Written answers

Monday, 11 September 2023

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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163. To ask the Minister for Communications, Climate Action and Environment what actions his Department will be taking to assist families to cope with the increased energy prices; if he is worried in relation to same; and if he will make a statement on the matter. [38735/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Government is aware of the pressures on families caused by continued high energy costs, and has taken a range of measures to support families to stay warm and well. This included a €2.4 billion package of supports implemented during 2022, and a package of once-off measures worth €2.5 billion included in Budget 2023. This included an Electricity Cost Emergency Benefit Scheme through which €550.47 (exclusive of VAT) was credited to each domestic electricity account in three payments of €183.49 (exclusive of VAT). The estimated cost of this scheme is €1.211 billion brought the total amount paid to consumers to provide on-bill support with energy costs to €1.5 billion.

In February 2023, Government announced a further €470 million package of measures to help social protection recipients from April to July and an extension to the reduced VAT rate on electricity and gas bills until the end of October.

The Government is working towards completing the implementation of the Energy Poverty Action Plan, monitoring the efficacy of existing supports, and exploring further measures to support consumers meet energy costs for the coming winter. Any further supports will be considered in the context of Budget 2024.

In the past weeks, price reductions have been announced by SSE Airtricity, Energia, Pinergy, and Electric Ireland who share approximately 75% of the retail electricity market and a further approximate 45% of the retail gas market in Ireland.

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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164. To ask the Minister for Communications, Climate Action and Environment if he or his officials have compared and contrasted the economic reliefs that each EU country is applying to increased energy costs and how they compare to Ireland; and if he will make a statement on the matter. [38736/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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In December 2022, Government approved a new Energy Poverty Action Plan. The Plan is available on gov.ieand sets out the range of measures implemented to meet high energy costs, as well as key longer-term measures, to ensure that those least able to afford these increased energy costs are supported and protected to adequately heat and power their homes.

A cross-departmental and inter-agency steering group meet periodically to review progress towards the objectives outlined in the Energy Poverty Action Plan, including short and long-term actions to support people to meet the cost of energy. Officials from my Department meet regularly with stakeholders, including energy suppliers and representative organisations, to review the effect of existing supports and consider future policy directions.

Regulation of retail energy markets is solely a matter for the Commission for Regulation of Utilities (CRU) since the enactment of the Electricity Regulation Act 1999 and subsequent legislation. However, officials from my Department correspond with CRU on an ongoing basis to track developments in retail and wholesale energy markets, including the effect of government supports on arrears levels, among other indicators. This includes meeting with representatives from other European countries, and staying up to date with European measures through ACER, the European Union Agency for the Cooperation of Energy Regulators. In November, officials from my Department will attend an EU meeting of the Energy Poverty and Vulnerable Consumers Coordination Group in order to engage with Commission recommendations for combatting energy poverty.

In addition, my Department commissioned a nationally representative research tracker to monitor public sentiment and knowledge in relation to energy issues. The results of this tracker indicates there has been some reduction in the difficulty of meeting energy costs, and that Irish families are making consistent efforts to reduce their energy use. The Government is working towards completing the implementation of the Energy Poverty Action Plan, monitoring the efficacy of existing supports, and exploring further measures to support consumers in the context of Budget 2024.

My Department is also conducting a spending review of household energy budget supports during Winter 2022/23 with the Irish Government Economic and Evaluation Service and the Department of Public Expenditure and Reform in order to provide an evidence base for policy making ahead of Budget 24.

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