2026-02-24

142. Deputy Carol Nolan asked the Minister for Climate, Energy and the Environment to provide an update on the work of the national energy affordability task force; and if he will make a statement on the matter. [14498/26]

Will the Minister provide an update on the work of the national energy affordability task force? The Irish SME Association, ISME, has published the results of its latest members' survey, identifying the priority issues facing SMEs this year and showing that business costs overwhelmingly dominate their concerns. Some 78% of respondents said that these concerns include energy and other overheads, all of which ISME rightly notes have been subject to sustained and significant inflation in recent years. Alarmingly, ISME also notes that despite easing inflation in some areas of the wider economy, these structural business costs have not moderated. What is the Government doing to address this issue for consumers and small businesses in Offaly?

I thank the Deputy very much for raising this very important issue regarding energy affordability. The latter is a priority for the Government. I answered a similar question from Deputy Daly earlier. In June of last year, we established the national energy affordability task force. Its job is to identify, assess and implement measures in the short term that will enhance energy affordability for households and businesses, while delivering key renewable commitments, protecting security of supply and ensuring economic stability. The task force membership includes representatives from various Departments and key energy stakeholders. Its first report set out measures for consideration in the context of budget 2026. It recommendations brought about a 15% or €5 per week increase in the fuel allowance, which will provide an additional €140 to over 450,000 recipients during the annual fuel allowance season. Eligibility for that has also been extended to those in receipt of the working family payment, which is about another 50,000 households. In addition, the extension of the reduced VAT rate of 9%, which applies to gas and electricity, has been extended to 2030. This provides real clarity to energy consumers and reduces bills for households by about €100 per year. This year, we will also be investing in the region of €640 million to support residential and community upgrade schemes. This includes €340 million for the warmer homes scheme, which provides 100% grants, delivering permanent savings for households. The business support grants also deliver permanent savings. On a per capita basis, it is the most significant retrofitting investment that any European state is making. The focus of the task force has turned to the preparation of an energy affordability action plan. This will be completed in the third quarter of this year. That plan will include a review of the cost drivers within the energy sector and consideration of how the EU action plan for affordable energy and associated guidance can be implemented in an Irish context. The next meeting of that task force will take place in March. It is important to note that ongoing bilateral engagement and sectoral work also happens between meetings. There is more work to be done in that space and we are determined to do it.

I thank the Minister for his response. The fact is that, while some supports were given to small businesses and consumers in general, to date, very little has been achieved in tackling the source of the great energy price rip-off that continues day in and day out for households and small businesses, many of which in my constituency have closed due to energy costs. The capacity to absorb these energy costs is just not there, as ISME has identified. The costs impact everyone from the owners of pubs and retail stores to the hairdressers and the farmers. This is why I can only agree with ISME on its statement that "the survey findings underline the need for Government to focus on structural cost competitiveness in 2026, rather than layering additional obligations onto small businesses already operating on tight margins." The profiteering that has gone on is simply scandalous. Perhaps we need to adopt the equivalent of the unfair trading practices directive and the approach of the Agri-Food Regulator so that we can see exactly how these obscene energy prices are calculated and why Irish consumers and businesses are so slow to see any meaningful reduction in their energy bills when wholesale gas prices reduce.

Energy costs are a real issue for households and small businesses in particular. I agree with the Deputy completely on that. We must do everything within our power to help to reduce those costs. With regard to real structural reform, she will know that the previous Government brought in energy tax credits. The State invested about €3.3 billion in that. That could not be sustained into the future. Instead of that, €3.5 billion is being invested in equity funding to EirGrid and ESB Networks so that they will be able to fund measures under PR6. That will be a step change. It is an investment in grid capacity and grid resilience and it will also drive affordability. I agree that we have to look at structural cost competitiveness. The national energy affordability task force, NEAT, I have established will be looking at the very make-up of our electricity bills. A lot of it does sit within the EU framework, however. Some of it is within our control and we will look at that. That report will be published in the third quarter of this year. I will look to bring further measures forward this year.

The Minister mentioned tax credits. While the energy tax credits were welcome, they let the energy companies off the hook. I called for the energy companies to be brought in here a number of times. The profiteering was scandalous. We were seeing businesses really grappling with costs. A long-term solution is needed. I hope this task force will produce proper practical solutions to get to grips with this issue once and for all and to send a message to the energy companies that their ongoing profiteering is not acceptable. Government needs to send that message. A report on wind energy was published this week. It stated that energy generation costs for the State are over €1.5 billion. Again, where are households and businesses seeing the benefits of this trickling down? Small businesses are trying to operate on thin margins while being bound within an energy-cost straitjacket that is making it harder and harder to sustain financial viability. I am concerned about rural jobs in my own constituency of Offaly. We must do everything we can to protect jobs.

I was in Offaly last week, where Bord na Móna is doing work and where Statkraft is developing new battery storage facilities, which are critical. We now have nearly 1.5 GW of battery storage across the country. This allows us to plan and to distribute our energy, particularly renewable energy, at appropriate times to deal with peaks within the system. That is being expanded further. Offaly has actually been a leader in the delivery of renewable energy. At the same time, Bord na Móna is doing really good work with regard to habitat restoration. It is about increasing the amount of energy we own. It is also about clean, green and cheaper energy. We are overdependent on imported fossil fuels. Only about 25% of our gas is sourced domestically. The rest is imported. We are always at risk from the vagaries of the energy markets. The reason for the gap between the wholesale price and the retail price and the delay in reductions trickling down to the customer is that, because Ireland is importing so much, we are buying ahead or hedging. Those decreases therefore take longer to reach households. That is why we need to expand our renewable capacity. We are doing that year on year. I predict that this year will be a record year for the delivery of renewables with regard to both new projects and consents for new projects.