Lynn Boylan (Sinn Fein)
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The issue I raise is the lack of an energy poverty strategy given that the previous one lapsed in 2019. We also still do not have a review of the previous strategy's implementation, as promised to us last year, to determine whether it actually did anything. We do not have the review of the implementation and we do not have a new energy poverty strategy.

I am calling on the Government, yet again, to expedite the strategy as a matter of urgency. I ask the Minister of State for an update on it. I welcome the renewed call by the older persons' charity, Age Action, for a Government energy poverty strategy. A new strategy should have preceded the retrofit plan announced yesterday, or they at least should have gone hand in hand to ensure the retrofit plan was informed by the energy poverty strategy. Likewise, we were promised Central Statistics Office, CSO, indicators to ensure retrofitting was actually reducing energy poverty as well as increasing energy efficiency. However, we have yet to see the CSO indicators for that either. This was on the back of a Department of Public Expenditure and Reform report in 2020 which found insufficient data has been collected on demographics to conduct a social impact assessment on its energy poverty schemes, which include retrofitting. While we know that energy efficiency upgrades are a key part of the strategy to tackle energy poverty, the retrofit plan announced yesterday still seems to fall short of making the upgrades attainable for those on low incomes. It is absolutely critical that we get those CSO indicators so that the retrofit plan and the energy poverty strategy are targeted at those who most need it.

Retrofits are important for bringing down our emissions but they also have to reduce energy poverty. As announced yesterday, the deeper retrofit will still cost €25,000 on top the grant. That is not attainable for many families. Those who are already at the pin of their collar will not consider getting a loan. The cruelty is that they may never be eligible for a retrofit scheme but they will always be liable for the carbon tax. Under the measures announced yesterday, those who are wealthy will be able to benefit from taxpayers' money by getting massive grants. Effectively, we are transferring a huge amount of wealth to those we do not need it.

I am sure that onlookers had high hopes because we were promised a socially progressive retrofit programme, but what we heard yesterday did not meet that bar. If it not based on evidence through CSO indicators and a review of the implementation of the energy poverty strategy, the programme will not achieve its aims.

As regards short-term solutions, I would like to hear the Minister of State address energy poverty. My colleague in the Dáil, Deputy Claire Kerrane, put forward a proposal for a discretionary fund a year ago. At the time, the Tánaiste said the would take this proposal on board and look at it, yet it has not happened. The Society of St. Vincent de Paul has been calling for this for a long time.

I also raise the issue of reforming the public service obligation, PSO, a regressive tax that subsidises renewable energies. The PSO does not take ability to pay into account. The way it is currently designed means that households are subsidising large energy users, such as data centres and pharmaceutical companies, because it based on a peak demand rather than a steady demand. We know that data centres have a steady demand and, as such, once again, it is households that are subsidising the big energy users.

I ask the Minister of State to provide an update on the energy poverty strategy, the CSO indicators and the report of the review of the implementation of the energy poverty strategy that lapsed in 2019.

Ossian Smyth (Dún Laoghaire, Green Party)
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I thank Senator Boylan for raising this important issue and for the timely opportunity to give an update on Government action to alleviate energy poverty.

The national retrofit plan, which was published as part of Climate Action Plan 2021, sets out how the Government will deliver on our retrofit targets and includes a range of matters aimed at supporting those least able to afford to retrofit. A key measure in that regard is a commitment to complete a review of the implementation of the strategy to combat energy poverty in the first quarter of 2022, which is March of this year. Good progress has been made in that regard and the review findings will inform the next steps in the development of a new strategy.

Energy poverty is influenced by a person's income, the energy efficiency of the home and the cost of the energy they use. Government policy, therefore, focuses on supplementing lower income households through the fuel allowance and other payments, as well as providing free energy efficiency upgrades through the Sustainable Energy Authority of Ireland, SEAI, schemes and also through the social housing retrofit programme, for which the budget provided €85 million this year.

The effects of recent energy price increases have undoubtedly been felt across society, especially by those at risk of energy poverty. That is why the Government has acted to support householders through the introduction of an energy measure, which will provide a €100 credit to all domestic electricity accounts, as well new, specially enhanced grants for home insulation, which I will mention later.

