Dáil Éireann Debate, Wednesday - 30 September 2026
6. Deputy Réada Cronin asked the Minister for Climate, Energy and the Environment whether the Department has estimated the price reductions on household bills through the expansion of district heating under the proposed Heat (Networks and Miscellaneous Provisions) Bill; and if he will make a statement on the matter. [69312/26]
Amharc ar fhreagraThe Department has not undertaken estimates of the potential price reductions that may arise from the expansion of district heating. However, the Heat (Networks and Miscellaneous Provisions) Bill is intended to provide the statutory underpinning for the development of a vibrant district heating sector and includes establishing a comprehensive regulatory regime that ensures consumer protection. Specifically, Head 7 of the Bill provides for a principles-based approach to customer tariffs that will be developed over time as the market grows and matures.
Under the provisions of the Bill, it is proposed that district heating operators will be required to submit their tariffs to the Commission for Regulation of Utilities (CRU). The CRU will monitor the heat network market and step in where the pricing principles established in Head 7 are not being adhered to by heat network operators.
For the purposes of monitoring and assessing compliance with the principles set out in Head 7, the CRU may carry out comparative or benchmarking assessments of charges, costs or performance across Heat Networks or classes of Heat Networks, taking account of scale, technology, location and customer characteristics. Heat network operators will be required, under the provisions of Head 7, to disclose to the CRU all data requested relating to charges, pricing and costs.
The provisions of Head 7 provide flexibility for additional or more detailed pricing regulation to be introduced at a later stage if this proves necessary in light of the future development of the sector.
Under the Heat Bill, the CRU will be charged with promoting cost-efficiency and competition through ensuring that the only principle for selecting one renewable energy source over another is that it is the most economically efficient renewable energy source in that specific network's context.
International experience demonstrates that district heating does not necessarily deliver significant reductions in heating costs immediately. However, as networks expand and integrate lower-cost renewable and waste heat sources, they can offer increasingly competitive pricing to consumers.
The Sustainable Energy Authority of Ireland's most recent Comprehensive Heating and Cooling Assessment found that district heating represents the most cost-effective way of providing at least 17% of Ireland's buildings' heat demand. This is expected to increase as the sector develops.
