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Energy Prices

Dáil Éireann Debate, Wednesday - 18 January 2023

Wednesday, 18 January 2023

Questions (67, 89)

Richard Boyd Barrett

Question:

67. Deputy Richard Boyd Barrett asked the Minister for the Environment, Climate and Communications further to Parliamentary Question No. 173 of 29 November 2022, when a response will issue in relation to the protections that are in place for district heating customers who prepay for gas in order to prevent any disconnection of service if they cannot pay their bills this winter; and if he will make a statement on the matter. [63291/22]

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Paul Kehoe

Question:

89. Deputy Paul Kehoe asked the Minister for the Environment, Climate and Communications the way district energy schemes are regulated; the rationale for not doing so under the Commission for Regulation of Utilities; the reason residential customers are then billed as commercial customers, given that part of the rationale for a just transition is energy and cost efficiency; and if he will make a statement on the matter. [63937/22]

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Written answers

I propose to take Questions Nos. 67 and 89 together.

District heating schemes are large-scale systems that are supplied by one or several centralised or decentralised heat sources, with multiple buildings and multiple customers. Group heating schemes are smaller-scale systems that supply single buildings or complexes. In relation to group heating schemes, it is the heat supplier that purchases the fuel, predominantly gas in current systems. Therefore, a commercial tariff is applied due to the scale of the purchase.

The Government is committed to expansion of district heating making use of renewable and waste energy sources, as this technology can contribute to diversification of fuel supply for heat, decarbonisation of the heat sector, and security of supply.

My Department is working to develop an appropriate regulatory framework in order to ensure a sound basis for the expansion of district heating. Under S.I. 350/2022, the Commission for Regulation of Utilities (CRU) has been appointed as Regulator for district heating networks and will be responsible for regulation of the sector going forward. The regulatory needs of the sector, to include group and communal heating schemes, require further, detailed examination, and this is being undertaken by the CRU as a matter of priority.

To assist in identifying alternative heat sources for group heating schemes in particular, the Sustainable Energy Authority of Ireland has initiated a feasibility study to examine the technical potential of moving schemes fuelled by natural gas to a renewable energy source. It is anticipated that initial results will be available early this year.

While I have no function in the day-to-day business operations of individual companies, in order to help alleviate the impact of the rising cost of living on households Government has put in place a series of measures, with funding of €2.4 billion available. A further package of once off measures worth €2.5 billion was announced in Budget 2023, including the Electricity Cost Emergency Benefit Scheme II which is being applied to domestic electricity accounts as a universal support to all households.In addition to supports for energy costs such as the Household Benefits Package and the Fuel Allowance, people can apply to the Community Welfare Service (CWS) for assistance with essential costs that they cannot reasonably be expected to meet from their income. Such payments are subject to income tests and an assessment of need.

The Energy Poverty Action Plan also sets out the actions the Government has put in place to tackle energy poverty and help people to pay their energy bills as part of the wider cost of living crisis.

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