not a net loss of jobs. There are different ways of doing that.

I am very enthusiastic about onshore wind energy. Even though the subsidy increases prices, it is necessary to drive investment in the industry. In time, as gas prices rise, it will make energy cheaper. It does not do so now but it will in future.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I apologise for interrupting. May I ask Deputy Varadkar a question?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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A brief one.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Does the Deputy not agree that stopping the refits for the support price mechanism would have damaging consequences for the financing of onshore wind projects?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I do, but that is not our position. We are proposing to defer the increase and in the meantime, if needs be, to take that money out of the massive profits of the utility companies. The Minister needs to review aspects of the PSO levy. Under the old system, when the price of energy was high, the owners of wind power plants had to pay something back into the fund, but that is no longer the case. When the price is high, not only do they receive the guaranteed price, but they also get a bumper payment. If somebody is getting a guaranteed price that protects them when prices fall, they should pay something into the fund, as they used to do, when prices go up. That would help to reduce the PSO levy.

We need to have a serious debate on this, perhaps somewhere outside the Chamber where we can be more consensual. We must look at the types of refit subsidies the Minister is proposing to put in place for offshore wind and other renewables.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I look forward to taking the Deputy up on that offer, and I hope Deputy McManus will join us. It would be useful in order to achieve clarity.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It would be. It is a debate we have had at committee, which the Minister does not attend. The Joint Committees on Climate Change and Energy Security and on Communications, Energy and Natural Resources have debated the matter of super-subsidies, such as those of 14 cent and 27 cent per kilowatt hour which are twice the market price of energy, and whether such subsidies make sense. Can we be so sure gas prices will go so high so quickly that such subsidies make economic sense? Many people think they do not. For example, Bord Gáis is deliberately not going down that route because it does not think it makes economic sense. Many of the Minister's officials and people who work for other bodies say they do not agree with Government policy when it comes to super-subsidies. On-shore wind generators clustered in the right place and connected cheaply to the grid, particularly in the west, north-west and south-west of Ireland, make a great deal of sense and that is what we should pursue. We should do more or less what the Minister is doing in the communications area where he is taking a technology neutral approach and not giving extra-super-bumper-subsidies to the least efficient plant. That does not make sense.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I look forward to that lengthy debate in committee or elsewhere. We could benefit from a very long and extensive debate on the whole issue.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We should have that debate. I hope the Minister, having said that, now has a slightly more advanced understanding of Fine Gael thinking on this. We understand the issues. We have studied them in detail. We are not total idiots.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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My understanding of the difference between deferring and stopping has not changed. I look forward to a more lengthy debate when the Member opposite can explain that.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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When the Minister comes to that debate I hope he will bring his figures and his calculators. I am not anti-ideology. I am interested in political idealism and ideology but there is nothing worse than having an ideology and ignoring the numbers. Whatever ideological or philosophical position one has must make economic sense. The numbers must add up. Some of what the Minister is doing on the renewable side makes a great deal of sense. Some of it really does not. It could cost us a fortune while gaining nothing for the public other than higher energy prices and pylons on people's property. We need to think very seriously about that.

We must also address the profits of semi-State companies. I have nothing against companies making profits but the ESB, in the current climate when other companies are struggling, does not need to make a profit of €500 million a year or Bord Gáis to make a profit of €200 million a year. The public object to energy price increases because of the huge profits made by energy companies while everyone else is being squeezed. The Government could have taken from their profits, as it has done for the big energy users. The Government took the profits away from the companies to subsidise the big energy users but would not take the profits away from those companies to defer the PSO levy. That shows how the Green Party have been taken over by the Fianna Fáil big business agenda against the interests of small business and ordinary people. Those profits are not justified. The Minister should give a direction to the Energy Regulator that if companies are making profits of that size they are clearly not being put under enough pressure to reduce either their costs or their profits.

There are ways to reduce energy prices if the Minister wanted to. I do not think he does want to, because if energy prices do not keep rising many of his green gambles will not pay off.

Photo of Catherine ByrneCatherine Byrne (Dublin South Central, Fine Gael)
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I welcome the opportunity to speak on this issue. I thank the Labour Party for bringing this matter to the House and I thank Deputy Leo Varadkar for sharing his time with me.

For most people, fuel is the basic fundamental need. We all need it to keep warm, cook, heat water and travel. It is not a luxury. However, fuel poverty is a real threat for many people. The steady rise in the price of gas and electricity in recent years has put a huge financial burden on many low-income households, and the elderly in particular. This has resulted in many people not being able to pay their bills and struggling just to keep warm on a daily basis.

