Written answers

Tuesday, 29 July 2025

Department of Environment, Community and Local Government

Energy Prices

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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263. To ask the Minister for Environment, Community and Local Government the measures he is taking to reduce the cost of energy for households; and if he will make a statement on the matter. [43267/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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264. To ask the Minister for Environment, Community and Local Government to outline the analysis that has been carried out on the impact of the Government’s decision not to provide energy credits this winter; the impact projected this is to have on households in arrears; if he anticipates the numbers of households in arrears will rise this winter; the measures he is taking to address this; and if he will make a statement on the matter. [43268/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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265. To ask the Minister for Environment, Community and Local Government the measures he is taking to ease the energy burden on households this winter given the decision to not supply energy credits; if he anticipates households will be able to withstand the increased annual cost in real terms; and if he will make a statement on the matter. [43269/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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268. To ask the Minister for Environment, Community and Local Government the analysis that has been carried out on the cost of energy for households between 2022 and to date in 2025; the measures he is taking to reduce these costs; and if he will make a statement on the matter. [43272/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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269. To ask the Minister for Environment, Community and Local Government the energy market reforms he is considering reducing the cost of energy; and if he will make a statement on the matter. [43273/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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270. To ask the Minister for Environment, Community and Local Government the reason Irish energy prices are so high compared to other EU states; and if he will make a statement on the matter. [43274/25]

Photo of Ruairí Ó MurchúRuairí Ó Murchú (Louth, Sinn Fein)
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288. To ask the Minister for Environment, Community and Local Government for an update on plans to address the high costs of energy in this State; and if he will make a statement on the matter. [43531/25]

Photo of Paul McAuliffePaul McAuliffe (Dublin North-West, Fianna Fail)
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306. To ask the Minister for Environment, Community and Local Government his plans to introduce energy poverty reduction measures to assist with high energy costs for lower income households; and if he will make a statement on the matter. [44130/25]

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
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307. To ask the Minister for Environment, Community and Local Government his response to the Commission for Regulation of Utilities report that as of April 2025, there are more people in arrears on energy bills than at an time since the invasion of Ukraine; and given the objective need for an energy credit greater than at any point previously, if he will consider a fifth round of energy credits. [44232/25]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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I propose to take Questions Nos. 263, 264, 265, 268, 269, 270, 288, 306 and 307 together.

Electricity and gas retail markets in Ireland operate within a European regulatory regime wherein these markets are commercial, liberalised, and competitive and are overseen by the Commission for the Regulation of Utilities (CRU). Price setting by energy suppliers is a commercial and operational matter for the companies concerned.

I am deeply aware of the impact which rising energy prices, driven by an unprecedented increase in wholesale prices and the Russian invasion of Ukraine, have had on Irish consumers and businesses. To date €3.3 billion has been transferred through the four electricity credit schemes, providing support to nearly 2.3 million domestic households.

The Government has put in place a range of improved supports as part of the delivery of Ireland’s residential retrofit programme. These measures are aimed at making it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills.

In 2025, a record capital budget of almost €550 million is allocated for SEAI residential and community energy upgrade schemes, including the Solar PV Scheme, to support over 64,500 home energy upgrades. Of this amount, a record €280 million has been allocated to the Warmer Homes Scheme to provide fully funded upgrades for households at risk of energy poverty. This represents an 11-fold increase over the spend on the scheme in 2020 and underlines the Government’s commitment to addressing energy poverty.

The Government has made a number of important commitments in respect of addressing the continued high cost of energy. The Programme for Government acknowledges the increased energy cost pressures on households and businesses and commits to bringing forward taxation measures to help contain energy costs.

Government 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 with the net benefit to households from 1 May to 31 October being approximately €26.60 with respect to electricity and €20.28 with respect to gas. This is traditionally 13.5% but has been 9% since 2022 in response to the energy price crisis.

In May 2025, my Department established the National Energy Affordability Taskforce to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewable commitments and protecting security of supply and economic stability. This Taskforce will be responsible for drafting an Energy Affordability Action Plan and monitoring its implementation.

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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266. To ask the Minister for Environment, Community and Local Government his engagements with the CRU since he took office; if he has discussed the powers it has to monitor and regulate hedging; and if he will make a statement on the matter. [43270/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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267. To ask the Minister for Environment, Community and Local Government the engagements he has had with the CRU regarding the speed of passthrough between wholesale and retail energy prices; to outline the reasons prices have fallen more slowly here than other EU states; and if he will make a statement on the matter. [43271/25]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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I propose to take Questions Nos. 266 and 267 together.

Electricity and gas retail markets in Ireland operate within a European regulatory regime wherein these markets are commercial, liberalised, and competitive with the market being overseen by the Commission for the Regulation of Utilities (CRU).

However, this Government is deeply conscious of the impact which rising energy prices, driven by an unprecedented increase in wholesale prices and the Russian invasion of Ukraine, have had on Irish consumers and businesses. The Government has made a number of important commitments in respect of addressing these energy price increases, both in terms of the review of the regulatory framework and increasing Ireland’s overall energy supply and independence.

The CRU published a report on retail energy markets in September 2023 in relation to competition and supplier pricing in the energy market. The report was in response to a request by then Minister for the Environment, Climate and Communications, Eamonn Ryan TD, to examine supplier hedging practices and pricing strategies in the Irish Energy market. Based on a review of supplier prices and wholesale market costs, the CRU considers that retail prices are broadly continuing to reflect underlying cost drivers, such as wholesale gas and electricity prices, but with a lag period due to supplier hedging strategies. This hedging reduced the impact on consumers of the sustained high and volatile prices during the period in advance of and during Russian invasion of Ukraine. This slower and smoother increase, facilitated by hedging, is expected to be mirrored by similar slower and smoother decrease, should wholesale and futures prices continue to decline.

Also under the Programme for Government 2025, Government has committed to commissioning an independent review into the speed and level of pass through from wholesale prices to retail prices, with an additional assessment of the overall price dynamics and an overall focus on the competitiveness of the Irish economy. This is a priority and will form part of the National Energy Affordability Taskforce that was established to examine the cost drivers of energy bills with a view to maximising affordability while meeting Ireland’s energy and sustainability goals.

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