Seanad debates

Wednesday, 8 February 2012

Energy (Miscellaneous Provisions) Bill 2011: Second Stage

 

1:00 pm

Photo of Deirdre CluneDeirdre Clune (Fine Gael)

I welcome the opportunity to speak on this Bill. The most important feature of it is that it focuses on reducing our energy demand by introducing energy efficiency. I agree with Senator Crown that the Minister has one of the most challenging Departments as we attempt to meet the needs of business customers as well as domestic customers. The cost of energy for businesses has continually been cited as onerous and excessive and has affected our competitiveness, particularly when looking at export countries that are most important for the future economic well-being of the country.

The focus on energy demand reduction targets is positive if we are to meet our EU goals by 2020 and the 20% energy reduction is part of that. Looking at energy efficiency means retrofitting buildings and this Bill seeks to address that. The energy demand reduction targets for electricity companies, gas suppliers and distributors will now be put in legislation and that is to be welcomed. The Institute of Economic Affairs did a report on the value of introducing a retrofit programme, looking at the almost 1.2 million buildings in the country that could benefit from such a programme. It is always cheaper to save energy than to buy it. Insulating and upgrading energy efficiency of buildings can save the average household €1,100 per annum and will bring housing stock up to building regulation standard. One of the most successful programmes we were obliged to introduce was the BER programme. It resonates with people and they understand what it means, that it is important that any dwelling would reach a certain standard and cannot be sold unless it has certification. It is important all these changes will be done with minimum cost to the Exchequer and that is where the fund mentioned by the Minister will support the delivery of efficiency improvement programmes and it will be operated on a pay as you save framework.

I welcome the proposals on energy security. This is pushing at an open door, this is appreciated across the board. Last week I referred to a report produced by the Irish Academy of Engineering on energy. It contained interesting insights, particularly that our level of energy consumption has fallen since 2007. We hope it will increase but we must consider if we need to invest in developing more energy production schemes when we should be trying to maximise the efficiency of existing structures. We must also look at supports for renewable energy sources. Will they cost us? The subsidy for renewables must be considered in a practical manner. The OECD has recommended we move away from wave energy, with subsidies to it being phased out as it is seen as not cost effective.

We are in a different era now and that is the challenge to the Minister as we move forward to work within our commitments under Kyoto and the EU umbrella. Those targets must be met but we must balance the cost to business and domestic users in this country. It is a real challenge for us all as the economic climate changes.

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