Darren O'Rourke (Meath East, Sinn Fein)
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85. To ask the Minister for Communications, Climate Action and Environment the degree to which household electricity bills here are more expensive than the European Union average; the reason for this and the measures that he will take in advance of winter 2022 to address electricity cost and energy and electricity security of supply challenges; and if he will make a statement on the matter. [28788/22]

Darren O'Rourke (Meath East, Sinn Fein)
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I ask the Minister the degree to which household electricity bills here are more expensive than the European Union average and the reason for this, the measures he will take in advance of winter 2022 to address electricity costs and energy and electricity security supply challenges, and if he will make a statement on the matter.

Eamon Ryan (Dublin Bay South, Green Party)
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The Deputy is correct that this is a critical issue for our people. The most important factor affecting electricity prices in Ireland is the continuing upward trend in international gas prices, which is affecting electricity prices across Europe and the world. Nevertheless, it is true that Ireland has higher electricity prices than the EU average. In addition to Ireland's fossil fuel dependency, which is one of the reasons, it is due to a number of other factors, including geographical location, economies of scale and high population dispersion. In the longer term, deepening our interconnection with the EU energy market via increased interconnection and realising the full potential of our indigenous renewable energy resources is essential to addressing these structural issues.

The Government has already taken action, including: the €400 million electricity costs emergency benefit scheme that was introduced this year; increases to fuel allowance so that, for this fuel allowance year, recipients receive a total of €1,139 compared to €735 in 2020-2021; and targeted energy efficiency measures, which are critical. This year, 58%, or some €203 million, of the total Government retrofit budget of €352 million will be spent on dedicated energy poverty retrofit supports and local authority retrofits. This includes a new targeted €20 million scheme for the installation of photovoltaic, PV, panels for households that have a high reliance on electricity for medical reasons, and a reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.

In April, the Government published the national energy security framework, NESF. Response 6 of the framework tasks the Commission for Regulation of Utilities, CRU, with implementing a package of measures to enhance protections for financially vulnerable customers and customers in debt by quarter 3 of this year.

Darren O'Rourke (Meath East, Sinn Fein)
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There were price rises again yesterday and we can expect the future to look the same. The Minister knows better than most that the price of a therm of gas was approximately 40 cent for a long time but there is a new normal upon us now, and estimations are that it will level off somewhere in the region of €2.50. There is a huge difference between 40 cent and €2.50. While there are mitigations, for the foreseeable future we are going to live in a reality where the price of gas is at €2.50 a therm or higher. That is the new reality and it is going to force people into poverty. We need a response from the Government and it needs to be aligned with these increases in costs. We need to protect people. The Government needs to go beyond the measures that it has introduced or else we will see more and more people driven into poverty. We heard from some of them yesterday on “Morning Ireland”, which was a perfect and depressing example of it.

Eamon Ryan (Dublin Bay South, Green Party)
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The Deputy is right. The price of gas has gone beyond compare and up to higher levels. For more than 20 years, it was fairly steady and at a price range typically measured in pence sterling because that is where our gas market is priced from. As the Deputy said, it has gone from some 40 or 50 pence per unit up to about 180 pence in the UK pricing yesterday. I have just come out of a meeting with the European Commissioner for Energy, Kadri Simson. I understand the members of the committee will be meeting her later, which is a good chance to question her on the prospects. From listening to her this morning, this is an ongoing and real crisis. Just in recent days, we have seen that gas to the Dutch market is likely to be cut off, as I understand it, and it is something similar with the Danish market, and even in the German market restrictions are coming.

In all likelihood, as Europe switches away from the use of gas, there is an underlying need for us to do so for climate reasons but also now for security reasons. As much and as fast as we do that, given the switch away from Russian gas, and 150 billion cu. m of gas were imported from Russia into Europe last year, the commission has said that two thirds or three quarters of that cannot be replaced. That is why, first and foremost, we have to push the development of our own renewable power and really focus on energy efficiency as a way of saving on bills, and also introducing even further measures to try to help consumers through this difficult time.

Darren O'Rourke (Meath East, Sinn Fein)
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I agree entirely on the transition we need to make. There is huge opportunity and I am sure some of it will be covered later today in terms of what the Government can do to achieve our transition to renewables more speedily. However, this winter, families will be facing increases of over 30% in electricity and gas prices. That is on top of the increases we saw for dual fuel users of €800 in January 2022 when compared to January 2021. Families will not be able to cope. When we meet with St. Vincent de Paul or the Money Advice & Budgeting Service, they talk about people who are self-disconnecting for fear of the shame of actually being disconnected. Sinn Féin has called for a mini-budget and for additional measures in terms of fuel allowance, a discretionary fund and cash payments for people in need. The Minister knows very well that we need to see action before October. Energy providers are indicating they will be increasing prices during the summer and in September, which is going to drive people further into poverty. We need to see a response from the Government.

Eamon Ryan (Dublin Bay South, Green Party)
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I do not agree with the approach being advocated by Sinn Féin and I think the Government approach is better. We are sitting down and talking to a whole variety of partners, such as the social partners, Social Justice Ireland and the other groups who are part of the social pillar in the National Economic and Social Council, as well as the environmental pillar and also unions and employers. We work best in this country when we work in collaboration. I think it is better for us to engage in that process, to look to the budget in October and to look at what social welfare or other measures may be needed to help us through what is going to be a very difficult period in this country and in every country across western Europe. Our problem is that we have that very high use of fossil fuels. We are one of the countries that is most dependent on imported fossil fuels. The fundamental, most important thing we need to do, as well as having those interim, short-term, immediate measures to help people through, is to make the switch away from the use of those fuels. That is what serves the Irish people best.