Dáil Éireann Debate, Wednesday - 12 October 2022
22. Deputy Robert Troy asked the Minister for the Environment, Climate and Communications if he will provide clarity on the projected increase in gas power supply pricing over the coming 12-month period. [50526/22]
Amharc ar fhreagraThe 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. Natural gas futures prices for next year are fluctuating but are averaging around 450 pence per therm. The Government is acutely aware of the impact of high electricity and gas prices on households and businesses. This is why the Government introduced a €2.4 billion package of supports in 2022 and a package of one-off measures worth €2.5 billion in the Budget 2023 cost of living package. This includes a new Electricity Cost Emergency Benefit Scheme through which €550.47 (exclusive of VAT) will be credited to each domestic electricity account, including Pay as You Go accounts, in three payments of €183.49 through the November/December 2022, January/February 2023 and March/April 2023 billing cycles. This is in addition to an extension of the 9% VAT rate on electricity and gas until February 2023 and lump sum payments to social welfare recipients of schemes such as the Fuel Allowance, the Living Alone Allowance, and the Working Family payment.
Furthermore, at the EU Energy Council meeting on 30th September, European Energy Ministers agreed to an EU package of emergency measures. The agreed measures include:
- A cap on excess revenues made by energy producers not using gas to produce electricity. All revenues that exceed that cap will be returned to electricity customers.
- A solidarity payment to capture part of the surplus profits being made by fossil fuel companies, again to be return to electricity customers.
- An EU wide plan to introduce energy reduction measures, particular targeting the peak hours of 5-7pm to lower the need for expensive gas generation to meet that peak demand.
The details of the agreed measures are now being worked out but are expected to provide additional funding to distribute strategically to those put most at risk by high prices over the coming months.
