Energy poverty, or fuel poverty is influenced by a person’s income, the energy efficiency of their home, and the cost of the energy they use in their home. In 2020, the ESRI estimated that 17.5% of households in Ireland could be at risk of energy poverty. Lower income households living in inefficient homes are more at risk of energy poverty when energy prices increase, as the proportion of their income needed to meet their energy needs increases. The Government has put a range of policies and measures in place to support households who are at risk of energy poverty. These measures supplement lower income households through the Fuel Allowance, the Household Benefits Package and other payments, as well as providing free energy efficiency upgrades through the Sustainable Energy Authority of Ireland schemes and the Social Housing retrofitting programme. 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. Recognising the unprecedented rise in energy prices facing people the Government has also put in place a number of additional measures earlier this year including:
· an increase in the weekly rate of the Fuel Allowance by €5 to €33 a week so that €914 was paid to eligible households over the course of the winter, an additional lump-sum payment of €125 was paid to the 370,000 households receiving the fuel allowance in mid-March.
the Electricity Costs Emergency Benefit Payment of €176.22 (excl. VAT) credited to their accounts.
the new National Retrofit Schemes include specific measures to support householders in taking actions to reduce energy bills, including up to 80% grant funding for low-cost, high-impact measures such as attic insulation.
To further manage the impact of recent price increases the Government, in the recently published National Energy Security Framework, has also announced a number of additional measures for households and businesses including:
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 package of measures to enhance protections for financially vulnerable customers and customers in debt in the electricity and gas sectors.
A review of the price-drivers behind electricity and natural gas bills (including network costs) with a view to mitigating cost increases for consumers and businesses in the near term.
The continuation of the excise duty reduction on petrol, diesel and marked gas oil until the Budget in October 2022.
A reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.
An additional payment of €100 for all recipients of the Fuel Allowance.
The reduction to zero of the Public Service Obligation (PSO) levy on electricity bills.
In addition to the measures outlined above, the electricity and gas markets, which are overseen by the Commission for Regulation of Utilities, have a range of protections against disconnections in place for consumers. In brief, priority customers cannot be disconnected, while vulnerable customers are protected over winter months from 1 November to 31 March each year. Additionally, under the supplier led voluntary Energy Engage Code, suppliers will not disconnect a customer who is engaging with them at any time. Accordingly, any customers who are experiencing difficulties with their Bills should engage with their supplier to discuss the various options and assistance available.
A research network on fuel poverty chaired by the Economic and Social Research Institute was established in 2021. The Group consists of representatives from the Department of the Environment, Climate and Communications, the Department of Social Protection, the Sustainable Energy Authority of Ireland and the Central Statistics Office. The Group has commenced examination of the data and metrics needed to improve existing measures for fuel poverty in Ireland. The main goal is to provide insights that enhance policy design to protect vulnerable households. A work programme, proposed outputs and timelines will be agreed and finalised shortly.
A review of the implementation of the Strategy to Combat Energy Poverty will be completed in the coming weeks to inform future policy development in this area.
