Written answers

Tuesday, 13 October 2009

Department of Communications, Energy and Natural Resources

Energy Prices

12:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context

Question 31: To ask the Minister for Communications, Energy and Natural Resources when he will change the regulatory model for setting the price of domestic household electricity in order to allow the ESB to compete on price; and if he will make a statement on the matter. [35560/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I welcome the fact that the benefits of competition in electricity supply, which have previously been confined to large industrial and commercial customers, are finally available to domestic consumers. The entry into the domestic electricity market of two new suppliers, Airtricity and Bord Gáis Energy earlier this year, demonstrates that policy to encourage competition in electricity generation and supply is paying dividends for consumers.

The independent suppliers are offering discounts of between 10% and 14% on ESB unit rates. These discounts apply even after the 10% reduction in ESB prices implemented by the Commission for Energy Regulation (CER) from May 1st 2009. The independent suppliers are also offering domestic consumers more choice including options in relation to the proportion of renewable electricity they purchase, as well as alternative billing arrangements. Domestic customers have been switching to the independent suppliers in significant numbers. However, there are close to 2 million domestic electricity customers and ESB still retains some 85% of the market share.

The CER has confirmed to me that the regulation of ESB tariffs will only continue until a sufficient level of competition has developed in the market. Energy price regulation is designed to ensure that a dominant player cannot potentially engage in uncompetitive, short-term pricing practices, which could undermine or drive out emerging competition. Progressive reduction of ESB's share of the electricity supply market is therefore critical to the timing for deregulation.

The CER, which has statutory responsibility for energy tariffs, will continue to review overall energy tariff structures taking account of global fuel prices, the importance of regulatory and market certainty for the energy sector, the competitiveness challenges facing industry and the needs of consumers generally. In a tariff decision paper published on September 3rd 2009, the CER set out its commitment to the short to medium term removal of all price regulation, provided there is the continued development of the appropriate levels of sustainable competition in all sectors of the market. The CER is to publish for public consultation a 'Roadmap' for deregulation in the coming months.

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 33: To ask the Minister for Communications, Energy and Natural Resources when he will publish the findings of the Fuel Poverty Action Research Project; when this was first due for publication; the numbers living in fuel poverty; the number of people who benefited from the warmer homes scheme; and if he will make a statement on the matter. [35522/09]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

Question 42: To ask the Minister for Communications, Energy and Natural Resources the action he will take to combat fuel poverty in winter 2009; the number of people who live in fuel poverty here; the number of homes which were part of the warmer homes scheme for 2008 and to date in 2009; and if he will make a statement on the matter. [35507/09]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 49: To ask the Minister for Communications, Energy and Natural Resources the number of applicants each year to date in 2009 for the warmer homes scheme; the waiting time for approval and participation in this scheme; if there are applicants who have applied in 2009 who will not be able to avail of this scheme; and if he will make a statement on the matter. [35525/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I propose to take Questions Nos. 33, 42 and 49 together.

The Fuel Poverty Action Research Project was established by Combat Poverty and Sustainable Energy Ireland (SEI). The project involved an integrated and systematic ex-post assessment of the energy, environmental, thermal comfort and health benefits of the SEI-administered Warmer Homes Scheme which retrofits low income private homes with insulation and other energy saving measures. The report was initially scheduled to be completed in 2008. However, I am advised that its completion was delayed due to the accidental loss of some key data. In August of this year the draft report was circulated to members of the research community for comment. Following this consultation process, publication of the final report is expected before the end of 2009.

The most recent research figures available on the numbers at risk of fuel poverty are contained in the National Energy Efficiency Action Plan which was published in May this year and which updates the Economic and Social Research Institute's (ESRI) working paper entitled, Fuel Poverty in Ireland: Extent, Affected Groups and Policy Issues, which was published in November 2008. There are three methods of calculating the extent of fuel poverty: the expenditure method or share of income spent on household fuels; subjective measures on the part of occupants; and objective measurement of residence condition and comfort levels in relation to needs.

ESRI estimates that using the expenditure method, 301,368 or 19.4% of Irish households may have experienced fuel poverty in 2008. Alternatively, using the subjective method 68,050 or 4.6% of households reported that they could not afford to heat their homes adequately in 2006. Enhancing the energy efficiency of homes through structural improvements is pivotal to the Government's strategy to address energy affordability. To date, energy efficiency improvements in nearly 31,000 homes have been made under the Warmer Homes Scheme and ESB's associated Home Insulation Scheme which operates according to the Warmer Home Scheme specification. Some €20 million has been provided for the scheme in 2009, which includes €5 million provided by ESB and BGE. The additional funding will enable structural improvements to be made to at least 15,000 homes by the end of this year. This represents a very significant up-scaling of the scheme underlining the Government's commitment to the problems of energy affordability.

The following table sets out the details as follows:

YearHomes Retro-Fitted
20001,430
20011,500
20021,600
20031,768
20041,947
20051,813
20062,102
20073,378
20085,343
2009 to date9,939
TOTAL30,820

The Warmer Homes Scheme provides energy efficiency improvements to homes in, or at risk of, fuel poverty and is delivered by community based organisations (CBOs). The CBOs work in partnership with their local network of poverty and community support organisations including public health nurses, MABS and St. Vincent De Paul to identify and address vulnerable homes. The system of operation, application and delivery of the Warmer Homes Scheme is through local community based organisations (CBOs), of which 22 have, to date, been approved to provide this service. Through this devolved model, each CBO is responsible for managing applications in their own operational areas.

The waiting time for approval and participation in the scheme varies across CBOs depending upon the demand in their area of coverage and the resources available to them. The average waiting time for receipt of the Scheme currently ranges between six and ten months, which is a significant improvement on previous years and represents huge progress towards a sustainable nationwide network of CBOs. It is likely that some applicants who have applied for the scheme in the latter part of 2009 will not have it delivered to their homes in 2009. SEI will continue to address these homes in 2010 subject to available funding.

The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of institutional supports and investment in improving the energy efficiency of the housing stock and the availability of advice. The Keep Well and Warm booklet will continue to be regularly updated and revised. This booklet, along with the associated website, provides energy saving advice and information on the availability of grant schemes to vulnerable households. Some 132,000 copies of the revised booklet have been distributed in 2009.

I am working closely with the Minister for Social and Family Affairs and the Minister for the Environment, Heritage and Local Government, to continue to deliver a fully cohesive approach across Government. In that context, the Inter Departmental/Agency Group, led by my Department and the Department of Social and Family Affairs, has been asked to draw up an Energy Affordability Strategy for public consultation before the end of the year and which will set out existing and future approaches to addressing energy affordability.

Comments

No comments

Log in or join to post a public comment.