Dáil Éireann Debate, Tuesday - 8 September 2020
159. Deputy Brendan Smith asked the Minister for Climate Action and Communication Networks the measures in place to assist those on low incomes to avoid fuel poverty; the number living in fuel poverty; the impact fuel poverty has on low income families; if research will be commissioned into the number of families experiencing fuel poverty; and if he will make a statement on the matter. [22307/20]
View answerThe Government’s Strategy to Combat Energy Poverty was accompanied by a report on the level and extent of energy poverty in Ireland. This study looked at what the typical household has to spend on energy to keep their home heated and compared that to household income. This report found that in 2016, 28% of households in Ireland could be in or at risk of energy poverty. The ESRI carried out an assessment in 2019, using the same methodology, and found that the proportion in or at risk of energy poverty had reduced to 17.4%. These rates align closely to the level of basic deprivation experienced in Ireland. A separate ESRI study suggested that energy poverty is primarily a function of inadequate resources to cover living costs rather than simply an energy issue. The Government continues to prioritise support for people in or at risk of energy poverty through measures including:
(i) Income supports such as the Fuel Allowance provided by the Department of Employment Affairs and Social Protection
A €2 increase in the Fuel Allowance was introduced in January 2020. The Programme for Government commits to ensuring that increases in the carbon tax are progressive by spending €3 billion on targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition.
(ii) Energy efficiency upgrade schemes and the Energy Efficiency Obligation Scheme
Energy efficiency upgrades are provided free of charge to households at risk of energy poverty, mainly through the Warmer Homes scheme. The scheme is operated by the Sustainable Authority of Ireland (SEAI) on behalf of my Department. The Scheme has been in existence since 2000 and has provided upgrades to over 140,000 homes, leaving the occupants better able to afford to heat their homes to an adequate level. The 2020 budget of €52.8 million represents the biggest ever allocation for the scheme.
The Programme for Government commits to ring-fencing a significant portion of future carbon tax receipts for a new €5 billion socially progressive retrofit fund. The Government has also announced a €100 million increase in the SEAI budget for retrofit in 2021 as part of the recent July Stimulus package. This funding will be focused on community retrofit schemes, retrofit schemes supporting those in energy poverty as well as other initiatives to support the achievement of our retrofit targets.
(iii) Consumer protection measures
The 'Electricity and Gas Supplier’s Handbook', published by the Commission for the Regulation of Utilities, sets out minimum service requirements that suppliers must adhere to in their dealings with energy customers. This includes requirements on suppliers to provide for a Code of Practice on Vulnerable Customers and a Code of Practice on Disconnection. These requirements ensure that vulnerable customers will not be disconnected. They also ensure that disconnection of a customer’s supply will not be initiated by a supplier where a customer in financial difficulty has entered into a payment plan with their supplier and is honouring that arrangement.
In addition to the above, a programme of work is being undertaken with the ESRI to examine the distributional benefits of utilising carbon tax receipts as set out in the Programme for Government, including the impact of retrofitting on alleviating fuel poverty.
