Holly Cairns (Cork South West, Social Democrats)
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212. To ask the Minister for Communications, Climate Action and Environment the steps that he is taking in response to rising electricity costs; and if he will make a statement on the matter. [27193/22]

Eamon Ryan (Dublin Bay South, Green Party)
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Electricity and gas retail markets in Ireland operate within a European regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. Responsibility for the regulation of the electricity and gas markets is solely a matter for the Commission for Regulation of Utilities (CRU).The most immediate factor affecting electricity prices in Ireland is high international gas prices where we are a price taker. Gas prices are now unprecedently high and these gas increases feed directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas. 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. Recognising the unprecedented rise in energy prices facing people the Government has also put in place a number of additional measures earlier this year including:

- an 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.

- the Electricity Costs Emergency Benefit Payment of €176.22 (excl. VAT) credited to their accounts.

- the new National Retrofit Schemes include 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 measures for households 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.

In addition, Response 6 of the National Energy Security Framework tasks the Commission for Regulation of Utilities (CRU) with implementing a package of measures to enhance protections for financially vulnerable customers and customers in debt by quarter 3 - ahead of the next heating season.