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Gas and Electricity Disconnections

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Ceisteanna (993)

Tom Fleming

Ceist:

993. Deputy Tom Fleming asked the Minister for Communications; Energy and Natural Resources his plans to address the impact of rising costs of oil, petrol, gas and diesel on households and businesses which are struggling to meet their household bills throughout the country; and if he will make a statement on the matter. [38724/12]

Amharc ar fhreagra

Freagraí scríofa

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 gas market 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 upward trend in global oil and gas prices arises primarily from the increases in the international prices for these commodities over which Ireland has no control. For example, the spot price of a barrel of Brent Crude Oil has risen from a low of $90 in June 2012 to $116 yesterday. This represents an increase of 29% in less than three months. This has inevitably resulted in an increase in retail oil prices. International gas prices have also risen leading to the increase in regulated gas prices as sanctioned by the Commission for Energy Regulation.

Against this background my focus and that of the Government is on interventions that can assist in mitigating to some degree, increases in energy prices. At a general policy level this involves measures to improve energy efficiency and increase the penetration of renewable energy resources in the areas of electricity and transport.

I am very aware that many households are experiencing financial hardship due to the current economic difficulties. As such the Government is taking a range of actions to address the challenge of affordable energy for vulnerable households.

In specific terms over the last ten years €2 billion has been distributed in energy supports under the National Fuel Scheme and the Household Benefits Package administered by the Department of Social Protection 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. In this regard, the Sustainable Energy Authority of Ireland (SEAI) administers on behalf of my Department, the Better Energy Warmer Homes Scheme, which is free-of-charge to eligible applicants. With over 85,000 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.

More generally, 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 includes 48 actions that will be implemented over the life of the Strategy.

The Inter-Departmental Group on Affordable Energy has established subgroups to work on particular dimensions of the Strategy. These include the implementation of revised 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.

In the area of transport the development of electric vehicles offers potential for Ireland, not just in terms of energy efficiency but also because of the ability to use cheaper grid sourced electricity, an increasing amount of which will be sourced from renewable resources as we progressively deliver on our ambitious target of 40% renewable generation by 2020. The Government has introduced a grant scheme for electric vehicles.

In addition, the Biofuel Obligation Scheme incentivises and enables the sustainable growth of an Irish biofuels market affording opportunities for indigenous biofuel producers and allowing for the displacement of traditional oil products in the transport sector.

The Statutory Biofuel Obligation Scheme was introduced in July 2010 and currently requires that the amount of biofuel brought to the market is not less than 4.166% of the relevant disposal of petroleum road transport fuels. The scheme ensured that 144.5 million litres of biofuel were brought to the Irish market in 2011.

The Better Energy programme provides Exchequer supported incentives for energy efficiency and renewable energy upgrades, as well as bringing on board energy suppliers as partners to directly offer upgrade services to consumers.

Delivery on these commitments will progressively reduce our dependence on imported fossil fuels, while supporting energy competitiveness and security.

Question No. 994 answered with Question No. 981.
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