I propose to take Questions Nos. 161, 162 and 163 together.
Group heating schemes are apartment blocks or housing developments that are supplied with heat rather than fuel and, in such cases, it is the heat supplier that is the purchaser of the fuel used. Where gas is being used, the provider may not fall within a domestic supply category, and will be supplied under commercial terms and conditions.? I understand that such heating systems make up a very small proportion of household heating in Ireland. Previous references to a tariff in this context related to the price at which gas is purchased.
Group heating providers, as the holder of the contract with the gas supplier, may query the basis of their classification as a commercial customer by the supplier and ensure that they are being supplied on the most appropriate rate and terms.
While commercial prices have been lower than domestic gas prices, recent increases in energy prices have led to a sharp increase in commercial gas prices in particular. This has lead to increases in the cost of providing heat by energy service providers. While I understand that group heating schemes have, historically, benefitted from lower prices, gas prices are affected by international developments, and recent events have resulted in significant increases to gas prices. The costing and billing of heat is a matter for the energy service provider and its customers, and the State has no role in the collection of heating bills, or in the purchase of natural gas by commercial customers.
My Department is currently liaising with the Commission for Regulation of Utilities to ensure the development of an appropriate regulatory framework for district heating, which the Government plans to facilitate at scale in Ireland, to include regulation of group heating schemes, and this will take time and careful consideration. The statutory functions of the CRU in relation to regulation of district heating are contained in SI 350 of 2022 and SI 630 of 2022.
There are Government supports and protections targeted at the end user customers. Throughout 2022, the Government introduced a €2.4 billion package of supports to support households and businesses, and as part of Budget 2023, introduced a package of measures worth €2.5 billion. This included the €1.211 billion Electricity Cost Emergency Benefit Scheme, through which €600 (inclusive of VAT) is being credited to each domestic electricity account in three payments. The third €200 electricity credit is due to be applied in March/April. This was applied through the electricity system to ensure maximum reach to customers.
Furthermore, any individual that is in need of additional support to facilitate their continued energy supply should apply for an Additional Needs Payment provided by the Department of Social Protection. I am assured that every effort is being made to ensure that any individual that qualifies, receives an Additional Needs Payment on the same day, or as soon as possible where it relates to electricity and heating expenses.
On 13 December, Government approved a new Energy Poverty Action Plan, which provides for the establishment of a €10 million fund to further support people in, or at risk of, energy poverty this winter and into 2023. The fund will ensure that people in most need can access financial supports quickly and directly provide a further safeguard in addition to the supports from supplier hardship funds and the Additional Needs Payment operated by the Department of Social Protection. The Money Advice and Budgeting Service (MABS) is also available to provide budgeting advice and advocacy support.