Noel Coonan (Tipperary North, Fine Gael)
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Question 146: To ask the Minister for Communications, Energy and Natural Resources his plans to provide extra funding for people following the second increase in gas prices of up to 8% from January 2009; the reason for the price hike in view of the fact that gas prices are falling on world markets; his further plans to deal with this increase; and if he will make a statement on the matter. [37247/08]

Eamon Ryan (Dublin South, Green Party)
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Responsibility for the regulation of electricity and gas prices is a matter for the Commission for Energy Regulation (CER) which is an independent statutory body. I have no function in setting or regulating energy prices. I am, however, advised that the Commission has commenced phase two of its tariff review of Bord Gáis Energy Supply. Any variation that may be applied to gas tariffs from 1 January 2009 is a matter for the CER based on the tariff setting methodology applied by the Commission which will take account of all relevant global and market factors.

I share the Deputy's concerns about the impact of energy costs on vulnerable members of society. Government policy has focused in recent years on increasing primary social welfare rates to ensure that people on social welfare can meet their basic living costs, including heating costs throughout the year. Since December 2001, overall inflation has increased by 28% while energy product prices have increased by 74%. Over the same period increases in social welfare payments have been between 71% and 88%. Budget 2009 increased the fuel allowance by a further €2 per week and extended the season by 2 weeks to 32 weeks. These improvements will bring the annual cost of the scheme to €205 million. The fuel allowance is paid to almost 300,000 people, while 357,000 receive electricity or gas allowances at an estimated cost of €170 million this year i.e. a total cost of €375m.

Increasing the social welfare payments is one strand of Government policy that is tackling the root causes of energy affordability. Improving the thermal efficiency of the housing stock is just as important, and seeks to resolve the underlying or long-term affordability issues. I have increased the allocation for this year to the Low Income Housing Programme administered by Sustainable Energy Ireland (SEI) to €5 million. The Programme's primary focus is the Warmer Homes Scheme which provides energy efficiency equipment including insulation and energy efficiency advice at little or no cost to eligible households. The increased allocation will enable SEI to fund insulation upgrades for an additional 2,000 homes in 2008 bringing the total to 5,000 homes this year.

Budget 2009 provides for a funding of €5 million for the Warmer Homes Scheme which will be complemented by additional funds from ESB and BGE. This will substantially increase the number of homes that will receive energy efficient measures in 2009. I launched a pilot Home Energy Saving Scheme earlier this year which is grant-assisting homeowners to improve the energy efficiency of their dwellings. Budget 2009 provides €20 million for a national roll out of the scheme.