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Fuel Poverty

Dáil Éireann Debate, Tuesday - 19 October 2021

Tuesday, 19 October 2021

Questions (281, 282, 283, 298, 304)

Darren O'Rourke

Question:

281. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will provide details of the definition that his Department uses for energy poverty or fuel poverty; and if he will make a statement on the matter. [51000/21]

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Darren O'Rourke

Question:

282. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will provide details of the methodology for measuring and tracking energy and fuel poverty levels that his Department uses; and if he will make a statement on the matter. [51001/21]

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Darren O'Rourke

Question:

283. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated number of households in energy or fuel poverty in 2021; and if he will make a statement on the matter. [51002/21]

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Darren O'Rourke

Question:

298. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the average cost to the State of retrofitting a home for those living or at risk of energy poverty; and if he will make a statement on the matter. [51293/21]

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Darren O'Rourke

Question:

304. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the reason he did not increase the €109 million retrofitting budget for those living or at risk of energy poverty in Budget 2022 compared to Budget 2021; and if he will make a statement on the matter. [51299/21]

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Written answers

I propose to take Questions Nos. 281, 282, 283, 298 and 304 together.

Energy poverty or fuel poverty is influenced by a person’s income, the energy efficiency of their home and the cost of the energy they use in their home. My Department defines energy poverty as an inability to heat or power a home to an adequate degree. Analysis carried out in 2016 for the Strategy to Combat Energy Poverty found that 28% of households in Ireland could be in energy poverty i.e. would need to spend more than 10% of their income on their energy needs.

Good progress has been made since the launch of the Strategy.  The ESRI carried out an analysis of the number of households at risk of experiencing energy poverty in 2019 and again in 2020. This showed that the share of households needing to spend more than 10% of their income on their energy needs was 17.5% in 2020.  The Survey on Income and Living Conditions supports this, indicating that the proportion of people who report that they are unable to afford to keep the home adequately warm, has fallen from 9% in 2015 to 4.9% in 2019. Details in relation to 2021 are not yet available.

Government policy for a number of years has focused on supplementing lower income households through the Fuel Allowance and other payments, as well as providing free energy efficiency upgrades through the Sustainable Energy Authority of Ireland schemes and the Social Housing retrofitting programme.

The Better Energy Warmer Homes Scheme delivers a range of energy efficiency measures free of charge to low-income households vulnerable to energy poverty. To date, over 143,000 homes have received free upgrades under the scheme.  In the first six months of 2021, the average value of the energy efficiency measures provided per household was approximately €17,100.

Budget 2022 has allocated €202 million for residential and community retrofit next year. Over half of this (€109 million) will be used to provide free energy efficiency upgrades to households that are in, or at risk of, energy poverty. The Minister for Housing, Local Government and Heritage will invest a further €85 million as part of the Social Housing Retrofit Programme in 2022. Overall, this represents an allocation of €194 million to retrofitting homes of those most at risk of energy poverty next year - an increase of €20 million on this year’s allocation.

While the budget for SEAI energy poverty schemes next year has not increased, it should be noted that COVID-19 related restrictions on construction activity between January and April had a significant impact on activity and actual expenditure this year. Every effort is being made to maximise activity now that construction activity in the residential sector has recommenced.

Budget 2022 also provided for a €5 increase to the Fuel Allowance to €33 per week, or €924 per year, as well as an extension of the eligibility criteria for the payment, by the Minister for Social Protection.  A review of the implementation of the Strategy to Combat Energy Poverty will be completed this year and will inform next steps in relation to the development of a new strategy.  Measures to support those least able to afford to retrofit their homes will also be a key consideration for the new National Retrofit Plan which will be published later this year.

Question No. 282 answered with Question No. 281.

Question No. 283 answered with Question No. 281.

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