Dáil Éireann Debate, Wednesday - 2 May 2012
6Deputy Willie O’Dea asked the Minister for Communications; Energy and Natural Resources if his attention has been drawn to the difficulties faced by many families in heating their homes in view of increasing energy prices; and if he will make a statement on the matter. [21935/12]
Amharc ar fhreagraI am very aware that many families are experiencing financial hardship including the cost of heating their homes, due to the current economic difficulties.
I have no statutory function in the setting of energy prices, whether in the regulated or non-regulated market. Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, CER, which is an independent statutory body. The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market.
The Government is, however, taking a range of actions to address the challenge of affordable energy for vulnerable families. The Government's strategy for affordable energy in Ireland was launched by me last November. The strategy sets out our plans for enhancing the affordability of energy for low-income households. The strategy was developed by the interdepartmental group on affordable energy and includes 48 actions that will be implemented over the life of the strategy. The interdepartmental group on affordable energy has established subgroups to work on particular dimensions of that strategy and these include the immediate priority of revising eligibility criteria for the warmer homes scheme and a pilot programme to assess the feasibility of an area-based approach to delivery of the scheme.
It is worth noting that in the past ten years €2 billion has been distributed in energy supports under the national fuel scheme and the household benefits package, while €80 million has been spent on energy efficiency improvements in vulnerable homes. Permanent improvements to the thermal efficiency of houses are the most cost effective means of addressing energy poverty. More immediately, the Sustainable Energy Authority of Ireland, SEAI, continues to administer, on behalf of my Department, Warmer Homes which is free of charge to eligible applicants. With more than 81,000 homes refurbished to date, 2012 will see a further 17,000 low-income households benefit from energy efficiency upgrades. I have allocated just over €17 million to the warmer homes scheme this year. This allocation underlines the Government's commitment to the affordable energy priority.
I thank the Minister. He will be aware that the Irish League of Credit Unions recently conducted a survey of its membership. The survey was widely reported and was a credible piece of research. Some of the findings related to energy costs. One in four respondents said they cannot cope with rising energy prices, 15% said they had to dip into their savings to deal with rising energy costs and 8% said they were unable to cover their household bills. Some very stark facts and figures were disclosed in the research.
We know from the Sustainable Energy Authority of Ireland, SEAI, that between November 2010 and November 2011 the price of natural gas rose by between 12% and 20%, gas oil rose by 21%, bulk propane went up by 16% and kerosene by 28%. The cost of solid fuel fell by 3% and that of briquettes rose by 1%.
The cost to householders has been enormous in that period and people are clearly struggling with regard to it. The Minister mentioned that he published a fuel poverty strategy that lists 48 action points to be addressed. What progress has been made in the implementation of that action plan? Since he published the action plan in November of last year, has the Minister seen a tangible drop in any of the prices I have quoted? If not, when can we expect to see such a drop?
The primary focus of the strategy is to improve thermal efficiency in homes that are at risk. It is not focused on bringing down the price of gas or oil. Gas and oil are imported into the country. We are price takers and there is very little we can do about that. We can, however, reduce our consumption and address the inefficient circumstances in which many people live.
The Deputy is correct. There is a real problem of fuel poverty. I entirely accept that. We are fortunate to have had a particularly mild winter at a time when the price of gas has risen across the western world. Different factors are at play in the United States. As price takers, we are at the receiving end of all of that.
If the Deputy focuses on the rationale behind the affordable energy strategy he will recognise that we will get best bang for our buck if homes are properly insulated and thermally efficient. I am afraid that is, generally, not the case. The work done so far, and the examination of it by the SEAI, shows how successful that work has been. Because of the mild winter it appears there has been a fall-off in applications, which is surprising. That fall-off is also affecting the warmer homes scheme, where there is no charge. The work is done by the State on homes that need it. Even in that area, there has been a fall-off. We will have a meeting on that scheme later this evening, because there is no doubt it is the best and most productive use of taxpayers' money.
