Colm Burke (Cork North Central, Fine Gael)
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303. To ask the Minister for Communications, Climate Action and Environment if consideration will be given to the implementation of an energy guarantee under which all older persons over the age of 65 years will receive a minimum quantity of energy per month to assist them with the cost of home heating, with the amount determined by their income level, their housing type, their fuel type, and the building energy rating of their home funded through carbon tax revenue set aside for fuel poverty alleviation; and if he will make a statement on the matter. [20594/22]

Eamon Ryan (Dublin Bay South, Green Party)
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Government is acutely aware of the impact that the recent increases in global energy prices is having on households.The most immediate factor affecting electricity prices in Ireland is high international gas prices where we are a price taker. In Europe, wholesale natural gas prices have risen and remained high since the second half of 2020. Gas prices are now unprecedently high, with UK wholesale gas prices recently reaching record levels. The increase in international wholesale gas prices have continued to be driven to unprecedentedly high levels by the volatility in the international gas market caused by the Russian invasion of Ukraine. These gas increases feed directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas.

Government’s immediate response to address the increase in domestic energy prices has been to utilise the tax and social welfare system to counter rising costs of living. Government actions include an increase to the Fuel Allowance in Budget 2022, the Electricity Costs Emergency Benefit Payment where domestic accounts are now seeing €176.22 exclusive of VAT credited to their accounts. This €400 million measure is in addition to the range of measures introduced on 10 February to address increasing costs of living, including the lump sum payment for people on the Fuel Allowance of €125, which was paid to 372,000 households in March.

On 13 April, in the context of the Russian invasion of Ukraine, government launched the National Energy Security Framework which includes a further €100 Fuel Allowance payment to be made to all recipients of the Fuel Allowance in quarter 2 of this year, 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 and a reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.

The Deputy may find the following document helpful as it details the allocations from the carbon tax for the decade: assets.gov.ie/201264/5c96e5cd-b663-4887-bf2e-e13a393ffc50.pdf