Dáil Éireann Debate, Thursday - 30 September 2021
149. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications if he has carried out a poverty analysis of the impact that energy price-hikes are having on those most vulnerable; the way that his Department is applying a just transition model to the current situation; and if he will make a statement on the matter. [47250/21]
View answerThe electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets is solely a matter for the Commission for Regulation of Utilities (CRU). Given that prices are not regulated, they are set by all suppliers as entirely commercial and operational matters by them. The position of successive Governments, for almost twenty years, has been that competitive energy markets result in greater choice for consumers and businesses, in terms of suppliers, products and prices and to support competition to drive down prices. Data from approved price comparison sites shows that consumers can make significant savings by switching energy suppliers and this can mitigate the impact of price rises for consumers. Protections are in place for those falling into difficulty with their energy bills. Under the supplier led voluntary Energy Engage Code, suppliers will not disconnect a customer who is engaging with them. Suppliers must also provide every opportunity to customers to avoid disconnection and must identify customers at risk of disconnection and encourage them to engage with them as early as possible. Suppliers are also obliged to offer a range of payment options, such as a debt-repayment plan for a customer in arrears. Where possible, suppliers must also offer customers with difficulties paying their bills a prepayment meter or budget controller.
Income supports including the Fuel Allowance and the Household Benefits Package are available from the Department of Social Protection (DSP) to help households with the costs of heating their homes. The Fuel Allowance payment, of €28.00 per week for 28 weeks, which is a total of €784 from October to April, will be provided to approximately 370,000 low-income households. The purpose of this payment is to assist these households with their energy costs. In addition, the Minister for Social Protection also provides an electricity or gas allowance under the Household Benefits scheme. This is paid at a rate of €35 per month, 12 months of the year. In addition, DSP also funds an exceptional needs payment, which can include support with fuel bills in some cases.
Improving the energy efficiency of a home can also help to protect households from energy poverty. This year, €221.5 million in capital funding has been allocated to SEAI residential and community retrofit programmes. This represents an 82% increase on the 2020 allocation and is the largest amount ever for the schemes. Of this amount, €109 million is allocated to provide free upgrades for lower income households. An Additional €65 million is allocated to improve the energy efficiency of social housing.
