Written answers

Tuesday, 20 September 2022

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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154. To ask the Minister for Communications, Climate Action and Environment the extent to which he can expect to be in a position to alleviate hardship for urban or rural communities arising from the energy crisis in the course of the forthcoming winter; and if he will make a statement on the matter. [45096/22]

Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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157. To ask the Minister for Communications, Climate Action and Environment the measures that have been taken to help consumers deal with the cost of energy; the further measures that will be introduced. [44997/22]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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181. To ask the Minister for Communications, Climate Action and Environment the extent to which he expects to be in a position to protect the consumer from rising energy prices; and if he will make a statement on the matter. [46032/22]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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182. To ask the Minister for Communications, Climate Action and Environment the extent to which it can be found possible in the short term to ensure that ESB and other energy providers do not pass price inflation to the consumer; and if he will make a statement on the matter. [46033/22]

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Independent)
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184. To ask the Minister for Communications, Climate Action and Environment if the Government has plans to repeat the €200 electricity account credit to domestic electricity customers; and if he will make a statement on the matter. [46054/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 154, 157, 181, 182 and 184 together.

The unprecedented increase in international wholesale gas prices has continued as result of the volatility in the international gas market driven by the Russian invasion of Ukraine and the on-going war. These gas increases feed directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas.

Government is acutely aware of the impact on consumers of high electricity and gas prices, and introduced a €2.4 billion package of measures to mitigate their impact including the Electricity Costs Emergency Benefit Scheme, under which a payment of €176.22 to over 2 million domestic electricity accounts. The Scheme was part of a package of measures, which included further increases in the Fuel Allowance, seeing it increase from €735 in 2020 to €1,139 and a reduction in VAT on electricity bills from 13.5% to 9%.

Further measures are actively being considered in the context of Budget 2023.

The Commission for Regulation of Utilities (CRU) has also announced enhanced consumer protection measures to be implemented by electricity and gas providers ahead of the coming winter. This will provide additional protections from disconnections and other safeguards for customers.

Responsibility for the regulation of the retail electricity and gas markets was assigned to the CRU under the 1999 Electricity Regulation Act and subsequent legislation. CRU ceased price setting for electricity and gas in 2011 and 2014. Therefore, the setting of prices and charges is a commercial matter for individual supply companies.

The best long term solution to energy poverty is make homes energy efficient and thus warmer and healthier to live in. Earlier this year the Government increased the rates of grants operated by the Sustainable Energy Authority of Ireland (SEAI) significantly to make it easier and more affordable for homeowners to undertake home energy upgrades. In particular, SEAI is being supported to focus on free energy upgrades for those at greatest risk of energy poverty. These schemes are seeing significant demand increases. Business supports are also available to support businesses to improve energy efficiency.

Our long term priority and the best long-term approach for Ireland is to insulate consumers from volatility on international wholesale energy markets is to invest in energy efficiency, renewable energy and expand interconnection with European and neighbouring markets and deepen internal market integration.

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