Energy Prices

10. Deputy Matt Carthy asked the Minister for Climate, Energy and the Environment to assist with ever rising electricity costs. [78317/26]

18. Deputy Keira Keogh asked the Minister for Climate, Energy and the Environment the measures being taken to reduce energy costs for households across County Mayo and other rural counties; and if he will make a statement on the matter. [78242/26]

21. Deputy Keira Keogh asked the Minister for Climate, Energy and the Environment the steps being taken to tackle energy poverty in rural communities, particularly among older people and low-income households in County Mayo; and if he will make a full statement on the matter. [78243/26]

What are the measures being taken to reduce energy costs for households across County Mayo and other rural counties and what are the steps being taken to tackle energy poverty in rural communities, particularly among older people and low-income households?

I propose to take Questions Nos.10, 18, and 21 together. I thank the Deputy for her question. The conflicts in Ukraine and the Middle East have caused significant disruption to international energy markets. This has resulted in high energy prices for households and businesses throughout Europe, including in Ireland. In response, the Government has taken a range of measures to help support consumers across the country with energy costs. The Government has established the national energy affordability task force to examine energy affordability challenges and identify practical measures to support households and businesses. The work of the task force helped to inform key aspects of budget 2027 with a particular focus on the most vulnerable to high-energy costs. A central element of the Government's approach is reducing energy bills through improved energy efficiency and increased deployment of solar PV. Budget 2027 provided a record €654 million for residential and community project upgrades. This investment will support more households in improving their energy performance and lowering energy consumption, reducing bills and improving comfort while decreasing reliance on imported fossil fuels. The Government continues to support fully-funded energy upgrades for eligible low-income households. Just before the budget, the Minister, Deputy O’Brien, announced a package of measures developed through the work of the national energy affordability task force which will ensure the energy efficiency and renewable supports available through the Sustainable Energy Authority of Ireland, SEAI. For households, this package includes a new boiler scrappage scheme and for businesses it includes a temporary increase in the grant support for solar PV installation under the non-domestic microgen grant as well as increased grants for heat pumps and solar thermal installation under the business energy upgrades scheme. These measures will help to build on the progress in retrofitting seen in recent years and support further permanent reductions in household bills. Since 2019, SEAI schemes have provided more than €2 billion and delivered more than 300,000 home-energy upgrades, including more than 40,800 fully-funded upgrades at risk of energy poverty. Homeowners can save up to €1,120 per year when they carry out whole-home upgrades. The income tax disregard on microgeneration income received by households who sell electricity back to the grid was also increased by €200 from €400 to €600. Social protection supports are another important component of the Government’s response and budget 2027 increased the weekly rate of the fuel allowance by €5 to €43 a week from January 2027. This equates to an additional €140 in the fuel season and brings the total support provided in a fuel-allowance season to €2,204. Over the past 12 months, the weekly rate of fuel allowance payable has increased by 30%. Eligibility for the scheme was also extended and from January 2027, the weekly allowance means of a single person aged 66 years or over will be increased. This will allow more single people aged 66 years or over to qualify for the fuel allowance payment. Regarding single adult households and particularly those vulnerable to energy poverty, this measure is expected to build up the 10,000 single pension households. Currently, 463,910 households are eligible for the fuel allowance scheme, representing approximately 26% of all households nationwide. In addition, increases were provided to the living alone allowance and children support scheme, while a new cost-of-disability payment was introduced. These targeted measures will particularly benefit groups at greater risk of energy poverty, including older people, people with disabilities and all low-income households. The Government has also introduced wider measures to help with living costs, including extending the temporary excise reduction into 2027 and reducing carbon tax on home-heating oil and natural gas. This package of temporary fuel supports have cost more than €1.4 billion to date. In addition, the enhanced rebate scheme will continue until the end of December. That will help to alleviate cost pressures for transport operators and businesses. These decisions will continue to lower inflation, reduce the cost of doing business and support households with their energy bills. A range of protections are in place for consumers experiencing difficulty paying their energy bills. Consumers are encouraged to continue to engage with their suppliers at the earliest opportunity as suppliers offering hardship support and payment arrangements will not disconnect consumers while they are actively engaging with them. The national energy task force is also finalising the energy affordability action plan, which will be submitted to the Government in the coming weeks. This plan will set out a co-ordinated programme of short-, medium- and long-term measures to improve energy affordability, reduce exposure to volatile fossil fuel prices and support households and businesses in managing their energy costs.

