Fuel allowance and home-heating costs
Eamon Gilmore criticises the Government for delaying a vouched fuel allowance as home-heating oil prices rise, proposing that costly energy-company rebranding funds instead help families facing disconnection and fuel poverty. The Taoiseach says the proposed scheme concerns solid fuels, defends regulation of the energy market, and points to an affordable-fuels strategy combining energy supports with home retrofitting.
We are coming to the time of year when the weather gets colder and families must spend more money heating their homes. The price of home heating oil is now 26% higher than it was this time last year. One of the factors which has contributed to the increase in the price of home heating oil is the carbon levy introduced by the Government in the last budget. When the Minister for Finance introduced that measure he promised that a vouched fuel allowance scheme would be developed to offset the increases for low-income families dependent on such fuel. That vouched fuel allowance scheme has not yet been produced.
The programme for Government committed to the publication of a fuel poverty strategy by the end of 2009 in keeping with the introduction of the carbon levy. The problem of fuel poverty is very real and the energy regulator has told us electricity disconnections are now running at a rate of between 2,000 and 2,500 households per month. Bord Gáis has told us that so far this year, 4,000 homes have been disconnected.
The Labour Party has a motion before the House proposed by Deputy McManus last night which addresses the issue and calls on the Government to introduce the vouched fuel allowance scheme promised in the budget to offset the carbon levy measures for low-income families. It also calls for the publication of the fuel poverty strategy. We were surprised that the Government amendment made no mention of either measure when it was circulated last night and the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, in responding to the Labour Party motion, made no commitment to either of them. When will the vouched fuel allowance scheme, promised in last year's budget, be introduced? When will the fuel poverty strategy, promised for the end of 2009, be published?
Comment on this
The vouched fuel allowance scheme related to the carbon levy on solid fuels. This is subject to a commandment order. Subsequently, when we came to make the decision, taking into account that aspect of the situation, it was to be made subject to a commencement order. That did not happen, however. The vouched scheme will only come into place in the solid fuels area once the commencement order for the applications of a carbon levy to those fuels applies.
Comment on this
Home heating oil prices are still lower than they were during mid-2008 which was the last time there was an increase in the fuel allowance rate. Home heating oil significantly reduced in price after that last increase in fuel allowance. The fuel allowance rate was not reduced at that time. The fuel allowance rate remained static when home heating products reduced in price. That granted an increase in the rate. To use lower prices during 2009 as a justification for an increase in fuel allowance at that stage would not be possible.
There is also the exceptional needs payment for anyone who may have difficulty in that respect.
Comment on this
That payment is not allowed for this.
Comment on this
That answer from the Taoiseach is a dodge. It shows no appreciation of the kind of difficulties people have in meeting their home-heating costs. This idea that the vouched fuel allowance was attached only to the introduction of the carbon levy on solid fuels is a completely new excuse by the Government for not proceeding with its introduction.
I will offer the Taoiseach a way that it can be introduced. The energy providers, the ESB and Bord Gáis, are required to re-brand themselves.
Comment on this
Deputy Gilmore knows about re-branding.
Comment on this
The cost of this re-branding for Bord Gáis alone will be €40 million. I have never heard anything as daft at a time of economic crisis.
Comment on this
Deputy Gilmore would know all about re-branding.
Comment on this
Not only am I offering a question, I am offering a solution to the Taoiseach as to how this can be addressed.
Comment on this
The Government will spend €40 million on the ESB and Bord Gáis each for putting up new nameplates, letterheads and for new advertising at a time when the country is short of money. Those moneys would be better spent providing some assistance to those families who cannot meet their fuel bills. Those families are being switched off by the two suppliers in question which then charge them €200 to switch off and another €200 to be reconnected.
There is a solution. The Government made a promise in last year's budget for a vouched fuel allowance. It has not yet been introduced. The Government made a commitment there would also be a fuel poverty strategy to deal with the needs of families on low incomes who cannot afford to heat their homes in winter. The Taoiseach should introduce these. Instead of Bord Gáis and the ESB spending €40 million each on putting up new nameplates on their offices, it would be better spent providing for those who are having difficulties meeting their fuel costs.
Comment on this
Whatever arrangements have been made by the ESB and Bord Gáis by the Commission for Energy Regulation can be taken up with them.
Comment on this
The Taoiseach is abdicating his responsibility again.
Comment on this
A decision by the Commission for Energy Regulation on the liberalisation of the energy market——
Comment on this
The Taoiseach takes no responsibility for any decisions made by the regulator.
Comment on this
The Government sets policy which the commission implements.
Comment on this
Precisely to implement the Government's policy. This is not the IMF dictating policy.
Comment on this
Deputy Quinn's party voted to accept this policy.
Comment on this
It was voted for by every Member in the House as the best means of providing for competition in the market.
Comment on this
Deputy Burton listens in silence when the question is asked but cannot be silent when the answer is given.
Comment on this
There are days when it is hard to keep control.
Comment on this
Maybe the Taoiseach should talk to Deputy Seán Power about that?
Comment on this
He might have to change party again.
Comment on this
The issue raised by Deputy Gilmore is one for the semi-State companies concerned to deal with the Commission for Energy Regulation.
Comment on this
The affordable fuels strategy is at an advanced stage of preparation in the Department of Communications, Energy and Natural Resources. It will provide a way to deal with the issue more widely and generally. It will not be like in the past when there were income supports to free fuel schemes. It will also involve retrofitting households to help people have more energy efficient homes.
Significant moneys are going into the retrofit programme with thousands of homes becoming more energy efficient. This runs counter to having fuel schemes that do not deal with energy inefficiency. The whole question is the switch to more energy efficient homes, the best way to deal with fuel poverty. This programme will be accelerated over coming years.
Comment on this
There have been increases in the fuel allowance in the past. I made the point earlier that since the last increase, home heating oil prices have reduced. The overall strategy to be integrated across the board is at an advanced stage at the moment.
Comment on this
The Green Party's solution is for people to buy a bike to keep warm.
Comment on this
Houses should be all insulated to save heat.