Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

Senator Boyhan asked about the rate of VAT and if we are giving money to electricity consumers, on one hand, and taking it away through VAT, on the other. We reduced VAT on electricity and gas at great expense to 9% from 13.5%, and that is being extended to 30 April.

Senator McGahon pointed out that this is an important measure that will really help people. I have spoken directly to people who have said they found it a great benefit to get this money into their accounts. It takes many tens of thousands of people out of arrears, but it is being wound down. The price of electricity has come down significantly but it is still very high in comparison with what it was before the war. In the first winter we provided €600 in electricity credits, in the second we provided €450 and this winter we are providing €250, so it is being wound down.

Senator Horkan mentioned scam texts. I remind the general public that, just like the last two sets of electricity credits that were provided over the past two winters, the credits will be applied automatically to their accounts. If they receive a text saying that they need to click here to receive their money or if one of their relatives gets such a text, I ask them not to click on the link. They do not need to do that. It is automatically applied, regardless of they are billpay customers or have a prepay meters. It is already applied to prepay meters as well. I have a prepay meter, so I have direct experience of that.

Senator Warfield mentioned that we need more than just the payment of electricity credits to people in winter. This is a universal payment that reaches everybody. We make sure that it reaches those people who fell through the cracks, who would not qualify in a targeted scheme, but we also have targeted energy poverty measures. For example, this year we increased the working family payment, increased the payment for a qualified child for welfare recipients who have children and widened the availability, the eligibility criteria, for the winter fuel allowance. The living alone allowance was also increased. Those are permanent changes, not one-off changes, and they are directly targeting people who may be living in energy poverty. That is to directly meet that need.

In addition, €500 million, the largest amount ever, has been allocated in respect of retrofitting. The low-cost loan scheme is now available. This means that if you get a grant and you cannot meet the capital requirements of the other portion, you can borrow money. Now, as you walk around the country and look at people's roofs, you will see solar panels everywhere. Every school in the country is receiving free solar panels. One hundred families across Ireland are installing solar panels every day. We are having a solar revolution. It is now beginning to really contribute towards our energy security and lower people's bills all around the country. Giving people some money for one winter is not the answer; it is a temporary fix to deal with elevated electricity prices. We have a large suite of measures that will work in the long term to reduce the need for electricity in the first place.