Dáil Éireann Debate, Tuesday - 22 January 2013
420. Deputy Terence Flanagan asked the Minister for Communications, Energy and Natural Resources the recent representations he has received regarding the impact on consumers of high oil prices; and if he will make a statement on the matter. [2585/13]
View answerFrom time to time I receive representations in relation to the prices of oil products and their impact on consumers.
I have no statutory function in the setting of oil prices. The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market.
The taxation of oil products is a matter for my colleague the Minister for Finance.
The upward trend in global oil prices arises primarily from the increases in the international commodity prices over which Ireland has no control. For example, the spot price of a barrel of Brent Crude Oil has risen from a low of US$90 in June 2012 to US$111 in January 2013. This has inevitably resulted in an increase in retail oil prices.
Against this background my focus, and that of the Government, is on interventions that can assist in mitigating to some degree, increases in energy prices.
At a general policy level this involves measures to improve energy efficiency and increase the penetration of renewable energy resources in the areas of electricity and transport.
I am very aware that many households are experiencing financial hardship due to the current economic difficulties. As such, the Government is taking a range of actions to address the challenge of affordable energy for vulnerable households. Over the last ten years €2 billion has been distributed in energy supports under the National Fuel Scheme and the Household Benefits Package administered by the Department of Social Protection.
In addition, €100 million has been spent, from my own Department’s Vote, on energy efficiency improvements in vulnerable homes. Permanent improvements to the thermal efficiency of houses are the most cost-effective means of addressing energy poverty.
The Sustainable Energy Authority of Ireland (SEAI) administers on behalf of my Department, the Better Energy Warmer Homes Scheme, which is free-of-charge to eligible applicants. With over 93,000 homes refurbished to date, 2013 will see approximately 10,000 low-income households benefit from energy efficiency upgrades. I have allocated approximately €20 million to the Warmer Homes Scheme in 2013.
More generally, the Government’s Strategy for Affordable Energy in Ireland was launched by me in November 2011. The Strategy sets out our plans for enhancing the affordability of energy for low-income households. The strategy includes 48 actions that will be implemented over the life of the Strategy.
The Inter-Departmental Group on Affordable Energy has established subgroups to work on particular dimensions of the Strategy. These include the implementation of revised eligibility criteria for the Warmer Homes scheme and a pilot programme to assess the feasibility of an area-based approach to delivery of the Scheme.
In the area of transport the development of electric vehicles offers potential for Ireland, not just in terms of energy efficiency but also because of the ability to use cheaper grid sourced electricity, an increasing amount of which will be sourced from renewable resources as we progressively deliver on our ambitious target of 40% renewable electricity generation by 2020. The Government has introduced a grant scheme for electric vehicles to provide an incentive to encourage their uptake.
In addition, the Biofuel Obligation Scheme incentivises and enables the sustainable growth of an Irish biofuels market affording opportunities for indigenous biofuel producers and allowing for the displacement of traditional oil products in the transport sector.
The Statutory Biofuel Obligation Scheme was introduced in July 2010 and currently requires that the amount of biofuel brought to the market is not less than 6.38% of the relevant disposal of petroleum road transport fuels. The Scheme ensured that 144.5 million litres of biofuel were brought to the Irish market in 2011. The Better Energy programme provides Exchequer supported incentives for energy efficiency and renewable energy upgrades, as well as bringing on board energy suppliers as partners to directly offer upgrade services to consumers.
Delivery on these commitments will progressively reduce our dependence on imported fossil fuels, while supporting energy competitiveness and security.
