District heating schemes are large-scale systems that are supplied by one or several centralised or decentralised heat sources and serve multiple buildings and multiple customers. Group, or communal, heating schemes are smaller-scale systems that supply single buildings or complexes for an estimated 11,000 residential customers. End users in group or communal heating schemes are supplied with heat rather than fuel and the heat supplier in these schemes purchases the fuel at commercial rates, primarily natural gas. While I understand that these schemes have, historically, benefitted from lower prices, gas prices are affected by international developments, and recent events have resulted in significant increases to gas prices.
Protection from disconnections would not be extended to third party energy service providers, who are the customers in relation to gas purchases for group heating schemes. However, there are Government supports and protections targeted at the end user customers. Throughout 2022, the Government introduced a €2.4 billion package of supports to support households and businesses, and as part of Budget 2023, introduced a package of measures worth €2.5 billion. This included the €1.211 billion Electricity Cost Emergency Benefit Scheme, through which €600 (inclusive of VAT) is being credited to each domestic electricity account in three payments. The third €200 electricity credit is due to be applied in March/April. This was applied through the electricity system to ensure maximum reach to customers.
Furthermore, any individual that is in need of additional support to facilitate their continued energy supply, should apply for an Additional Needs Payment provided by the Department of Social Protection. I'm assured that every effort is being made to ensure that any individual that qualifies, receives an Additional Needs Payment on the same day or as soon as possible where it relates to electricity and heating expenses.
On 13 December, Government approved a new Energy Poverty Action Plan, which provides for the establishment of a €10 million fund to further support people in, or at risk of, energy poverty this winter and into 2023. The fund will ensure that people in most need can access financial supports quickly and directly provide a further safeguard in addition to the supports from supplier hardship funds and the Additional Needs Payment operated by the Department of Social Protection. The Money Advice and Budgeting Service (MABS) is also available to provide budgeting advice and advocacy support.
My Department is working to develop an appropriate regulatory framework in order to ensure a sound basis for the expansion of district heating, to include smaller scale group and communal heating schemes. In that light, the Commission for Regulation of Utilities (CRU) has been appointed as Regulator for district heating networks and will be responsible for regulation of the sector going forward. The regulatory needs of the sector, to include group and communal heating schemes, require further, detailed examination and this is being undertaken by the CRU as a matter of priority.
