Dáil Éireann Debate, Tuesday - 26 July 2022
116. Deputy Holly Cairns asked the Minister for the Environment, Climate and Communications the steps that he is taking in response to rising electricity costs; and if he will make a statement on the matter. [40778/22]
View answerGovernment is acutely aware of the impact of high electricity and gas prices, and has introduced a range of measures to mitigate their impact. The most immediate factor affecting electricity prices in Ireland and Europe is high international gas prices where we are a price taker. Gas prices are now unprecedentedly high, which feeds directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas.
Such measures include the Electricity Costs Emergency Benefit Payment which credited domestic electricity accounts with €176.22 (excl. VAT), in addition to the range of measures introduced on 10 February to address increasing costs of living, including the lump sum payment for people on the Fuel Allowance of €125, which was paid to recipients in March. The fuel allowance year 2021/2022 recipients received a total of €1,139, compared to €735 in 2020/21.
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. The wider package of energy efficiency supports, available from SEAI, make it easier and more affordable for homeowners to undertake home energy upgrades. These include changes to the Warmer Homes scheme which sees a significant increase in the number of free energy upgrades for those most as risk of energy poverty - from 177 upgrades per month last year to 400 per month.
On 13 April, in the context of the Russian invasion of Ukraine, the Government published the National Energy Security Framework, which details of consumer supports and protections that are already in place and that are being enhanced including: - an additional €100 Fuel Allowance payment,- 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 reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.
In addition, under Response 6 of the Framework the Commission for Regulation of Utilities (CRU) will implement a package of measures to enhance protections for financially vulnerable customers and customers in debt by quarter 3 - ahead of the next heating season.
Government continues to monitor this unprecedented and evolving situation closely to inform ongoing consideration of further action.
