Pa Daly (Kerry, Sinn Fein)
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82. To ask the Minister for Environment, Community and Local Government the measures he is taking to address the fact that 300,000 households are in arrears on their energy bills; and if he will make a statement on the matter. [49202/25]

Pa Daly (Kerry, Sinn Fein)
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Household bills are 70% above what they were in 2022 and the value of arrears has jumped by almost 50%, even with the electricity credits each winter. There are 300,000 people in arrears. The Government has said it does not want electricity credits to be the new normal but the rise in prices and the number of people in arrears are an emergency and not normal either. This demands an emergency response.

Alan Dillon (Mayo, Fine Gael)
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I thank the Deputy. I convey the apologies of the Minister, Deputy O'Brien. He is at an EU Environment Council meeting on the 2040 environmental targets. We sought a swap but due to the Dáil resuming that was very difficult.

On the Deputy's question, the Government has made a number of important commitments in respect of addressing the continued high cost of energy. The programme for Government acknowledges the increased energy cost pressures on households and businesses and commits to bringing forward taxation measures to help contain energy costs. The Government approved an extension of the 9% VAT rate currently applied to gas and electricity by a further six months to October 2025 at an estimated cost of €85 million with the net benefit to households from 1 May to 31 October being approximately €26.60 with respect to electricity and €20.28 with respect to gas. This is traditionally 13.5% but has been 9% since 2022 in response to the energy price crisis.

In June 2025, my Department established the national energy affordability task force to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewable commitments and protecting security of supply and economic stability. A key output of this task force will be to develop an energy affordability action plan which will identify a comprehensive range of solutions, including demand-side solutions for households to allow them to adjust their energy demand and avail of low-cost renewable energy. Task force members are currently working to finalise the preparation of an interim report, which will set out measures for consideration as part of the budget 2026 process.

Pa Daly (Kerry, Sinn Fein)
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It is more than unfortunate the Minister is not here in the middle of a cost-of-living crisis to address the concerns of people who are really struggling in an emergency.

Over the summer households have been hit with a spate of emergency hikes from Energia, Flogas, Pinergy and SSE Airtricity. They have been told they can expect another at least another €200 to be whacked onto their annual energy bills. In the first week back in the Dáil the Minister does not show to tell us what he is going to do about it. All we know is the supports that have been there over the last number of years are going to be ripped away despite Irish energy costs being the highest in Europe, at €500 above average and 70% above 2022 levels. When I asked the Minister via parliamentary question what impact he thought the withdrawal of energy credits would have, I was told it was not a matter for the Minister but for the CRU. I find it very hard to believe the impact of policy choices is not the responsibility of the Government, as outlined in the letter from the Leas-Cheann Comhairle, and that it has no duty to consider and analyse its efforts. The CRU might be surprised to hear about this.

Alan Dillon (Mayo, Fine Gael)
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We have as a Government delivered over €3.3 billion in credits to over 2.3 million households in recent times, but we need to be strategic with this upcoming budget. Once-off measures are certainly not a long-term fix. That is why, as I said earlier, we have established the national energy affordability task force which is preparing an interim report to inform budget 2026. We are also looking at structural reforms, not just short-term relief.

As I said earlier, we have extended the reduced VAT rate on energy to help households directly and we are very much focused on targeted sustainable measures, not just repeating the same approach. We are also investing record funding in energy upgrades that will permanently lower bills for many of those at most risk.

Pa Daly (Kerry, Sinn Fein)
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The Government could not have had a more targeted measure than the energy credits that we have had for the last number of years and people are facing the same if not higher energy prices now. The Government continues to blame everyone apart from itself for it. The costs are due to political choices about whose energy needs get prioritised, who pays and who is protected. However, the Government has chosen to prioritise the energy needs of data centres and the profits of energy companies rather than ordinary people who are trying to keep the lights on and stay warm. If we want to bring down energy prices in the long term, the market needs a radical overhaul. We need major reform of the status quo with new measures to hold the energy companies to account rather than the blatant profiteering that has been taking place. We also need a fair funding model for our grid and the renewable transition rather than the Government's regressive approach which makes households shoulder a disproportionate burden of the cost of the network charges and the PSO levy rather than placing the burden on the data centres, which are, relatively speaking, let off the hook. It is possible to change this and I ask the Government to reconsider and redress the unjust burden placed on small businesses and households.

Alan Dillon (Mayo, Fine Gael)
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In the context of what we are discussing, the reality is that Ireland operates in a liberalised EU energy market where prices are set commercially, not by governments. That said, we are not passive observers in this regard. The CRU has statutory powers to oversee suppliers' conduct. We have recently strengthened its protections for consumers this winter. On profits, I accept that energy companies have posted strong returns recently but it is worth noting that ESB profits are being reinvested into infrastructure and renewables. We need to ensure that we continue to invest in our grid and that we have security of supply. The Minister, Deputy O'Brien, has written to many of the suppliers directly and has scheduled meetings to push for stronger supports for many householders feeling the burden of increased prices.