Written answers

Thursday, 15 December 2022

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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93. To ask the Minister for Communications, Climate Action and Environment if mechanisms exist to reimburse residential customers of district heating schemes who pay for domestic energy at a commercial rate for excess costs; and if the examination of such a policy is in the remit of the steering group due to report on district heating schemes in 2023. [62761/22]

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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100. To ask the Minister for Communications, Climate Action and Environment if he will introduce financial supports for residents reliant on communal energy systems in the form of one-off energy credits or a direct subsidy covering the difference between the average domestic rate and the commercial rate of gas, pending the development of appropriate regulation of the district heating sector; and if he will make a statement on the matter. [62380/22]

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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107. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the feasibility studies for geotherm for communal and district heating systems, to include an outline of grant schemes or other funding mechanisms for residents using communal and district heating systems; and if he will make a statement on the matter. [62563/22]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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108. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the feasibility study of geothermal energy; the role that he sees geothermal playing in community heating systems in Ireland; and if he will make a statement on the matter. [62755/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 93, 100, 107 and 108 together.

The National Heat Study recognises the potential of geothermal energy to supply district heating schemes, my Department has established the Geothermal Energy Advisory Group to advise on the finalisation of the ‘Draft Policy Statement on Geothermal Energy for a Circular Economy’. The Advisory Group will hold its first meeting in January 2023.

Group heating schemes are apartment blocks or housing developments that are supplied with heat rather than fuel and, in such cases, it is the heat supplier that is the purchaser of the fuel used. Where gas is being used, a commercial tariff is applied, due to scale of purchase. While commercial rates have generally been lower than domestic gas rates, recent increases in energy prices have led to a sharp increase in commercial gas rates in particular. However, commercial gas prices respond more quickly to the market than domestic prices.

In order to identify alternative heat sources for group heating schemes in particular, the Sustainable Energy Authority of Ireland has initiated a feasibility study to examine the technical potential of moving schemes fuelled by natural gas to a renewable energy source, with a focus on geothermal energy. It is anticipated that initial results will be available in 2023.

The solutions to the issues facing group heating schemes will be found in the development of a consumer protection regulatory framework and in the transition to renewable sources of energy to heat buildings. The Commission for Regulation of Utilities (CRU) has been appointed as regulator for district heating networks and the District Heating Steering Group, established earlier this year, has in its deliberations considered the economic regulation and consumer protection needs of district heating and smaller scale group heating schemes.

More broadly, to help alleviate the impact of the rising cost of living, the Government has already put in place a series of measures, with funding of €2.4 billion available. A further package of once off measures worth €2.5 billion was announced in Budget 2023, including the Electricity Cost Emergency Benefit Scheme II. The Electricity Costs Emergency Benefit payment is being applied to domestic electricity accounts as a universal support to all households.

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