Dáil Éireann Debate, Thursday - 11 June 2026
7. Deputy Seán Kyne asked the Minister for Climate, Energy and the Environment to provide an update on the work of the national energy affordability task force; when the action plan will be produced; the way in which timelines on implementation will be managed so as to assist households and business in advance of winter 2026; and if he will make a statement on the matter. [44562/26]
View answerI am seeking an update on the work of the national energy affordability task force; when the action plan will be produced; the implementation timelines; and what will be done to assist households and businesses in advance of the coming winter.
First, I congratulate Deputy Seán Kyne on his re-election to Dáil Éireann.
Hear, hear.
He is very welcome.
Addressing energy affordability is a key priority for this Government. That is why, in June of last year, the Department established the national energy affordability task force, 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 task force informed key aspects of budget 2026. That included 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 and there was an extension to 2030 of the reduced VAT rate of 9%, which is applied to gas and electricity. A €400 income tax disregard for households involved in microgeneration was also extended for a further three years.
A record €640 million is also being provided to support the Sustainable Energy Authority of Ireland's residential and community energy upgrade scheme 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. According to the SEAI, since 2019 over 17,000 homes have been upgraded in Galway alone under SEAI schemes, including over 1,400 fully funded upgrades for households at risk of energy poverty under the warmer homes scheme, and over 7,300 solar PV installations.
The NEAT continues to work intensively on an energy affordability action plan to be submitted to the Government in quarter 3 of this year. This action plan will focus on short-, medium- and long-term measures, such as addressing the price of energy, sustainable demand and enhancing flexibility, and addressing energy poverty, customer protections and energy affordability for businesses.
I acknowledge the work of the Government in assisting those in fuel poverty and under pressure, the extension of the fuel allowance season and the continuation of the reduction in VAT on electricity and gas. We saw during March and April significant increases in the price of home heating oil. Thankfully, that has now come back to a degree but it was certainly a shock to the budgets of many homeowners. While I acknowledge the medium and longer term role of retrofitting as well as the moneys being spent from the carbon tax on the fuel allowance and retrofitting and the investment by the Government and the work of the Department, how can we prepare for such a shock, if it were to happen again in the coming winter, in terms of home heating kerosene prices?
I thank the Deputy for his question. When we saw the huge volatility and the energy crisis that resulted from events in the Middle East, we introduced unprecedented supports. We expanded the fuel allowance for an additional four weeks, which provided some comfort for those who use home heating oil. Notwithstanding the pressures that energy costs are putting on many families and recognising the scale of the intervention that has already been delivered, we also recognise what is still required. That is why, through the national energy affordability task force, we are moving to the next phase, which is to move away from emergency supports to more long-term affordable solutions. The core driver is reducing our reliance on volatile fossil fuels, scaling up renewables and improving energy efficiency. We want to continue to protect those who are most vulnerable. As I said, a comprehensive plan, which will come to the Government in quarter 3 of this year, will include a number of measures for those who are in energy poverty and those who need them most.
I thank the Minister of State for his response. I agree that the action plan needs to be flexible in relation to such shocks. I know this is not just an issue for his Department, and requires a whole-of-government response. During the winter period, demand for and usage of home heating oil will increase in Galway and Mayo. We will have colder nights and people will stay in for longer. I certainly hope that there is, in the action plan and in the Department, work taking place to engage with the Minister for Finance and other Ministers to ensure there will be a response should there be another home heating oil price shock. I acknowledge the medium and longer term view in relation to retrofitting, insulation and alternative sources, but we also have to look at the here and now for those under pressure.
I take the points the Deputy has raised. We will feed in the challenges that many households that rely on kerosene face. The task force will engage with other Departments such as the Department of Social Protection on how the fuel allowance can better support those who require it. That is exactly how this should be structured. There should not be just one published document, but a phased approach in which we see immediate measures being delivered in budget 2027 as well as further targeted actions, which can be finalised in the winter ahead, and a clear delivery timeline for the action plan itself. I take the points the Deputy has raised with regard to his constituents, especially those in rural areas who rely on oil and kerosene. I am sure we will engage with the Minister, Deputy Calleary, and other Departments on that.
