Written answers

Tuesday, 8 November 2022

Department of Communications, Climate Action and Environment

Energy Policy

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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39. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the redistribution of energy profits, especially those of the Corrib gas field; and if he will make a statement on the matter. [55408/22]

Photo of Mick BarryMick Barry (Cork North Central, Solidarity)
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59. To ask the Minister for Communications, Climate Action and Environment the estimated amount that the State will receive from the European Union windfall tax on energy companies; if he supports this measure being extended; if he supports a higher rate of taxation than the rate that is envisaged; and if he will make a statement on the matter. [46195/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 39 and 59 together.

On 30 September the Council of Energy Ministers agreed a Council Regulation on an emergency intervention to address high energy prices. The Regulation includes provisions that deal with windfall gains in the energy sector through a temporary solidarity contribution based on taxable profits for fossil fuel production and oil refining, and by introducing a cap on market revenues of for specific technologies in the electricity sector. It is not possible to estimate with certainty the proceeds that could be collected from the implementation of the Regulation. This is because the proceeds are dependent on the wholesale gas price which is highly volatile. The proceeds collected as a result of implementing the Regulation must be distributed in line with the provisions of the Regulation which focuses on supporting energy consumers. The cap on market revenues applies until June 2023 with a review due by the end of April 2023 and the temporary solidarity contribution applies to the end of 2023 with a review by mid-October 2023. Any potential extension of the Regulation would be informed by these reviews. My Department is currently working with relevant Departments, agencies and stakeholders to implement the Regulation.

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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40. To ask the Minister for Communications, Climate Action and Environment the way in which his Department measures progress in reducing energy poverty; if closer alignment with the system of energy upgrades could be developed; and if he will make a statement on the matter. [50625/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Energy poverty is influenced by a person’s income, the energy efficiency of their home and the cost of the energy they use. The ESRI recently published analysis which indicates that following the recent sharp increases in energy prices, the share of households that could be at risk of energy poverty has risen to 29.4%. This was estimated using the ‘10% of income spent on energy’ or ‘expenditure method’ measurement of energy poverty.

A research network on fuel poverty chaired by the Economic and Social Research Institute has been established to improve the measurement and monitoring of energy poverty in Ireland and provide insights that enhance policy design to protect vulnerable households. Further detail will be set out in the forthcoming Action Plan to Combat Energy Poverty.

Government also monitors progress on policies and measures being implemented to alleviate energy poverty. A review of the Government’s Strategy to Combat Energy Poverty was published in August this year. The Review showed strong delivery with many of the original actions exceeded. Headline achievements include:

- A fivefold increase in retrofit budgets for lower income and local authority households;

- Significant increased average retrofit value per home under the Warmer Homes Scheme, from ~€2,500 to ~€18,750;

- Expanded eligibility for free energy upgrades to four additional at risk groups;

- Increases in level, distribution and frequency of Fuel Allowance payments as well as other social protection payments;

- Continued and improved consumer protections, including disconnection policies.

The review and the public consultation which accompanied it helped to inform the €2.5 billion package of once-off measures which was set out in Budget 2023. including:

-a new Electricity Cost Emergency Benefit Scheme which will credit each domestic electricity account;

-an extensive range of social protection measures to support people with the increased cost of living.

Budget 2023 also provided for:

- €337 million for home energy upgrade schemes next year including free upgrades for 6,000 homeowners at risk of energy poverty;

- Continuation of a special enhanced grant rate, equivalent to 80% of the typical cost, for attic and cavity wall insulation;

- An additional €87 million to continue the Energy Efficiency Programme for social housing.

The new Action Plan to Combat Energy Poverty will set out the range of measures being implemented this winter, as well as key longer-term measures to ensure that those least able to afford increased energy costs are supported and protected. It is intended that the new plan will be published in the coming weeks.

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