2026-06-11

12. Deputy Joe Cooney asked the Minister for Climate, Energy and the Environment to outline if his Department has undertaken an impact assessment of the current high cost of electricity on the Government's own electrification and decarbonisation targets; the measures that are in place to ensure that the cost of necessary grid infrastructure investment does not fall disproportionately on domestic consumers; and if he will make a statement on the matter. [44140/26]

38. Deputy Joe Cooney asked the Minister for Climate, Energy and the Environment the steps being taken to ensure that retail electricity prices are brought to a level that makes electrification a genuinely affordable proposition for ordinary households, given the Government’s ambition to accelerate the electrification of Irish homes through heat pumps, electric vehicles, and other demand-side measures; and if he will make a statement on the matter. [44139/26]

I welcome the opportunity to raise this important matter. Has the Department looked into the impact of high electricity prices in Ireland on the uptake of technology like heat pumps, electric vehicles, EVs, and home batteries that are needed to meet our decarbonisation target, and how that might impact on our 2030 targets?

I propose to take Questions Nos. 12 and 38 together. I thank the Deputy for his question. The Commission for Regulation of Utilities, CRU, is currently undertaking a multi-annual review of electricity network tariffs. Electricity network tariffs recover the costs of developing, operating, and maintaining the networks from the users connected to the electricity networks. The review will seek to put in place a framework for how network tariffs should be structured to ensure they are in the best interest of consumers, are fit for purpose for the modern evolving electricity networks and to help facilitate a low-carbon future. The tariff review will take account of upcoming legal proposals from the European Commission on network charges which are expected to be published in July. It is anticipated that the legal proposals will aim to expedite the transition towards a more electrified, more efficient and more resilient energy system that can lower prices for consumers. For the decarbonisation pathway to be efficient, our energy system must be smart. A smart and flexible energy system will reduce consumer energy bills by reducing the amount of generation and network assets that need to be built to meet peak demand. Since 2019, capital expenditure of over €1.8 billion has delivered more than 268,000 home energy upgrades, including over 36,300 fully-funded upgrades for households at risk of energy poverty under the warmer homes scheme to the end of May 2026. A rooftop revolution is under way across Ireland. More than 112,000 homes have received solar PV grants since the scheme began. The SEAI had received over 15,000 applications for solar PV in 2026, to the end of April. This is a 72% increase on the total applications in 2025. Some 99% of new housing is A-rated. I recognise the importance of helping households and businesses under pressure as a result of increasing energy prices. The cross-government national energy affordability task force, NEAT, will play a key role in this regard. NEAT is working intensively on an energy affordability action plan, which will be focused on short, medium and longer term measures to support households and businesses to meet their energy costs. The action plan will be built around four key pillars: addressing the price of energy; sustainable demand and enhancing flexibility; addressing energy poverty and customer protections; and energy affordability for businesses. To facilitate this, a number of NEAT subgroups has been established, bringing together officials from a wide range of Departments and agencies. A period of intensive engagement to refine options for consideration by the task force is under way, with subgroups meeting on an ongoing basis. This work is also being supported by structured engagement with relevant external stakeholders. The action plan will be submitted to the Government in the third quarter of this year.

Ireland has set an ambitious decarbonisation target of a 51% reduction in emissions by 2030, which is nearly full electrification of heat and transport. I heard from constituents who have recently undertaken works to electrify their homes and from others who are considering it. The price of electricity means the payback calculations, unfortunately, no longer stack up. We face a situation where, unfortunately, the technologies required to meet our reduction targets are being undermined by the cost of energy that powers them. We cannot afford to set targets and then allow market conditions to quietly hollow them out. What plans does the Minister of State have in place to ensure the public have confidence in making investments into these technologies for the future?

I again thank the Deputy for the points he raises. I fully understand the concerns. Householders need confidence when switching to electricity that it will save them money. We have seen with the number of applications for SEAI grants but also for solar PV grants that those investments are reaping rewards. Electrification, when combined with efficiency and renewables, will lower energy costs over time for households. That is very much what we are focused on. Heat pumps in well-insulated homes reduce household heating bills. Solar PV allows households to generate their own electricity. We have seen a huge uptake in EVs and that has significantly reduced fuel and maintenance costs. These are the real drivers of ensuring that we can reduce our exposure to volatile, fossil fuel prices, particularly gas. That is why the Minister, through the SEAI and others, is scaling up the supports. We are also scaling up our renewable electricity at pace, reducing dependency on fossil fuels, but also building a more stable, low-cost system. Through NEAT, we are also bringing forward additional measures that will continue to support households. The risk to households who do not move to electrification in that they could stay locked into expensive fossil fuels. We will look at how we can utilise best practice, be it through smart meters, looking at lower tariffs, better use, better efficiency and better supports. That is the way forward for many consumers and households.

The electrification of our economy is the right policy direction but it will only succeed if ordinary households are not priced out of it. Ireland already has some of the highest electricity prices in Europe. The scale of grid investment required over the coming decade is enormous and there is a real concern that the cost of that infrastructure will be loaded onto domestic electricity bills through network charges. If this continues, the people we are asking to switch to EVs and heat pumps are also the people being hit hardest by the cost of investing in the infrastructure needed to support our transition to full electrification. Will the Minister of State outline clearly how the Government will ensure that the burden of grid investment is distributed fairly and does not fall unequally on the domestic consumer who it is pushing to do the right thing?

I understand the points the Deputy raised. The challenge of high electricity prices is well-understood. That is actively shaping Government policy in terms of regulatory discussions and decisions, but also how we continue to prioritise investment through price review, PR, 6, through ESB Networks and also EirGrid. That is precisely also why we have commissioned the regulator of utilities to undertake an in-depth, fundamental and multi-annual review of the electricity network tariffs. That review is very important in ensuring the costs are shared fairly right across users on the system, that households are protected, that they are not paying the most but also that they are protected from disproportionate impact, and that the tariff system supports electrification rather than acting as a barrier. That work will certainly be aligned with future forthcoming EU proposals that will be brought forward. We want to continue to invest in our grid and bring more renewables on-stream, continue to support households and businesses through SEAI supports and ensure that businesses and households are protected into the future. We have already delivered in some of these areas. We reduced the VAT rate on electricity, in line with gas, to 9%. We have also increased the fuel allowance and its eligibility, bringing many recipients of the working family payment into direct energy supports. We will continue to shape budget 2027 around the energy affordability piece, working with other Departments, such as the Department of Social Protection, for those who are at risk of energy poverty.