Cian O'Callaghan (Dublin Bay North, Social Democrats)
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Is the Government aware that people who are reliant on district heating systems are paying exorbitant prices, well above the high prices being paid by everyone else? While district heating systems are sustainable and should be encouraged and promoted, they are placing a major financial burden on residents. This is not acceptable. I will give an example of the exorbitant costs. In one area in my constituency residents estimate that the cost of taking a shower is €12. Households that have cut down sharply on the use of hot water and are washing by filling basins rather than taking showers are still seeing huge increases in charges. Those charges have tripled in just one month. My understanding is that district heating systems are charged commercial rates rather than residential rates for gas due to a failure on the part of the Government to introduce regulations to protect households. Will the Minister of State confirm whether this is the case?

Residents, some of whom live with life-threatening illnesses, are coming down with infections. This is leading to costly visits to their GPs because they cannot access basic levels of heat and hot water. Residents in one part of my constituency are in a prepay district heating system. They are allowed to go into arrears of €10 and are then cut off entirely. They have no alternative. They cannot opt out and move to another system or provider. They have no choice. This means that some residents are living without heat, hot water or even fridges. This extreme situation cannot be allowed to continue and must be addressed as a matter of urgency. Replies to parliamentary questions I have submitted to date on this matter suggest the Government intends to address this issue at some point in the future. No timeline has been given, but, potentially, it might happen in a year's time. This is not acceptable.

It is almost 100 years since local authorities began installing baths in local authority housing in order that social housing tenants could wash regularly without needing to resort to using basins in their kitchens. We are now back in a situation where social housing tenants are resorting to using basins to wash. They cannot afford to have showers because the Government has not addressed this issue. This is utterly unacceptable.

Will the Government take action as a matter of urgency to protect households reliant on district heating systems? What is the Government going to do to sort out this problem? When will action be taken? What timeline is the Government working to? Will the Government rectify this matter urgently - before Christmas - in order that people living in these dire circumstances can access the basics they need to live dignified lives? Does the Minister of State agree that the current situation is completely intolerable and unacceptable? Does he agree it cannot be allowed to continue? When will the Government act to bring regulations or legislation to address this matter?

Frank Feighan (Sligo-Leitrim, Fine Gael)
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I thank the Deputy for raising this matter. The Government is supportive of district heating because it contributes to the diversification of the fuel supply for heat and decarbonising the heat sector. Across Europe, the term "district heating" is generally applied to networks that serve neighbourhoods, towns or cities and cover a mixture of customers including public buildings, industrial and commercial sites and residential units. District heating networks can offer flexibility in fuel choice and the ability to adapt to changes in the economic and policy landscapes. They may see different combinations of energy resources used at different times during the lifetime of district heating network. District heating networks also offer the potential to expand the use of renewable energy sources and to assist with meeting decarbonisation goals. Group heating schemes are smaller scale operations that generally supply an apartment block or housing estate, as the Deputy outlined. In general, these schemes are supplied by natural gas purchased at a commercial rate by the energy system operator. Customers are supplied with heat, the sale of which is not currently regulated.

The district heating steering group was established under the Climate Action Plan 2021 to ensure structured development of district heating. Analysis of the regulatory needs of the district heating sector has been undertaken by the economic and consumer protection working group working reporting to the district heating steering group. As part of that analysis, the issue of group heating schemes has been considered and further consideration will be given to including group heating schemes within a consumer protection framework. Under SI 350 of 2022, which transposed the 2018 renewable energy directive, the Commission for the Regulation of Utilities, CRU, has been appointed as regulator of district heating networks and will need to develop an extensive programme of work to consult upon and develop the regulatory regime. It is expected this work will commence following the submission of the district heating steering group report to the Government.

The Sustainable Energy Authority of Ireland, SEAI, has initiated a programme of pilot feasibility studies to examine the technical potential of moving group heating schemes that are fuelled by natural gas to renewable energy sources. The initial results of this work are expected to be available in the new year. More broadly, to help to alleviate the impact of the rising costs of living, the Government has put in place a series of measures and has made funding of €2.4 billion available. Further once-off measures worth €2.5 billion were announced in budget 2023, including the electricity costs emergency benefit. Primary and secondary enabling legislation has been put in place, with the first of three €200 electricity credits, inclusive of VAT, being paid to more than 2.2 million domestic electricity accounts from November 2022. While not all consumers use gas, electricity is supplied to all households, ensuring that this is a universal benefit.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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I thank the Minister of State for his comprehensive reply. There is a lot of useful information in that and that I had not received to date, so I am grateful for it and it is helpful. I understand that in a normal situation things take time and go through processes, and before the current crisis this would have made sense. The issue I have is that the current crisis around how commercial gas rates have increased and with prices being at a much higher rate than residential gas rates has left people in district heating systems in a particularly vulnerable situation that is intolerable. There needs to be an emergency response on this from Government to protect these residents. That is what I am asking for. I appreciate the longer process and that would have made sense before the events of this year, but for people who cannot shower, who are living in some very dire situations, and we are talking in particular about how this is affecting many people on low incomes, in social housing, and with serious illnesses. This is an intolerable situation that needs an urgent response now. That is what I am asking for.

Second, the Minister of State's reply mentions the measures the Government has brought in in terms of the electricity credits and so forth. The reply I received from the Taoiseach last week seemed to indicate some people in district heating systems would not have been benefiting from these measures. Is there clarity on and certainty that people in district heating systems are benefiting from those measures?

Frank Feighan (Sligo-Leitrim, Fine Gael)
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I thank the Deputy. The issues affecting customers of group heating schemes is primarily a matter for the consumer and the energy provider. The package of financial supports made available under budget 2023 includes the electricity emergency benefit scheme and will assist vulnerable households in the context of the cost of living. I do not have the detail regarding clarity but we will be able to work on that if the Deputy sends an email to the Minister for the Environment, Climate and Communications, Deputy Ryan, or to me. I have no problem with determining what is the best outcome.

Unfortunately, all EU member states have been affected by recent high global energy prices to various degrees. These impacts have been felt, especially by vulnerable citizens and small and medium enterprises that are striving to recover from the Covid-19 pandemic. Nevertheless it is important to have a clear and shared understanding of the current situation. The Deputy has rightly said we need to protect these residents, and I agree we need to do as much as we can to protect them and get them out of the vulnerable situation they find themselves in.

A central part of the solution lies with cost-effective energy efficiency measures and accelerated deployment of renewable energy sources. It is very important we proceed swiftly with the treatment of the Fit for 55 package to achieve climate neutrality by 2050, and a well-managed energy transition is part of the solution to keep prices affordable and predictable. The Government is working to expand district heating in Ireland to contribute to decarbonisation goals and to provide improved comfort and energy efficiency in homes. An expansion of district heating can also create skilled jobs in the areas of district heating systems, construction, and network operation and maintenance. An appropriate regulatory framework under EU legislation that also takes into account the Irish operational environment will be developed with advice from the district heating steering group to ensure protection and transparency, including for users of group heating schemes. I thank the Deputy for raising this important issue.