Dáil Éireann Debate, Wednesday - 1 March 2023
41. Deputy Cian O'Callaghan asked the Minister for the Environment, Climate and Communications if he will provide an update on the work of the District Energy Steering Group; and if he will make a statement on the matter. [10417/23]
Amharc ar fhreagra42. Deputy Cian O'Callaghan asked the Minister for the Environment, Climate and Communications if he will take action to ensure district energy customers are charged at residential rates, rather than the more expensive commercial rates they currently pay; and if he will make a statement on the matter. [10418/23]
Amharc ar fhreagraI propose to take Questions Nos. 41 and 42 together.
The District Heating Steering Group was established under the Climate Action Plan 2021 to ensure structured development of district heating. The Report of the Steering Group is currently being finalised and contains recommendations in relation to the governance, finance, and planning. It will also include recommendations in relation to the economic regulation and consumer protection needs of the district heating sector and of smaller scale group heating schemes.
Group heating schemes are apartment blocks or housing developments that are supplied with heat rather than fuel and, in such cases, it is the heat supplier that is the purchaser of the fuel used. Where gas is being used, the provider may not fall within a domestic supply category and will be supplied under commercial terms and conditions.? I understand that such heating systems make up a very small proportion of household heating in Ireland.
While commercial prices have been lower than domestic gas prices, recent increases in energy prices have led to a sharp increase in commercial gas prices in particular. This has led to increases in the cost of providing heat by energy service providers. A central part of the journey from dependence on natural gas for heat lies with cost-effective energy efficiency measures and accelerated deployment of renewable energy sources, to include consideration of geothermal energy, where appropriate.
The results of the feasibility study initiated by the Sustainable Energy Authority of Ireland of moving a group scheme to a renewable energy source such as geothermal energy will be available in next few weeks. It will contain recommendations in order to improve the efficiency of the group heating scheme and an analysis of the most optimal alternative energy source for the scheme.
My Department is currently liaising with the Commission for Regulation of Utilities to ensure the development of an appropriate regulatory framework for district heating, which the Government plans to facilitate at scale in Ireland, to include regulation of group heating schemes, and this will take time and careful consideration. The statutory functions of the CRU in relation to regulation of district heating are contained in SI 350 of 2022 and SI 630 of 2022.
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 am 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.
