I propose to take Questions Nos. 28, 35, 36, 48 and 49 together.
Addressing energy affordability is a priority for this Government. That is why in June of last year, my Department established the National Energy Affordability Taskforce (NEAT) 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 First Report of the Taskforce informed key aspects of Budget 2026 including:
• a 15% or €5 per week increase to the Fuel Allowance, providing an additional €140 to recipients during the annual fuel allowance season;
• eligibility for the Fuel Allowance was also expanded to include those in receipt of the Working Family Payment;
• an extension of the reduced VAT rate of 9% which is applied to gas and electricity to 2030. This provides clarity and certainty to energy consumers and reduces energy bills for households by up to €100 per year; and
• the €400 income tax disregard for households involved in microgeneration was extended for a further three years to end-2028
A record €640 million has also been provided to support the SEAI’s residential and community energy upgrade schemes this year. This includes €340 million for the Warmer Homes Scheme which provides fully funded upgrades for households in energy poverty. The allocation means that more funding than ever will be available to make homes warmer, healthier, more comfortable and less expensive to heat.
The SEAI supports for businesses include up to 100% funding for energy audits and up to 50% for other measures. Supports available include:
• Rapid Approval Grants;
• the Business Energy Upgrade Scheme (off the shelf upgrades such as air handling, pumps, and insulation);
• a Non-Domestic Microgeneration Grant; and
• the Excellence in Energy Efficiency Design (EXEED) Scheme
The NEAT continues to work intensively on an Energy Affordability Action Plan to be submitted to Government in Q3 of this year. This Action Plan will be focused on short, medium and longer-term measures to support households and businesses to meet their energy costs and will be built around 4 key pillars:
•addressing the price of energy;
•sustainable demand and enhancing flexibility;
•targeted supports to address energy poverty and customer protections; and
•targeted supports for energy affordability for businesses.
To facilitate this robust and coordinated cross-Government response, a number of NEAT subgroups have been established, bringing together officials from a wide range of Government Departments and Agencies. A period of intensive engagement to refine options for consideration by the Taskforce is currently underway, with subgroups meeting on an ongoing basis. This work is also being supported by structured engagement with relevant external stakeholders.
Electricity credits were always envisioned as a temporary, emergency measure. While necessary at the peak of the energy crisis, they are not fiscally sustainable nor do they reduce the drivers of cost in the energy sector.
There are no decisions made yet in respect of Budget 2027.
Households spending above 10% of total income on their energy needs (excluding energy for transport) are counted in the current measurement of energy poverty. In 2022, based on this measure, the ESRI estimated that the number of households at risk of energy poverty was 29%. It should be noted that targeted measures to support households at risk of energy poverty are paid to a significant share of households. For example, the Fuel Allowance has been expanded to benefit 470,000 households. As mentioned, Addressing Energy Poverty and Customer Protections is one of the pillars of the NEAT framework.