Holly Cairns
Ceist:157. Deputy Holly Cairns asked the Minister for the Environment, Climate and Communications the steps that he is taking to address rising energy costs for households. [44337/22]
Amharc ar fhreagraThursday, 8 September 2022
Ceisteanna (157)
Freagraí scríofa
The unprecedented increase in international wholesale gas prices have continued as result of the volatility in the international gas market driven by the Russian invasion of Ukraine and the on-going war. These gas increases feed directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas.
The Government is acutely aware of the impact on consumers of high electricity and gas prices, and has introduced a range of measures to mitigate their impact. Under the Electricity Costs Emergency Benefit Scheme, a payment of €176.22 was made to domestic electricity accounts between April and May of this year at a total cost of €376,923,830.58. The scheme was part of a €505m package of measures, which included increases in the Fuel Allowance which brought the total payment to €1139 for the 2021/22 winter compared to €735 in winter 2020/21 and a reduction in VAT on electricity bills from 13.5% to 9%. On foot of Response 6 of the National Energy Security Framework, on 25 August, the Commission for Regulation of Utilities (CRU) announced enhanced consumer protection measures to be implemented by electricity and gas providers ahead of the coming winter. This means that from 1 December 2022 until 28 February 2023 no domestic customers can be disconnected while vulnerable customers cannot be disconnected from 1 October 2022 until 31 March 2022. This is in addition to the existing protections for vulnerable customers registered as being critically dependent on electrically powered assistive devices who cannot be disconnected for reasons of non-payment at any time. On energy efficiency, the Government supports are considerable. Earlier this year the government announced a package of supports to make it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills and lower emissions. A budget allocation of €109 million has been provided for this scheme this year. This will support an increase in the number of free home upgrades, from an average of 177 per month in 2021 to 400 per month this year, helping to reduce waiting times. Responsibility for the regulation of the retail electricity and gas markets was assigned to the CRU under the 1999 Electricity Regulation Act and subsequent legislation. CRU ceased price setting for electricity and gas in 2011 and 2014. Therefore, the setting of prices and charges is a commercial matter for individual supply companies. The Government has already put a €2.4 billion package of measures in place to support people to meet the cost of energy and continues to monitor this unprecedented and evolving situation closely to inform ongoing consideration of further action, particularly in the context of the imminent Budget 2023. The best long-term approach for Ireland to insulate consumers from volatility on international wholesale energy markets is to invest in energy efficiency, renewable energy and expand interconnection with European and neighbouring markets and deepen internal market integration.