Holly Cairns (Cork South West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

184. To ask the Minister for Communications, Climate Action and Environment the steps he is taking to address fuel poverty; and if he will make a statement on the matter. [2587/22]

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

Energy poverty or fuel poverty is influenced by a person’s income, the energy efficiency of their home and the cost of the energy they use in their home. Analysis carried out in 2016 for the Strategy to Combat Energy Poverty found that 28% of households in Ireland could be in energy poverty on the basis of needing to spend more than 10% of their income on their energy needs. Good progress has been made since the launch of the Strategy as evidenced by ESRI analysis of the number of households at risk of experiencing energy poverty in 2019 and 2020. This showed that the share of households needing to spend more than 10% of their income on their energy needs was 17.5% in 2020. The Survey on Income and Living Conditions supports this, indicating that the proportion of people who report that they are unable to afford to keep the home adequately warm, has fallen from 9% in 2015 to 3.4% in 2020. Government policy to alleviate energy poverty for a number of years has focused 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 schemes and the Social Housing retrofitting programme.

Budget 2022 has allocated €202 million for SEAI residential and community retrofit schemes. Over half of this (€109 million) will be used to provide free energy efficiency upgrades to households that are in, or at risk of, energy poverty. The Minister for Housing, Local Government and Heritage will invest a further €85 million as part of the Social Housing Retrofit Programme this year. Overall, this represents an allocation of €194 million to retrofitting homes of those most at risk of energy poverty - an increase of €20 million on the 2021 allocation. Budget 2022 also provided for a €5 increase to the Fuel Allowance to €33 per week, or €924 per year, as well as an extension of the eligibility criteria for the payment, by the Minister for Social Protection.

In addition a scheme to credit all domestic electricity account holders with up to €100 in 2022 was approved by Government in December 2021. This payment is one of a suite of measures to mitigate the effects of the recent significant rises in electricity prices, which includes support through the social protection system. Approximately 2.1 million domestic electricity account holders will benefit from the scheme for a one-off, exceptional payment to their electricity accounts. The scheme will apply to all domestic accounts, including pay as you go customers.

Protections are also in place for customers falling into arrears on their energy bills. Under the supplier led voluntary Energy Engage Code, suppliers will not disconnect a customer who is engaging with them. Suppliers must also provide every opportunity to customers to avoid disconnection and must identify customers at risk of disconnection and encourage them to engage as early as possible.

A review of the implementation of the Strategy to Combat Energy Poverty will be completed in Q1 2022 and will inform next steps in relation to the development of a new strategy. Measures to support those least able to afford to retrofit their homes have also been included in the new National Retrofit Plan, published as part of the Climate Action Plan last year.