Written answers

Tuesday, 20 September 2022

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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152. To ask the Minister for Communications, Climate Action and Environment his plans to address the higher-than-average prices charged to customers of district heating companies which purchase and charge for gas at the commercial rate rather than the residential rate. [45875/22]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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162. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the work of the District Heating Steering Group that was formed under the Climate Action Plan 2021; and if this group is examining ways in which residential units can exit district heating systems that are subject to commercial energy rates. [45932/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 162 and 152 together.

In cases where apartment blocks or housing developments are supplied with heat, rather than fuel, it is the heat supplier that is the purchaser of the fuel used. Therefore, where gas is being used, a commercial tariff is applied due to scale of purchase.

Gas and electricity retail markets in Ireland operate within a European regulatory regime wherein those markets are commercial, liberalised, and competitive. However, I am acutely aware of the impact that current, internationally influenced, energy price increases are having on people and families and, for that reason, Government has put in place a series of measures with funding of €2.4 billion available to help alleviate the impact, particularly on lower income households. Further measures are being considered in the context of Budget 2023.

In line with the commitment in the Climate Action Plan 2021, a District Heating Steering Group was established earlier this year. The Steering Group has met eight times to date and oversees a number of Working Groups that are conducting in-depth, solutions-based analysis of the key areas that must be addressed in order to support district heating. The Steering Group is working on recommendations to ensure that a robust governance and regulatory framework is put in place to support the expansion of district heating. This will help ensure consumer protection, and considerations in this regard encompass legacy group heating schemes that are already in operation.

The Sustainable Energy Authority of Ireland will soon initiate a pilot feasibility study to explore the technical viability and implications of moving existing group heating schemes to renewable energy sources. This will inform the work of the Steering Group, which is expected to bring its report to Government later this year.

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