Dáil Éireann Debate, Tuesday - 16 December 2025
211. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the analysis which has been done regarding the combined impact of the RHO and PR6 from January 2025; the amount by which he expects average bills will rise; the measures he will take to mitigate the impact to households; and if he will make a statement on the matter. [72383/25]
View answerThe Programme for Government acknowledges the increased energy cost pressures on households and businesses, and commits to bringing forward additional measures to address these costs. My Department has established a cross-Government Energy Affordability Taskforce to identify, assess and implement measures that will enhance energy affordability for households and businesses, while delivering key renewables commitments and protecting security of supply and economic stability. The taskforce has recently published an interim report, which sets out measures for consideration as part of the Budget 2026 process, and in advance of publication of the Energy Affordability Action Plan in 2026.
Ireland is committed to reaching a legally binding target of climate neutrality by no later than 2050, and a cut of 51% in greenhouse gas emissions by 2030. As Ireland imports most of its fossil fuels, our heating sector is a significant contributor to Ireland’s high energy import dependency and carbon emissions, and introduction of the Renewable Heat Obligation (RHO) is a key objective for me, as Minister, to address these challenges.
Given the potential impact the RHO could have on end consumers, energy affordability and the impact on household energy bills were key considerations in developing the scheme. My Department has carried out extensive analysis and stakeholder engagement activities, including with energy suppliers, to ensure final decisions taken in relation to the scheme are evidence-based and supportive of its successful introduction. A number of scheme parameters have been designed to allow flexibility to obligated parties in meeting their obligations, which will in turn reduce the overall burden on the end consumer. Detail in relation to each phase of analysis, including the full assessment carried out on potential obligation rates, and resulting impact on end consumers is available at: www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/renewable-heat-obligation/
Responsibility for the regulation of the electricity market and implementation of the PR6 process and its outcomes is a matter for the Commission for Regulation of Utilities (CRU). The CRU is an independent regulator and, in relation to the outcome of the price review strategy and associated issues, the Deputy may wish to engage with them directly. However, the Deputy should note the significant equity investment that the Government is making in the System Operators. EirGrid is to receive an investment of €2 billion and ESB an investment of €1.5 billion. This will strengthen their balance sheets and allow them to finance their investments under PR6 at the lowest possible interest rates which will minimise the ultimate cost to consumers of these essential investments.
