Jerry Buttimer (Fine Gael)
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I welcome the Minister of State, Deputy Chambers, to the House.

Lynn Boylan (Sinn Fein)
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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?

Jack Chambers (Dublin West, Fianna Fail)
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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.

Lynn Boylan (Sinn Fein)
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I thank the Minister of State for his response. I know he is not from the line Department. I find the contradictions in regard to this matter bizarre. When my colleague, Deputy Carthy, raised this matter with the Minister a couple of weeks ago, the latter agreed the subvention is unfair and that the Department had instructed the CRU to unwind it. We then had the situation whereby it emerged, via freedom of information requests, that the Department of Enterprise, Trade and Employment had exceeded the scope of the CRU consultation. This rebalancing was not part of the consultation process, but the Department of Enterprise, Trade and Employment thought it was its role to tell the CRU that the Department did not agree with it. Now, the Minister of State is in the Seanad reiterating the independence of the CRU in the context of how it sets the tariffs. In 2009, the Government told the CRU what to do. Then the Government said it could not tell the CRU what to do and the Minister said the Government told it to unwind the subvention. Now, the Department of Enterprise, Trade and Employment is telling the CRU not to unwind it. Is the regulator independent or not?

Jack Chambers (Dublin West, Fianna Fail)
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I appreciate the Senator's contribution on this matter. I will pass her feedback on to the Minister. Any future rebalancing of network tariffs is a matter for the CRU to consider as part of its independent tariff-setting process. It is open to the Senator to submit proposals on the rebalancing of tariffs directly to the CRU as part of that process, a process in which the Government does not have a role.

Households have been impacted by recent energy price increases and the Government has acted within its remit to limit these impacts where possible. By April 2023, households will have received €600 credit to each domestic electricity account. This is just one part of the suite of measures introduced by the Government to help households as part of the €2.5 million in supports provided in budget 2023. Price increases have affected all aspects of our economy and employers. The Government is acutely aware of the importance of protecting jobs in order to protect families during the energy crisis. This has been key in the design of the temporary business energy support scheme, which will provide up to €10,000 per business per month until spring 2023. This scheme will also support eligible companies, covering 40% of their energy bills, in order to protect jobs and families.