Written answers

Tuesday, 10 June 2025

Department of Environment, Community and Local Government

Energy Prices

Photo of Joe NevilleJoe Neville (Kildare North, Fine Gael)
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115. To ask the Minister for Environment, Community and Local Government if his Department has engaged with the Department for Energy to seek a solution to the increase of energy costs in Ireland; and if there is potential for a CAP for businesses who are now struggling to keep up with its growing bills. [20750/25]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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The Government has made a number of important commitments to address the continued high cost of energy, while accelerating the decarbonisation of Ireland's energy system. The Programme for Government acknowledges the pressures on households and businesses caused by high energy costs. The Government recently approved an extension of the 9% VAT rate currently applied to gas and electricity by a further six months to October 2025 at an estimated cost of €85 million.

Government is conscious of the specific pressures that high energy costs impose on businesses, particularly SMEs and those particularly dependent on certain fuels. Our economy's competitiveness over the medium-term will in part depend on a diversified and cost-effective energy system, as envisaged in the Climate Action Plan.

Supports available to business include the Increased Cost of Business Scheme (ICOB) and the Power Up Grant, administered by the Local Authorities. Businesses can receive support to install solar PV through the Non-domestic Microgeneration scheme supported by my Department and administered by SEAI, and can improve their energy efficiency through the SEAI Business Energy Upgrades Scheme, which provides 'rapid approval' grants to help SMEs reduce costs. Local Enterprise Offices also provide generous Energy Efficiency Grants for small and micro businesses.

A cross-Government Energy Affordability Taskforce has been established to identify, assess and implement policy options to improve energy affordability while delivering key renewable commitments and protecting security of supply and economic stability. The Taskforce's work programme will include the preparation and publication of an Energy Affordability Action Plan and monitoring its implementation on an ongoing basis.

The Taskforce will be chaired by my Department and attended by officials from relevant Government Departments and energy sector stakeholders. This reflects work going on at the EU through the Action Plan on Affordable Energy and the EU Competitiveness Compass, as part of the Clean Industrial Deal. As such, I can confirm that officials from the Department of Enterprise, Trade and Employment will be key members of the National Energy Affordability Taskforce.

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