Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

I thank the Senator for raising this important topic and I am responding on behalf of the Minister for the Environment, Climate and Communications, Deputy Ryan.

In 2009, a Government decision was made to rebalance the electricity network tariffs to support large energy users with effect from October 2010. The decision was made at a time when the global financial crisis and domestic banking crisis were both starting to take effect and the competitiveness of large Irish firms, together with the employment implications, was a serious policy issue. The decision was made to help safeguard jobs in some of Ireland's most critical and export-oriented industries at a time when unemployment was rising at a fast rate.

The savings for large energy users were funded by a rebalancing of domestic network tariffs. As part of a review carried out by CRU in April 2022 into electricity price drivers, in line with the Government's national energy security framework the CRU decided to unwind the rebalancing with effect from 1 October 2022. This unwinding reduced an average domestic customer's annual bill by €40 or about €3 per month.

I will now turn to the issue of overcharging. At a recent Oireachtas joint committee hearing, the Government learned that the tariffs recouped from domestic households exceeded what was envisaged in the Government decision. The way tariffs are raised and oversight of same are matters for CRU, which is the independent regulator and which is accountable to the Oireachtas, not to the Minister. The Oireachtas joint committee is the appropriate forum through which overcharging can be dealt with and at which Deputies can raise questions for the CRU.

Departmental officials are engaging with CRU to determine if there is any action required to ensure they have the appropriate powers to ensure people are refunded and this does not happen again. The commitment that households will be repaid the overcharged sum is welcome and this money should be repaid as soon as possible.

The Senator wishes to debate network tariffs, and that is also important.Network tariffs matter because they impact all end users' electricity bills. Electricity network tariffs recover the costs of developing, operating and maintaining the networks from the users connected to the electricity networks. They are set annually by the CRU for the period October to September. The CRU has full and independent responsibility to regulate network tariffs in the interest of energy customers, with an emphasis on providing security of supply, a high-quality service and value for money. It is the Government's position not to interfere with the CRU in respect of its independent areas of responsibility, such as setting network tariffs. For this reason, it was for the CRU to determine when to remove the large energy user rebalancing subvention. The CRU holds public consultations on the setting of network tariffs and seek people's views on proposed tariffs. Should the Senator wish to do so, this is the appropriate means by which to seek a change in network tariffs.

The Government will not be directing the CRU to take a particular course of action in respect of network tariffs. The CRU is entrusted with the responsibility to regulate the electricity market and it must be allowed to do so. The Government is, however, acutely aware of the impact the recent increases in global energy prices is having on households and has acted within its remit. In 2022, the Government introduced a €2.4 billion package of supports. As part of budget 2023, it introduced a package of once-off measures worth €2.5 billion. This includes a new electricity cost emergency benefit scheme through which €600, inclusive of VAT, is to be credited to each domestic electricity account in three payments of €200 between November 2022 and April 2023.