Seanad debates
Thursday, 16 February 2023
Nithe i dtosach suíonna - Commencement Matters
Energy Policy
9:30 am
Lynn Boylan (Sinn Fein) | Oireachtas source
I wish to raise an issue that has been in the news for the past number of weeks. In 2009, a Government memo was sent to Cabinet seeking the Government to approve the permanent rebalancing of network tariffs towards large energy users, and that rebalancing was to be paid by domestic household consumers. The Commission for Regulation of Utilities, CRU, made a decision, correctly, last year to unwind that, but it stopped short of rebalancing the network costs in favour of households.
We know that there was an error in the calculation of the subsidy so that the ESB is going to refund €50 to each household, but that only scratches the surface of the level of subsidy households have been paying to large energy users. We know a further €600 million was levied on households to give large energy users a dig-out. When are businesses going to be asked to repay the favour? These large energy users are highly profitable companies but we are in a cost-of-living crisis, people are in arrears and the number of households has increased, so it is time for the tables to be turned. Will the Minister direct the CRU, just like what was done in 2009, to rebalance the network tariffs permanently towards domestic users to be paid for by higher prices on large energy users?
By my maths, each household would be entitled to a refund of an additional €274.36 for the €600 million, given there are 2,186,854 domestic accounts in this country. Most people would welcome €324 instead of the €50 they are currently in line to receive. I know that is the case from my social media account and from meeting people as I walk along the street. They are asking when they will get their €50 back from the ESB Networks and why it is only €50 because they have been ripped off for the past 12 years.
The Minister of State is probably going to read from a script, mention the rebalancing of the network costs, and talk about windfall taxes and the negative public service obligation, PSO. It is welcome those measures are happening but that is not what we are here to discuss. They do not do anything to redress the unfairness of the large energy user subvention that was baked into the cost of energy. We cannot do anything about the wholesale costs of electricity but we can ensure the regulator regulates the network tariffs. The PSO levy is going into negative this year. Like the subsidy, however, households once again pay a disproportionate amount of the PSO relative to businesses because it was designed to allow businesses pay less to the PSO levy than households.
Will the Minister of State explain why the 2009 decision, if it was an emergency decision, and it is one I do not agree with, was allowed to continue for 12 years? Now, when the tables have turned and these businesses are in a profitable position but the emergency is affecting households, and knowing we are in a cost-of-living crisis and that the Government is going to announce measures to help people in the coming days, will the Minister of State rebalance the network tariffs in favour of domestic households?
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