7Deputy Peadar Tóibín asked the Minister for Communications; Energy and Natural Resources the steps taken by him to promote energy efficiency and so reduce costs and increase competitiveness of small and medium enterprises. [20901/12]
Amharc ar fhreagraThe Sustainable Energy Authority of Ireland, SEAI, administers the workplaces efficiency fund as part of the better energy programme. The better energy programme is in line with the key criteria governing the Government's investment priorities and is consistent with the programme for Government objectives. It is also consistent with the Government's Action Plan for Jobs which includes specific actions to promote energy efficiency in businesses to reduce costs and enhance competitiveness.
The Government has committed significant Exchequer funding of €76 million to the better energy programme in 2012, including €8 million to the workplaces efficiency fund.
The SEAI is promoting energy efficiency across all business sectors with specific supports for small and medium sized enterprises, SMEs, to assist them in saving energy and reducing energy costs. To date, approximately 2,000 SMEs have registered with SEAI. Each of these businesses has received advice and mentoring which generally involves a site visit and follow-up support from an energy adviser. This is a free service and I would urge all SMEs to avail of the advice and supports.
The SEAI programme for SMEs also provides tailored training packages to SMEs to suit their individual needs. SEAI provides a range of advice on technologies and relevant practical case studies through the programme.
Last year, the better energy workplaces programme successfully supported energy efficiency measures for many businesses and institutions across the country. Some 85 specific projects were completed across all sectors. The €11 million fund generated annual energy savings of €11 million and leveraged a further €34 million of investment in energy efficiency, representing an excellent return on investment for the Exchequer, real savings for the businesses themselves, and economic activity in its own right.
Of the 85 projects supported, 21 were classified as SMEs.
Additional information not given on the floor of the House.
The SEAI is also working in partnership with Enterprise Ireland, the Environmental Protection Agency, EPA, and others, including ISME, to ensure their clients are fully aware of the services offered to SMEs by the SEAI. There is co-operation between the EPA, offering waste and water efficiency assistance, and the SEAI, providing energy efficiency assistance, to ensure Irish businesses receive the best advice and support to deliver efficiencies and savings for their bottom lines, thus improving their competitiveness and sustaining jobs.
It is apparent much more tolerance is being shown this year compared to last year by energy suppliers to people and especially small businesses which are in difficulty, which is to be welcomed. That is the situation from my knowledge of what is happening. Coming on top of the downturn, energy costs are probably among the most crippling for small and medium businesses in terms of their survival. The Minister outlined in a previous reply the level of increase in energy costs, for example, 21%, 29%, 16% and 28% in the various fuels available. The only fuel in respect of which there was a reduction - of 3% - was solid fuel. I cannot emphasise sufficiently the importance, particularly in the current climate, of necessary supports to ensure small businesses survive. Small businesses are especially important in peripheral areas for the fabric of society we are trying to maintain. They need all the support they can get.
I agree with the Deputy that the supplier companies have shown an understanding of current circumstances and, in the case of some small and medium enterprises, SMEs, energy costs are particularly onerous in terms of their running costs. In addition, I was happy to put in place the protocol for domestic users where there was an undertaking that there would not be disconnections during the winter provided people eithered install a meter or signed up to a pay plan. Where there has been a take-up of these options, the approach has been very successful.
The Deputy is correct that energy costs weigh heavily on many SMEs. The planned scheme by the Sustainable Energy Authority of Ireland, SEAI, to which I referred, is worthy and will prove useful to SMEs. The SMEs which have participated have pointed to the impact it has had on their operating costs. There is a great deal of room for greater energy efficiency in SMEs throughout the country. That is the area in which savings can be made and businesses can thrive as a result. The SEAI scheme has shown a capacity to leverage private sector funding also. I would like to be in a position to put more money into the scheme but in current circumstances that is very difficult. However, it is one of the options we are considering because it would make a significant contribution for many SMEs which find the energy component of their costs very difficult, given current world market prices.
