Written answers

Tuesday, 26 April 2022

Department of Communications, Climate Action and Environment

Fuel Poverty

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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288. To ask the Minister for Communications, Climate Action and Environment his views in relation to the health impact arising from fuel poverty; his further views on the need for greater investment to prevent fuel poverty and the corresponding health consequences for persons; and if he will make a statement on the matter. [20308/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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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.  Excess winter mortality has been linked to energy poverty and to poor housing standards. Energy efficiency measures are central to addressing the root causes of energy poverty, and may also be an effective preventative intervention to improve cold-related health impacts. Creating healthy indoor living environments with healthy air temperatures, humidity levels, noise levels, and improved air quality can support good physical and mental health. The Climate Action Plan and National Retrofit Plan set ambitious targets to retrofit the equivalent of 500,000 homes to a Building Energy Rating of B2 and to install 400,000 heat pumps in existing buildings by the end of 2030. These targets represent a very significant increase in both the volume and depth of retrofit activity in Ireland. The National Development and National Retrofit Plans have ring-fenced €8 billion to support the achievement of this objective. This will be supplemented by the Department of Housing, Local Government and Heritage budget for retrofitting 36,500 local authority homes.

This year, 58% (€203 million) of the total Government retrofit budget of €352 million will be spent on dedicated energy poverty retrofit supports and local authority retrofits. Grants are also available for those who can afford to contribute to the cost of retrofitting their home. Up to 50% of the typical cost of a whole home retrofit to a B2 Building Energy Rating is available, as well as individual grants covering up to 80% of the typical cost of some measures.  These supports will make it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills.

The Warmth and Wellbeing scheme, funded by my Department, and operated by the SEAI and the HSE aims to objectively measure and validate the health and wellbeing impacts of improving the living conditions of vulnerable people living in energy poverty with chronic respiratory conditions. An independent analysis of the scheme benefits is being carried out by the London School of Hygiene and Tropical Medicine, in collaboration with the HSE.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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289. To ask the Minister for Communications, Climate Action and Environment the measures in place to assist those on low incomes to avoid fuel poverty; the number living in fuel poverty in Ireland; the impact that fuel poverty has on low income families; if research will be commissioned into the number of families experiencing fuel poverty; and if he will make a statement on the matter. [20312/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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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. In 2020, the ESRI estimated that 17.5% of households in Ireland could be at risk of energy poverty. Lower income households living in inefficient homes are more at risk of energy poverty when energy prices increase, as the proportion of their income needed to meet their energy needs increases.The Government has put a range of policies and measures in place to support households who are at risk of energy poverty. These measures supplement lower income households through the Fuel Allowance, the Household Benefits Package 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. This year, 58% (€203 million) of the total Government retrofit budget of €352 million will be spent on dedicated energy poverty retrofit supports and local authority retrofits. The Government has also put in place a number of additional measures earlier this year to address the increasing cost of energy including:

·Following on from the Budget 2022 increase in the weekly rate of the Fuel Allowance by €5 to €33 a week so that €914 was paid to eligible households over the course of the winter, an additional lump-sum payment of €125 was paid to the 370,000 households receiving the fuel allowance in mid-March.

·All residential electricity customers will see the Electricity Costs Emergency Benefit Payment of €200 (incl. VAT) credited to their accounts.

·The National Retrofit Scheme includes specific measures to support householders in taking actions to reduce energy bills, including up to 80% grant funding for low-cost, high-impact measures such as attic insulation.

To further manage the impact of recent price increases the Government, in the recently published National Energy Security Framework, has also announced a number of additional supports for consumers and businesses including:

-A new targeted €20 million scheme for the installation of Photo Voltaic (PV) panels for households that have a high reliance on electricity for medical reasons.

-A package of measures to enhance protections for financially vulnerable customers and customers in debt in the electricity and gas sectors.

-A review of the price-drivers behind electricity and natural gas bills (including network costs) with a view to mitigating cost increases for consumers and businesses in the near term.

-The continuation of the excise duty reduction on petrol, diesel and marked gas oil until the Budget in October 2022.

-A reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.

-An additional payment of €100 for all recipients of the Fuel Allowance.

-The reduction to zero of the Public Service Obligation (PSO) levy on electricity bills.

In addition to the measures outlined above, the electricity and gas markets, which are overseen by the Commission for Regulation of Utilities, have a range of protections against disconnections in place for consumers. In brief, priority customers cannot be disconnected, while vulnerable customers are protected over winter months from 1 November to 31 March each year. Additionally, under the supplier led voluntary Energy Engage Code, suppliers will not disconnect a customer who is engaging with them at any time. Accordingly, any customers who are experiencing difficulties with their Bills should engage with their supplier to discuss the various options and assistance available.

A research network on fuel poverty chaired by the Economic and Social Research Institute was established in 2021. The group consists of representatives from the Department of the Environment, Climate and Communications, the Department of Social Protection, the Sustainable Energy Authority of Ireland and the Central Statistics Office. The Group has commenced examination of the data and metrics needed to improve existing measures for fuel poverty in Ireland. The main goal is to provide insights that enhance policy design to protect vulnerable households. A work programme, proposed outputs and timelines will be agreed and finalised shortly.

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