Dáil Éireann Debate, Thursday - 12 May 2022
170. Deputy Violet-Anne Wynne asked the Minister for the Environment, Climate and Communications the methodologies, reports, databases, statistics and all other relevant sources used by his Department to measure fuel and energy poverty; and if he will make a statement on the matter. [23962/22]
View answerEnergy poverty is influenced by a person’s income, the energy efficiency of their home and the cost of the energy they use. Recent measurements of the share of households likely to be experiencing energy poverty include:
- In 2019 and 2020 the Economic and Social Research Institute assessed the number of households likely to be spending more than 10% of their income on energy needed. In the 2020 analysis, this was estimated to be 17.5% of households;
- The Survey of Income and Living Conditions is carried out annually by the CSO and gives an indication of the number of households experiencing difficulty in keeping their homes warm. In the survey results for 2021, the proportion of people who reported that they were unable to afford to keep their home adequately warm was 3.2%.
A research network on fuel poverty chaired by the Economic and Social Research Institute has been established to examine the data and metrics needed to improve existing measures for fuel poverty in Ireland. The group consists of representatives from my Department, the Department of Social Protection, the Sustainable Energy Authority of Ireland and the Central Statistics Office. The Group has commenced examination of the data and metrics needed to improve existing measures for fuel poverty in Ireland. The main goal is to provide insights that enhance policy design to protect vulnerable households. A work programme, proposed outputs and timelines will be agreed and finalised shortly.
The Government has put a range of policies and measures in place to support households who are at risk of energy poverty. These measures supplement lower income households through the Fuel Allowance, the Household Benefits Package 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. This year, 58% (€203 million) of the total Government retrofit budget of €352 million will be spent on dedicated energy poverty retrofit supports and local authority retrofits.
Recognising the unprecedented rise in energy prices facing people the Government has also put in place a number of additional measures earlier this year including:
- an increase in the weekly rate of the Fuel Allowance by €5 to €33 a week so that €914 was paid to eligible households over the course of the winter, an additional lump-sum payment of €125 was paid to the 370,000 households receiving the fuel allowance in mid-March.
- the Electricity Costs Emergency Benefit Payment of €176.22 (excl. VAT) credited to their accounts.
- the new National Retrofit Schemes include specific measures to support householders in taking actions to reduce energy bills, including up to 80% grant funding for low-cost, high-impact measures such as attic insulation.
To further manage the impact of recent price increases the Government, in the recently published National Energy Security Framework, has also announced a number of additional measures for households and businesses including:
- A new targeted €20 million scheme for the installation of Photo Voltaic (PV) panels for households that have a high reliance on electricity for medical reasons.
- A package of measures to enhance protections for financially vulnerable customers and customers in debt in the electricity and gas sectors.
- A review of the price-drivers behind electricity and natural gas bills (including network costs) with a view to mitigating cost increases for consumers and businesses in the near term.
- The continuation of the excise duty reduction on petrol, diesel and marked gas oil until the Budget in October 2022.
- A reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.
- An additional payment of €100 for all recipients of the Fuel Allowance.
- The reduction to zero of the Public Service Obligation (PSO) levy on electricity bills.
In addition to the measures outlined above, the electricity and gas markets, which are overseen by the Commission for Regulation of Utilities, have a range of protections against disconnections in place for consumers. In brief, priority customers cannot be disconnected, while vulnerable customers are protected over winter months from 1 November to 31 March each year. Additionally, under the supplier led voluntary Energy Engage Code, suppliers will not disconnect a customer who is engaging with them at any time. Accordingly, any customers who are experiencing difficulties with their Bills should engage with their supplier to discuss the various options and assistance available.
