Written answers

Tuesday, 8 November 2022

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Denise MitchellDenise Mitchell (Dublin Bay North, Sinn Fein)
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129. To ask the Minister for Communications, Climate Action and Environment if his attention has been drawn to groups of housing units being charged commercial rates for gas usage; if he intends to intervene in order to reduce the cost for tenants this coming winter; and if he will make a statement on the matter. [55133/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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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.

Government is acutely aware of the impact that recent increases in global energy prices is having on households and implemented a €2.4 billion package of supports this year, with a further package of once off measures worth €2.5 billion in Budget 2023, which includes the Electricity Cost Emergency Benefit Scheme II. Since being announced in Budget 2023 primary and secondary enabling legislation has been put in place and from Tuesday, 1stNovember, the first of three €200 electricity credits (inclusive of VAT) are being paid directly to over 2.2 million domestic electricity accounts, including both bill pay and pay-as-you-go customers.

This year, my Department established the District Heating Steering Group to consider the development of district heating in Ireland and the regulatory framework required to protect consumers. The Steering Group has considered the economic regulation and consumer protection needs of the district heating sector, and smaller scale group heating schemes have been part of these considerations.

In addition, in the context of developing district heating in Ireland, the Sustainable Energy Authority of Ireland has initiated a programme of pilot feasibility studies in relation to the technical potential of moving group heating schemes fuelled by natural gas to a renewable energy source. It is anticipated that the results of the first of these studies will be available in the New Year, and they will be of use to inform decisions of operators of schemes throughout the country.

Furthermore, the Commission for Regulation of Utilities has been appointed as Regulator of District Heat Networks and will be responsible for development of appropriate regulation of the sector.

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