The Government continues to increase taxes in the form of a carbon tax on oil and gas, which came into force last May, and the recent introduction of the PSO levy on electricity from 1 October. Fuel poverty exists when a household needs to spend more than 10% of its household income on energy or fuel to keep acceptable levels of heat throughout the home. The new carbon tax has brought a rise in electricity prices and the new green levy has put an extra burden on many elderly people, people with disabilities and the most vulnerable families in our communities, while the Government should be focusing on energy efficiency programmes. The cost of gas, electricity and, particularly, solid fuel increased hugely between 2008 and July 2010. The cost of solid fuel increased by almost 10% while the cost of bottled gas rose by 17.8% and electricity rose by 3.3%.

This is not sustainable and is pushing many families over the poverty threshold. Recent reports of people's electricity being cut off because they could not pay their bills are truly shocking. Many people are vulnerable at present and the current figure of more than 2,000 households being disconnected for non-payment every month is not acceptable. More and more people are relying heavily on the Society of St. Vincent de Paul to top them up each week so they can manage to pay their home heating bills and keep food on the table. The Society of St. Vincent de Paul does a great job and it can do it because of the many charitable people who extend a hand to the society in donations. This cannot continue forever and the Society of St. Vincent de Paul should not have to clean up the mess made by the Government.

The Department of Social Protection pays a fuel allowance of €20 per week from September to April. While this is welcome, it only covers a small proportion of a fuel bill and is more of a gesture than a genuine commitment by the Government to help people meet their fuel costs.

The new carbon tax that was introduced this year has increased the price of a bale of briquettes by 10%, a kilowatt hour of gas by 7% and 1,000 litres of fuel oil by 8%. In other words, it will add approximately €43 to a 1,000 litre fill of oil and €41 to the average annual gas bill. How on earth can people be expected to afford these extra costs when so many are struggling financially, which is not their fault?

When the Government announced that it planned to introduce carbon tax it stated that it would protect those most at risk of fuel poverty. I would like to know how this is this being achieved, because those I have spoken to feel the pinch and they do not feel they have been protected by the Government or by the State. Many organisations, such as Age Action, Older and Bolder, The Carers Association, the Alzheimer Society of Ireland, the Society of St. Vincent de Paul, Alone, MABS and many others, called on the Government not to introduce the PSO levy on electricity. This will mean an increase of almost 5%, or an extra €2.73 on a monthly ESB bill. This charge came into effect despite the financial hardship the Government has caused. I welcome the announcement by the Minister for Social Protection, Deputy Éamon Ó Cuív, that he has decided to increase the electricity allowance provided by his Department to cover the PSO levy. This will come as a welcome relief to older citizens, who are very worried about making ends meet. However, this is like robbing Peter to pay Paul, as the money needed to increase the electricity allowance has to come from the Government purse. The question remains, will the new levy generate enough income to justify all the worry and confusion caused by the Government?

Fuel poverty is a very real worry for older people because they are more fuel dependent than any other group in our society. On a daily basis, and particularly on a nightly basis, I meet many older people in their homes and bed-sits who are unable to turn on the electric fire because they are afraid of the cost. Many elderly people rely on a small fixed income and spend a high proportion of it on fuel and energy. They have budgeted every penny for their basic needs. Even a €3 increase in their monthly bill might as well be an increase of €200 or €300. Rising fuel costs have a devastating impact on older people and they simply cannot afford for the price to get any higher.

Many older people spend more time at home and need to be kept warm, especially if they are vulnerable and unwell. Many live in old properties without proper central heating or insulation and many rely on electric heaters, which cost a fortune to run. I am also concerned about elderly people living in flat complexes. I am familiar with senior citizens' complexes run by local authorities where the heating is controlled from 7 a.m. until 11 p.m. This is not acceptable, particularly when many elderly people wake up during the night and tend to walk around in the cold because they are afraid to turn on their heaters. Ireland experiences a high rate of winter deaths compared to other cold European countries. Between 1,500 and 2,000 deaths occur each year. Last winter was one of the harshest on record and this year appears to be going in a similar direction.

The health and well-being of our citizens, young and old, must be safeguarded but this can only be achieved once fuel poverty is eradicated. The Government must wake up to the crisis of fuel poverty among the low paid and the elderly and do all it can to ensure people are not forced to choose between heat and putting food on the table. Is the Government really intent on sending us back to the dark ages of candlelit rooms and our fathers' overcoats on our beds? I commend the motion to the House.