I thank the Minister of State for that comprehensive answer. I know he is as concerned as I am about our constituents in Mayo who are struggling. I welcome the substantial investment in retrofitting, the new grants announced in September and the additional supports through the fuel allowance. However, yesterday's CSO figures show that energy prices have risen by 4.5% in the past month and by 18.3% since last October. In Mayo, especially in rural areas, the housing stock is older. There is also a dispersed population. Those people depend on private transport, notwithstanding the outstanding Local Link service. We also have TFI Anseo in Achill, which is amazing. For families in Mayo, these are not discretionary expenses. They need to heat their homes and they need their cars to get to work, bring children to school and access essential services. Will the Minister of State outline what more we can do? The grants are obviously welcome but upfront costs are prohibitive and the over 22-month wait from application to completed works is a disadvantage.

I thank the Deputy for reporting the concerns raised by many of her constituents to whom I have also listened intensively. Through the measures in budget 2027, we have delivered a package of measures to help households and businesses with the cost of energy, with a particular focus for those who are at risk of energy property, the most vulnerable and those who are exposed to volatile prices, especially those who are reliant on imported fossil fuels. As I said earlier, we allocated a record €654 million to the residential and community energy upgrade scheme. That has been a considerable success. It has provided fully funded energy upgrades under the warmer homes scheme. I know that many who have got the work done and have waited patiently as part of the scheme have seen significant benefits in reductions to their household bills while also improving their comfort and well-being. We want that to continue and that is why the Minister, Deputy O'Brien, brought forward a number of additional measures, such as the home boiler scrappage scheme and the grants for battery storage for solar energy. We will continue to work with the SEAI to try to improve the times for delivery and to try to get more contractors into the one-stop shop. I know it is a concern that the Deputy and I have heard. We will continue to work on it. We have also expanded the fuel allowance, which is critical. Many people rely on additional support during the winter period. That is a substantial support to the tune of over €1,200. That has been increased again by the Government this year, which is welcome. One in four households receives the fuel allowance. It is a targeted measure to support those people on an ongoing basis. In budget 2026, we committed to reducing the VAT rate on gas and electricity to 9%. We have extended that reduction to December 2030. There are challenges. Ireland is a price-taker on the international energy market. It is a difficult situation. We monitor it intensively. The Minister, Deputy O'Brien, will bring forward the action plan from the national energy affordability task force in the coming weeks. He hopes to publish it before the end of the year. Many of those measures formed part of the budget considerations and additional measures will be included.

I welcome the incoming publication of the recommendations of the national energy affordability task force. I am wondering about the phrase " in the coming weeks". A reply to a parliamentary question in September stated that the recommendations would be published in a couple of weeks. It is only five weeks later but we are hearing that it will be another couple of weeks. I would like a firm commitment that the action plan will be published by the end of the year. I, too, have seen the benefits of the warmer homes scheme, as have many of my constituents, especially when they get new windows or doors, or replace their boilers with pumps. Do we need a priority system? Perhaps older adults or younger families in isolated areas, or people living on their own, should get an expedited process. If somebody who in his or her 90th year is waiting for 22 months, it might be too long. I welcome the increase to the fuel allowance. A €5 increase is substantial but the many people who are just over the threshold for those targeted supports are still struggling.

I again thank the Deputy for raising this important question. We need to continue to work with SEAI to enhance the programme and the delivery timelines. It is one of the biggest issues that is raised by many Deputies. The Minister, Deputy O'Brien, has convened a working group to see what can be done in that regard. I will come back to the Deputy on the matters she has raised. As a Government, we look forward to bringing forward the measures in the national energy affordability task force. The Minister mentioned earlier to Opposition Deputies what will be contained in those recommendations and how we can continue to enhance energy affordability for households and businesses. That task force is working intensively on the action plan. As I said earlier, it will be delivered by the end of the year. The focus will be on price, energy poverty, customer protections, energy affordability for businesses, sustainable demand and flexibility. As the Minister said earlier, plug-in solar PV is another opportunity to support households. The expectation is that we would continue the regulatory review and look at further implementation of it in early 2027. That will be another opportunity for households to use a renewable source for electricity generation. That is where we should be going in using innovative technology to broaden households' ability to drive down energy costs, along with the SEAI home upgrades.