Dáil debates

Thursday, 12 November 2020

Saincheisteanna Tráthúla - Topical Issue Debate

Commission for Regulation of Utilities

5:20 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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Both Deputy Pádraig O'Sullivan and I are delighted that you allowed us to raise this hugely important issue, a Cheann Comhairle. The Commission for Regulation of Utilities granted a 66% increase to the gas installers of Ireland and a 20% increase in their registration fees. We saw the regulator taking to the airwaves to advise on the safety issues concerning gas, and all of the media outlets highlight and bring to the public concerns about gas.

In 2015 the Joint Committee on Transport and Communications made clear recommendations to Government to ensure there was proper regulation and that there was no black market in gas installation. We have seen the very powerful television advertisements on it. Now the Commission for Regulation of Utilities, CRU, is granting a 20% increase on the annual registration fees, as well as the 66% increase in the cost of certificates. It is completely wrong both on a health and safety front and in the context of the advice during the Covid pandemic about people not entering houses, meaning that people are reluctant to have anybody at all come into their houses. The Commission for Regulation of Utilities should review this. It granted the increase with immediate effect; normally there is a run-in period. It shows little regard for the concerns of the gas installers or for health and safety.

5:30 pm

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
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Deputy Michael Moynihan has covered most of the basics on the issue. I am sure we are all familiar with the television advertisement featuring Daniel O'Donnell warning us to use only registered installers. While it is a funny advertisement, it has the important message encouraging people to use registered gas installers and not to get untrained or unregistered tradesmen to do these important jobs. In this House in recent weeks, we have seen the dangers of leaks, but nothing is more serious than a leaky or deficient boiler.

As Deputy Moynihan said, in 2015 the Joint Committee on Transport and Communications report asked for pricing arrangements or subscriptions to the Register of Gas Installers of Ireland, RGI Ireland, to be reviewed. It was also recommended that the cost of the certificates issued for servicing appliances be reviewed to ensure they were equitable. Five years later, RGI Ireland is now increasing the cost of membership of RGI Ireland by 20% and the cost of certificates by 66%. If a plumber were to issue 50 certificates in a week, which I am told is a conservative estimate, that is an additional cost of €100 a week or €400 a month to that plumber, which is a significant price hike.

I fear that an increasing number of tradesmen may ignore the certification process leading to more unlicensed providers servicing boilers with the Daniel O'Donnell sketch becoming a reality. RGI Ireland estimates that approximately 15,000 unlicensed boiler or leak repair jobs are done every year. The decision by the Commission for Regulation of Utilities to increase membership and certification costs to this extent will have the adverse effect of driving increasing numbers of people to unlicensed individuals. While the Minister may have no role in overturning this decision, some other method of funding needs to be considered to avert this problem.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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On behalf of the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, I thank the Deputies for providing the opportunity to discuss the important topic of gas safety. Both of them articulated how important gas safety is from a health and safety perspective. We all know the television advertisements, which are very effective.

The Commission for Regulation of Utilities is Ireland's independent energy regulator and has statutory responsibility for the regulation of gas installers with respect to safety. The Minister for the Environment, Climate and Communications does not have any role or function in the regulation of gas installers or the setting of associated fees.

The process whereby the Commission for Regulation of Utilities addresses this important aspect of its safety remit is under section 9 of the Electricity Regulation Act 1999, as amended. This sets out that the Commission for Regulation of Utilities has responsibility to regulate the activities of gas undertakings and gas installers with respect to safety.

In 2015, having carried out both a consultation process and a public procurement process, the Commission for Regulation of Utilities appointed the Register of Gas Installers of Ireland, known as the RGII, as the safety supervisory body to carry out this function on its behalf for the seven-year period from 2016 to 2022. Any person wishing to carry out gas works, as defined under SI 225 of 2009 and SI 299 of 2011 is required by law to register as a registered gas installer with RGII. It is an offence under the Act for an individual or company to portray itself as a registered gas installer unless they are registered under this scheme. I take Deputy O'Sullivan's point that unlicensed people are still apparently carrying out this role.

The Commission for Regulation of Utilities recently approved an increase of €1.20 for the price of registered gas installer certificate No. 3, effective from 1 October 2020. This increases the price from €1.80 to €3. This is the first certificate price rise since the start of the registered gas installer scheme in 2009 and it affects certification No. 3 only. As I have stated, the Minister for the Environment, Climate and Communications does not have any function in this matter which is solely a matter for the Commission for Regulation of Utilities.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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What consultation did the Commission for the Regulation of Utilities carry out with the industry in coming up with this increase? It is important for the Minister of State to highlight to the Minister, Deputy Eamon Ryan, that a number of Deputies have raised this issue in the House. It is causing serious concern.

Following the consultation in 2015, why are the recommendations of the joint committee not being implemented? Does the Minister accept that making a decision on 9 October and backdating it to 1 October for certificates coming into the winter period, a time when people would be looking for these certificates, is completely unacceptable? There should have been proper consultation. I believe the Minister should write to the Commission for the Regulation of Utilities and ask it to reverse this charge. I believe it will cause undue hardship and lead to black market activity.

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
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I support what Deputy Michael Moynihan has said. I encourage the Minister of State to relay back to the Minister, Deputy Eamon Ryan, that he should contact the regulator in this regard. An increase from €1.80 to €3 does not sound significant, but to a plumber who might be doing 50 jobs a week, which is a conservative estimate and many plumbers could possibly be doing up to 100, it is a significant cost. The plumber will either have to bear the cost himself or pass it on to the consumer. Given the climate we are in, Government policy is about encouraging people to have their houses retrofitted and improving the building energy rating, BER, of their homes, getting boilers fixed is a positive step. While the carbon tax we are introducing it is unpalatable for many, much of take from that tax will be accrued and directed specifically at those types of projects, which is to be welcomed. However, this levy on plumbers, insignificant as it may seem to some, further compounds the increase in carbon tax. In that respect it runs contrary to what Government policy is trying to achieve and moves people towards the unregistered installers that we are trying to prevent.

RGI Ireland takes in €1 million a year in membership costs alone from all the plumbers in the country and approximately €600,000 from the certification process. There is a role for Government, whether through a public service obligation or some other route, whereby it should be possible to fund this shortfall.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I again thank Deputies Pádraig O’Sullivan and Michael Moynihan for giving me the opportunity to respond on behalf of the Minister. I reiterate that the Minister has no function in the appointment of the Register of Gas Installers Ireland as the safety supervisory body for gas. That being said, the Minister is, of course, concerned with anything that could potentially lead to increased costs being passed on to consumers. However, it is important to ensure consumer protection and safety.

The scheme is required to operate on a not-for-profit basis and a self-funding model. The CRU receives no Exchequer funding and is financed through the levy on industry we just discussed. As I am sure the Deputies are aware, the Commission for Regulation of Utilities is accountable to a joint committee of the Oireachtas which provides an appropriate forum for all Deputies to raise concerns such as this one directly with the regulator.

I will also raise the points made by both Deputies with the Minister and ask him whether it comes within his remit to write to the commission about this issue.