Robert Dowds
Question:498. Deputy Robert Dowds asked the Minister for Communications, Energy and Natural Resources his plans to reduce the cost of imported oil. [3862/13]
View answerTuesday, 29 January 2013
Questions (498, 499)
Robert Dowds
Question:499. Deputy Robert Dowds asked the Minister for Communications, Energy and Natural Resources his plans to reduce the amount of oil imported into Ireland. [3863/13]
View answerWritten answers
I propose to take Questions Nos. 498 and 499 together.
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. Increases in oil prices arise primarily from 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. Upward trends in global oil prices underscores the Government’s commitment to delivering national energy efficiency and renewable energy objectives, which are aimed at moving the economy away from reliance on imported, carbon intensive fossil fuels such as oil.
The electrification of transport offers huge potential for Ireland, not just in terms of energy efficiency but also because of the ability to use cheaper electricity, an increasing amount of which will be sourced from renewable resources as we progressively deliver on our ambitious target of 40% renewable generation by 2020. 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 4.166% 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.
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. Delivery on these commitments will progressively reduce our dependence on imported fossil fuels such as oil, while supporting energy competitiveness and security.