Catherine Murphy (Kildare North, Independent)
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54. To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the expected delivery of a functioning pay as you save scheme to allow for home energy retrofit; when the first applications may be made under this scheme; the reason for the delays in establishing this scheme; and if he will make a statement on the matter. [27093/13]

Pat Rabbitte (Dublin South West, Labour)
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The national energy efficiency action plan and the programme for Government include a commitment to roll out a better energy financing - formerly known as pay-as-you-save - energy retrofit scheme for domestic buildings. The better energy financing, BEF, model proposes that the current suite of Exchequer funded grants for energy efficiency measures will be replaced by a new financing scheme open to households and commercial operators. I stress, however, that it is my intention, in the context of the introduction of a BEF scheme, that the existing grants scheme aimed at those on low incomes will remain in existence.

The key benefit to homeowners of the BEF mechanism is that the scheme will allow them to secure up-front financing for energy efficiency upgrades to their homes and, in the process, remove one of the key barriers to energy efficiency. The principle underpinning the model is that up-front funding will be repaid via savings on customers' energy bills arising from energy efficiency measures. While that is the principle, it will be a challenge to ensure sufficient savings are realised within a short period to cover the costs involved. This is a particular focus of the project board referred to. The consumer will also benefit through the creation of a robust quality assurance process which will protect consumers and ensure high quality workmanship.

My Department, with the assistance of the Sustainable Energy Authority of Ireland, has put in place a project team to design the new retrofit financing scheme under the direction of a project board representing key State and industry stakeholders. The board has available to it expert advice in a range of relevant technical, legislative and financial areas to ensure the delivery of a BEF model designed to suit the Irish context. The board has been engaging widely with stakeholders as part of the development of the scheme and meets on a monthly basis.

It is planned that the design of the scheme will be fully developed over the coming months and that a public consultation process will be undertaken in quarter three of this year. My intention is that a memorandum for Government on the detailed design of the BEF programme will be brought forward in September 2013. Assuming I get approval, it will take a number of months to introduce the necessary technical, administrative and financial pillars to underpin the scheme. While primary legislation will also be required, a scheme will be in place in 2014, in accordance with the Government's commitment set out in the programme for Government.

Additional information not given on the floor of the House.

In the interim, the Government has committed over €44.5 million in Exchequer capital funding for the better energy programme in 2013, which will mainly involve grant based expenditure across better energy homes, better energy warmer homes and better energy communities. I have also recently obtained Government approval to continue the better energy homes scheme into 2014 until such time as the better energy financing programme is ready to commence.

Catherine Murphy (Kildare North, Independent)
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I thank the Minister. We all know the price of heating people's homes is increasing. The very long winter we have had has put additional pressure on people and this links into the question asked earlier about the number of disconnections. However, that may not be the initial target group for this scheme. There is much to be done before the scheme is developed and in place. Does the Minister anticipate it will be in place at the beginning of 2014 so that people can, for example, plan to do the work and have realistic expectations that it can be carried out in the early part of next year?

The Minister talked about the consultation process. What is the timeline for it being put out to public consultation? How long will it take and how will it be evaluated?

Pat Rabbitte (Dublin South West, Labour)
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It will be out in quarter three for a reasonable period. I do not know the figure the Deputy would put on it and I am quite agreeable to agreeing something with her on it. The scheme was promised for 2014 and it will make 2014. I must have regard to the existing scheme. There is, for example, a six-month timeline and I would have to cut off that scheme now if I was to commit to 1 January. That is the time it takes to work through the process. I do not want to do that and I would like to continue the scheme for a number of reasons because there is a cadre of installers and retrofit contractors in place, with some 4,500 people employed, which I want to maintain.

It is uncannily like what happened in Britain. After the first flush of applications, presumably from households minded to be energy efficient, the numbers have fallen off dramatically. Deputy Catherine Murphy is hinting that, if only the scheme was up and running on 1 January, there would be a flood of applicants. I hope she is right because when looking at the energy picture, one of the few tangible things we can do, given that we import our fossil fuels, as Deputy Colreavy said, is to drive the energy efficiency programme, get consumption down and get people to change their patterns of behaviour and save money in terms of import costs associated with fossil fuels. I hope the Deputy is correct but the experience here, in Britain and elsewhere in Europe is that, principally because of the recession, in the case of something that requires householders to put their hands in their pockets to put up a share of the payment for deep retrofit or less than that, they are thinking twice about it just as they are thinking twice about whether to change the car or invest in a new washing machine.

Catherine Murphy (Kildare North, Independent)
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There is much the Minister and I would agree on with regard to the switchover to energy efficiency and refurbishing people's homes so they can save energy. However, people are not foolish. They will take up the option if they see they can get a reasonable return on it. The last time I asked the Minister this question, he spoke about evangelising and recruiting people to this scheme. However, there must be a scheme to which people can be recruited. That is why I believe there should be some enthusiasm about setting out as quickly as possible the shape the scheme will take, so that people can put it into their plans for saving money over the longer term.

Pat Rabbitte (Dublin South West, Labour)
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I have been trying to do the St. John the Baptist role that Deputy Murphy sees for me. We have a scheme. It is a grant-based incentive scheme and we are trying to sell it. Sometimes Deputy Murphy deliberately portrays a pessimistic face to the world about the dreadful things that are wrong, but if she wishes to join forces in going out to sell this to the householders of Leixlip, I assure her the grants will be approved in a very short time so they can get on with it.

The new scheme is a quite complex construction. I hope it will be attractive to the householder because of the principles behind it, but it requires people to be persuaded that they can make significant savings on their energy bills if they engage in retrofitting a housing stock which, quite honestly, leaves a great deal to be desired in this regard.