Written answers

Wednesday, 18 January 2023

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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67. To ask the Minister for Communications, Climate Action and Environment further to Parliamentary Question No. 173 of 29 November 2022, when a response will issue in relation to the protections that are in place for district heating customers who prepay for gas in order to prevent any disconnection of service if they cannot pay their bills this winter; and if he will make a statement on the matter. [63291/22]

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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89. To ask the Minister for Communications, Climate Action and Environment the way district energy schemes are regulated; the rationale for not doing so under the Commission for Regulation of Utilities; the reason residential customers are then billed as commercial customers, given that part of the rationale for a just transition is energy and cost efficiency; and if he will make a statement on the matter. [63937/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 67 and 89 together.

District heating schemes are large-scale systems that are supplied by one or several centralised or decentralised heat sources, with multiple buildings and multiple customers. Group heating schemes are smaller-scale systems that supply single buildings or complexes. In relation to group heating schemes, it is the heat supplier that purchases the fuel, predominantly gas in current systems. Therefore, a commercial tariff is applied due to the scale of the purchase.

The Government is committed to expansion of district heating making use of renewable and waste energy sources, as this technology can contribute to diversification of fuel supply for heat, decarbonisation of the heat sector, and security of supply.

My Department is working to develop an appropriate regulatory framework in order to ensure a sound basis for the expansion of district heating. Under S.I. 350/2022, the Commission for Regulation of Utilities (CRU) has been appointed as Regulator for district heating networks and will be responsible for regulation of the sector going forward. The regulatory needs of the sector, to include group and communal heating schemes, require further, detailed examination, and this is being undertaken by the CRU as a matter of priority.

To assist in identifying 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. It is anticipated that initial results will be available early this year.

While I have no function in the day-to-day business operations of individual companies, in order to help alleviate the impact of the rising cost of living on households Government has 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 which is being applied to domestic electricity accounts as a universal support to all households.

In addition to supports for energy costs such as the Household Benefits Package and the Fuel Allowance, people can apply to the Community Welfare Service (CWS) for assistance with essential costs that they cannot reasonably be expected to meet from their income. Such payments are subject to income tests and an assessment of need.

The Energy Poverty Action Plan also sets out the actions the Government has put in place to tackle energy poverty and help people to pay their energy bills as part of the wider cost of living crisis.

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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68. To ask the Minister for Communications, Climate Action and Environment the way residents of an area (details supplied) can receive their energy credit through South Dublin County Council; if they will receive the first payment from April; when these payments will be received; if a priority can be made to finalise this process before the end of the year; and if he will make a statement on the matter. [63328/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Government is acutely aware of the impact that the recent increases in global energy prices is having on households and throughout 2022 introduced a €2.4 billion package of supports and as part of Budget 2023 has introduced a package of once off measures worth €2.5 billion. This includes a new Electricity Cost Emergency Benefit Scheme through which €550.47 (exclusive of VAT) is being credited to each domestic electricity account in three payments of €183.49 (exclusive of VAT). The first payment has been made with the second due in the January/February billing cycle and the final payment in March/April. The estimated cost of this scheme for over 2 million domestic electricity accounts is €1.211 billion. This is in addition to the first Electricity Costs Benefit Scheme which cost €377 million.

The payment will be applied to domestic electricity accounts which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2). This includes?accounts with pre-pay meters. The scheme uses the single identifier of the Meter Point Registration Number (MPRN)?to ensure it can be administered automatically and without an application.  The advantage of the scheme is that it uses the Meter Point Registration Number (MPRN) to identify all domestic electricity accounts and ensure payments are made directly and automatically to those accounts without using means testing, application or approval. Despite this advantage, the Scheme does have limitations. As a result there are cohorts that did not receive the payment. A particular cohort, identified since the first Scheme, includes a number of traveller households who use Local Authority accommodations and who were unable to access the credit. In this situation, the MPRN is registered to the Local Authority and supplies multiple households. This group is identifiable through their use of Local Authority accommodation.

In approving the second Electricity Costs Emergency Benefit Scheme, Government also approved funding for this group, including provision for payment to be made to these households in respect of the first scheme. My Department has worked with the County and City Management Association (CCMA) on this matter and provided the funds to individual Local Authorities to enable them to make the necessary payments to households in their areas. The allocation of these funds to Traveller households is a matter a matter for each Local Authority.

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