Since the publication of the strategy to combat energy poverty, measures to support those at risk of energy poverty have continued to be improved and expanded. Funding for the SEAI energy poverty retrofit schemes has increased dramatically over the period, from €15 million in 2015 to €118 million for 2022. The Minister for Housing, Local Government and Heritage will invest a further €85 million as part of the social housing retrofit programme this year. In addition, the fuel allowance was increased from €20 per week in 2014 and 2015 to €33 per week for 2021 and 2022.That is €924 per year. The Minister for Social Protection has also extended the eligibility criteria for the payment.

The Housing for All strategy has committed to introducing additional rent controls that will result in rental properties having a required minimum building energy rating. Protections remain in place for customers falling into arrears on their energy bills. These measures and improvements have had an impact, with the share of households at risk of experiencing energy poverty falling from 28% in 2016 to 17.5% in 2020 and the proportion of people who report that they are unable to afford to keep the home adequately warm falling from 9% in 2015 to 3.4% in 2020. These are positive indications but we still need to improve how we measure and monitor the number of households that could be at risk. A research network on fuel poverty chaired by the Economic and Social Research Institute, ESRI, has been established to examine the data and metrics needed to improve existing measures for fuel poverty in Ireland. The group consists of representatives from the Department of the Environment, Climate and Communications, the Department of Social Protection, the Sustainable Energy Authority of Ireland and the Central Statistics Office, CSO.

Yesterday, the Minister for the Environment, Climate and Communications also announced further improvements to the supports available to homeowners to retrofit their homes, in line with the commitments in the national retrofit plan. A budget allocation of €109 million has been provided for the warmer homes scheme this year. This will support an increase in the number of free home upgrades, from an average of 177 per month last year to 400 per month this year, helping to reduce waiting times. Separately, grants for cavity wall and attic insulation will more than triple as part of the Government's response to the current exceptionally high energy prices. For instance, in the case of a semi-detached home, the attic insulation grant will increase from €400 to €1,300 and the cavity wall insulation grant will increase from €400 to €1,200. These are highly cost-effective upgrade measures that can be deployed rapidly and at scale this year. It is expected that these works will pay back in less than two years in most houses.

The new grant rates will cover approximately 80% of the typical cost of these measures and will be available to all homeowners. The details I have outlined demonstrate the Government's significant commitments to supporting those at risk of energy poverty.

Lynn Boylan (Sinn Fein)
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I thank the Minister of State for his response. I welcome that the review of the implementation report will be due in the first quarter of 2022. However, the last time we had this conversation the Minister of State promised it would be produced in 2021. I will have to submit another Commencement matter in March if it is not published by then.

The Minister of State said that the ESRI had been tasked with looking at data and metrics. Is that in addition to the CSO indicators that we were promised by the Department of Public Expenditure and Reform, or in place of them? The ESRI supports our call for changes to the way the PSO levy is calculated. It has pointed out that it is a case of households subsidising large energy users. The new plan in the climate action plan is to move to 80% renewables by 2030. If we are subsidising renewable energy, the PSO levy is going to increase. That levy is regressive and does not take into account ability to pay. Altering the way the PSO levy is calculated will not only benefit households but will also benefit small businesses.

Ossian Smyth (Dún Laoghaire, Green Party)
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I believe the ESRI statistics are in addition to the CSO ones but I will get confirmation for the Senator on that. She has asked interesting questions about the calculation of the PSO levy, measuring the difference between those who have steady use and those who have peak use, and whether it is fair for commercial and residential customers. I cannot give the Senator a good answer orally so I will provide her with a written answer on that. She is always welcome to contact my office. However, I take her points.

We estimate that half of the homes in the country have poor attic insulation. Everybody who wants to apply for these grants can get that upgrade for less than €500. That is something that will pay back within two years, with 80% of the cost covered by the State. That is available to everybody, no matter their income. It is a very rapid step and a response to what is happening with energy prices now.