Holly Cairns (Cork South West, Social Democrats)
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76. To ask the Minister for Communications, Climate Action and Environment the measures that he is proposing to support households struggling to meet rising energy bills. [45551/22]

Eamon Ryan (Dublin Bay South, Green Party)
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The unprecedented increase in international wholesale gas prices have 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 has introduced a range of measures to mitigate their impact, including the Electricity Costs Emergency Benefit Scheme with a payment of €176.22 (excl. VAT) made to almost 2.2 million domestic electricity accounts between April and May of this year at a total cost of just under €377 million. The Scheme was part of a package of measures, which included further increases in the Fuel Allowance, seeing it increase from €735 in winter 2020/21 to €1139 and a reduction in VAT on electricity bills from 13.5% to 9%.

Under Responses 6 and 7 of the National Energy Security Framework the Commission for Regulation of Utilities (CRU) announced enhanced consumer protection measures to be implemented by electricity and gas providers ahead of the coming winter. This means that from 1 December 2022 until 28 February 2023 no domestic customers can be disconnected while vulnerable customers cannot be disconnected from 1 October 2022 until 31 March 2022. These measures also include a requirement that customers with a financial hardship meter will be placed on the cheapest tariff available from their supplier from 1st December. This is in addition to the existing protections for vulnerable customers registered as being critically dependent on electrically powered assistive devices who cannot be disconnected for reasons of non-payment at any time. Full details of CRU’s enhanced measures is available at: CRU202285-CRU-Decision-on-Additional-Customer-Protection-Measures-for-Household-Electricity-Gas-Custsomers_.pdf

On energy efficiency, the Government supports are considerable. Earlier this year the government announced a package of supports to make it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills and lower emissions. €118 million has been allocated to SEAI to provide free energy efficiency upgrades to households that are in, or at risk of, energy poverty. It is estimated that over 5,100 upgrades will be provided under SEAI Energy Poverty schemes in 2022. The Minister for Housing, Local Government and Heritage will invest a further €85 million as part of the Local Authority Retrofit Programme in 2022. This will deliver approximately 2,400 B2 retrofits of Local Authority homes this year. This means that of the total Government retrofit budget of €352 million, €203 million (58%) will be spent on dedicated energy poverty schemes and local authority retrofits.

Responsibility for the regulation of the retail electricity and gas markets is statutorily a matter for the CRU. It ceased price setting for electricity in 2011 and gas in 2014. Therefore, the setting of prices and charges is a commercial matter for individual supply companies.

Government has already put a €2.4 billion package of measures in place to support people to meet the cost of energy and continues to monitor this unprecedented and evolving situation closely to inform ongoing consideration of further action, particularly in the context of the imminent Budget 2023.

The best long-term approach for Ireland 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.