Dáil Éireann Debate, Tuesday - 12 July 2022
426. Deputy Joe Flaherty asked the Minister for Housing, Local Government and Heritage if he will give an assurance that Longford County Council will be compensated in respect of the significant, unavoidable and unbudgeted over-spend for the housing retrofit scheme (details supplied). [37608/22]
View answerSince 2013, Exchequer funding has been provided through my Department's Energy Efficiency Retrofit Programme (EERP) to support local authorities with the retrofit of local authority owned homes requiring insulation and energy upgrade works. Since the programme commenced in 2013 over 75,000 homes have been retrofitted with a total exchequer spend of €184 million under the scheme.
In response to the Programme for Government commitment, my Department launched a newly revised ten year Energy Efficiency Programme in 2021 for local authority owned housing. This new programme set a BER performance requirement of “B2” or cost optimal level. The upscaling of the works included in the programme sees a substantial overall increase in funding being made available for insulation, windows and doors and heating upgrades, specifically the installation of a Heat Pump and associated works.
An annualised breakdown of the total funding provided and the number of properties upgraded under the Energy Efficiency Retrofit programme for the years 2013-2021 is available on my Department's website at the following link: www.gov.ie/en/publication/668c1-energy-efficiency-retrofitting-programme-expenditure-output/.
My Department also introduced a pilot Midlands Energy Retrofit Programme (MRP) in 2020-2022, the details of which are found below. A further 146 properties were retrofitted to a BER of B2/ Cost Optimal Equivalent and these figures are in addition to the National Retrofit Programme.
gov.ie - Midlands Energy Retrofit Programme - Expenditure and Units (www.gov.ie)
Earlier this year, my Department announced that funding of €85 million will be provided for the upgrade of approximately 2,400 social homes in 2022. Each local authority received an individual allocation along with a minimum target of homes they are required to retrofit.
Under the 2022 EERP programme, my Department funds costs of up to €48,850, plus project management fees, on individual local authority homes. The actual cost of retrofitting works on each home will depend on its pre-works BER but can be as low as €16,350 in some cases. Targets set and funding allocated to local authorities under the new programme calls for local authorities to undertake retrofitting on a variety of house types, from those requiring minimal investment to those requiring major investment, in order to achieve the B2/Cost Optimal BER. Local authorities are asked to ensure that the average cost per home drawn down under the programme is circa €36,000, including project management fees. Adhering to this average will ensure that the maximum number of homes can be retrofit with the available budget and limit the exposure of the LA to additional costs.
An official from my Department met with the relevant local authority last week to consider the issues which have arisen. My Department is also currently reviewing claims submitted from the local authority in relation to their 2021 works programme with a view to recouping the cost of all eligible works carried out.
