Noel Coonan (Tipperary North, Fine Gael)
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Question 191: To ask the Minister for Communications, Energy and Natural Resources the communities most likely to be affected by increases in the prices of electricity and gas; the measures in place to protect these communities from the predicted rise in costs in view of the upward trend in international fuel costs; and if he will make a statement on the matter [25084/08]

Eamon Ryan (Dublin South, Green Party)
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The regulation of ESB electricity tariffs and BGÉ gas tariffs is the statutory responsibility of the Commission for Energy Regulation (CER) under the Electricity Regulation Act. I have no function in setting these tariffs. The CER has publicly indicated that it expects the increases in international fuel prices to have a consequential impact on electricity and gas tariffs in the autumn. Rising energy costs are a major concern for all sectors of the economy and for consumers. It is a major concern for the European Union and globally. There are limits to what Ireland can do in relation to global wholesale gas, oil and coal prices. The Government's Energy Policy White Paper and the Programme for Government set out the actions being taken to deliver security, sustainability and competitiveness of energy supply.

To reduce our dependence on imported fossil fuels and so lessen the impact of high prices, we must use energy far more efficiently and increase the energy generated from renewable resources. We have set ourselves ambitious targets of generating 15% of our electricity needs from renewable sources by 2010 and 33% by 2020. Estimates suggest that we achieved 10% in 2007 and are on course to reach or surpass our 2010 target.

Householders can individually reduce their dependence on oil or gas for their heating needs by investing in renewable heating technology such as solar panels, wood pellet boilers and heat pumps. The Greener Homes Scheme provides grants to householders to assist with this investment. In addition, the Power of One Street initiative has clearly demonstrated that householders can save in excess of 20% of their energy costs by becoming more energy efficient.

Those living in older homes tend to have higher heating costs because of the poor insulation standards of their homes. With rising energy costs, this can have a significant effect on the health and quality of life for low-income households. Sustainable Energy Ireland's (SEI) Low Income Housing Programme was established to systematically address the problem of fuel poverty. Its core strategy is to improve the energy performance of low-income homes through its Warmer Homes Scheme. I have already increased the budget for the Low Income Housing Programme to €4 million in 2008 and this will enable SEI to fund insulation upgrades for 4,000 vulnerable households this year.

I also launched the pilot Home Energy Saving Scheme, which is incentivising householders in the pilot areas to improve the energy efficiency of their homes through insulation upgrades and other measures. SEI estimates that those who avail of the scheme can expect to save in the region of €500 on their energy bills every year.

The CER also plays a role in protecting vulnerable customers in the energy markets. Under the European Communities (Internal Market in Electricity) Regulations 2005 the CER was tasked with ensuring that there are adequate safeguards to protect vulnerable customers, including measures to help customers avoid disconnection. The CER has set out guidelines for the protection of household electricity and natural gas customers, particularly the elderly, customers relying on life support equipment and those with disabilities.

Energy efficiency has a significant role to play in reducing energy costs for the enterprise sector. Large companies as well as small and medium size enterprises can very rapidly reduce their energy bills by 10%, while significantly greater savings are possible through economically rational investments and participation in the various energy efficiency programmes run by SEI. These programmes are tailored to the specific needs of businesses, large and small. Through these schemes SEI assists companies in identifying and implementing actions to mitigate the impacts of rising energy costs. In that context, funding of €4 million for SEI's industry energy efficiency programme has been provided this year, allowing SEI to significantly increase the coverage of their programmes. To further assist the business sector, the Minister for Finance also introduced new tax incentives this year to support companies to purchase the most energy efficient equipment for use within their business.