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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Energy prices and disconnections

Summary

Mary Lou McDonald raised soaring energy bills and sought a firm commitment that prepay and other customers would not be disconnected. The Taoiseach argued the Government was acting on an unprecedented crisis, but the exchange became increasingly heated over whether he had answered the question and over his remarks to the Deputy.

Speaking on radio last Sunday, the Taoiseach gave an assurance that nobody would be disconnected from electricity supply this winter. He said:

In an energy crisis of this kind we cannot have disconnections. We are very clear about that.

This is very welcome news, as people are now under severe pressure. The energy credits announced in the budget are already being gobbled up. From this week, Electric Ireland customers face a price hike of 38% for electricity, while Bord Gáis customers have been hit with a massive increase of 45% and other energy companies will also hike their prices this month. The Government's refusal to cap electricity bills at pre-crisis levels has left people wide open to further hikes. In reality, and despite the Taoiseach's assurance at the weekend, households struggling to pay their bills remain in danger of disconnection. This is a very real and present fear. We know that 712 households were disconnected in the first half of this year and that was before the impact of the huge increases in bills this winter.

Workers and families need more than words. They need a real plan from the Government that gives them the certainty that they will not be disconnected. The Government’s intention is to introduce a ban on disconnections for all customers from 1 December until the end of February. That is not good enough. It leaves people waiting far too long for protection and the time span is too short. We are now starting the run-up to Christmas, which is a most expensive time of the year. People are coming under huge financial strain today and are struggling to pay their bills today. The Government needs to start the ban on disconnections now. It should kick in immediately and should run until at least the end of March.

The Taoiseach also said that the Government would protect pay-as-you-go meter users from disconnection. However, other than directing people to their local social welfare office, he does not have a plan to back up that commitment, or does he? Once a person’s €10 arrears allowance runs out, the pay-as-you-go meter gets disconnected. Many households on prepaid meters are already rationing their electricity for fear of being cut off and that is a horrible situation for any family. Ní cheart go mbeadh aon teaghlach ag tabhairt aghaidh ar dícheangal fuinnimh an geimhreadh seo. Caithfidh an Rialtas cosc ar dícheangail a thabhairt isteach anois go dtí deireadh mhí an Mhárta agus caithfidh an Rialtas plean a chur i bhfeidhm a chosnóidh custaiméirí ó a bheith dícheangailte.

The Taoiseach needs to back up his promise that nobody will be disconnected with real action. Will the Government start the ban on disconnections for all customers now and extend it until the end of March? Will it take measures to ensure that pay-as-you-go electricity customers will not be disconnected this winter? Can the Taoiseach outline how this will work and, most important, how quickly it might be implemented?

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Géarchéim uafásach atá againn maidir le praghsanna. Níl aon amhras ach go bhfuil an Rialtas ag déanamh a dhíchill cabhair agus tacaíocht a thabhairt do gach éinne: teaghlaigh éagsúla ar fud na tíre; gnóthaí; agus eagrais éagsúla atá ag obair ar son mhuintir na tíre san áireamh. Táimid ag tabhairt an-chuid tacaíochta do dhaoine agus bhí sé sin soiléir sa cháinaisnéis a bhí againn an tseachtain seo caite.

We are facing the worst global energy crisis since the 1970s, caused by Russia's immoral and unprovoked war on the people of Ukraine. We import approximately three quarters of the natural gas we use from the United Kingdom. Approximately half of our electricity is generated using gas and, therefore, spiralling gas prices feed through into higher electricity bills. The price today for UK gas on wholesale markets is 263p per therm. This day two years ago the price was 38p per therm and future markets are pointing to even higher prices in the coming months, with a therm of gas to be delivered in January costing 450p and March deliveries priced at 440p per therm. That is the background. We are in a wartime situation, which has brought about these extraordinary increases.

I agree with the Deputy that the response to a crisis of this scale needs more than words and that is why we announced unprecedented measures in the budget to support and help people to get through this winter, including electricity credits for all households totalling €600; a lump sum payment of €400 for fuel allowance recipients; a double-week payment to all qualifying social protection recipients in October, and the normal Christmas bonus will also be paid; an extra €500 for working family payment and career support grant recipients in November; double child benefit of €140 per child in November; and a once-off payment before Christmas of €200 to recipients of the living alone allowance and €500 to those on disability allowance, invalidity pension and the blind pension. Significant additional funds will be provided to schools, which will see huge increases in their energy costs, and parents will be spared €650 through the provision of free school transport. The fees for third level institutions have been reduced by €1,000. Not-for-profit and voluntary organisations, local authorities, nursing homes and hospices will all get additional supports, as will third level institutions. We have also extended the reduction in excise duties and VAT on electricity and gas until the end of February. To protect jobs, we have introduced the temporary business energy support scheme, at a cost of €1.2 billion. We have also brought in tax cuts amounting to approximately €1.1 billion for middle-income earners and the social protection package of measures is worth more than €1 billion. These are not just words; they are actions that the Government has taken in respect of the cost-of-living package and the budget itself.

We did not agree with putting in place a cap with no detailed costing attached to it. We feel the better approach is to allocate funding to households, as well as trying to get downward pressure on energy consumption. One of the difficulties with the kind of cap the Deputy has proposed is that there is no acknowledgement of the crisis we are in, or the need to have greater energy efficiencies across the board in the workplace and reduce costs and consumption. Fundamentally, we are here to help. That is why we have not gone with the cap model, as proposed by the Deputy. We have seen elsewhere there are different proposals. Where there is a proposal that is not costed and could involve a blank cheque for energy companies for two years or longer, that is something we have to be extremely careful about.

In respect of pay-as-you-go meters, as part of its statutory role, the CRU has very clear functions regarding consumer protection, including around disconnections and protections for those using prepaid meters. As part of responses 6 and 7 under the national energy security framework, the CRU announced enhanced consumer protection measures for implementation this winter, in particular for customers using prepaid meters. It has strengthened the protection. We are determined to give support to those people and others.

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Catherine Connolly An Leas-Cheann Comhairle Independent

I think the Taoiseach has benefited from a malfunctioning clock.

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Blessed be the malfunctioning clock.

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These times are very reminiscent of a decade ago when the troika was in town and people used to ration everything, including food. I remember families having cornflake days; that was dinner for them. I am hearing from families that they are rationing their electricity. The reality for many, and fear for many more, is that they will be left in a position whereby they have to take a decision to turn on a light or put breakfast in front of their children.

The Taoiseach gave a commitment at the weekend that disconnections would not happen. I want him to set out in detail what that means for pay-as-you-go meter users. Some 200,000 households across the State have such meters. The Taoiseach has made a commitment. When will it kick in? How will it work? I put it to the Taoiseach that the ban on disconnections needs to start now and run until the end of March. Rather than rehashing all of the global factors, could the Taoiseach kindly answer my questions and reassure families who are afraid and struggling?

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Catherine Connolly An Leas-Cheann Comhairle Independent

The clock is functioning.

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I am not rehashing any global generalities. Rather, I am bringing the hard reality of a wartime situation in Europe to the floor of the House. I will never make an apology for that. The Deputy is trying to create the delusion or illusion that everything is normal and we can go back to pre-crisis levels. That is the Deputy's line. She believes we can all make it go away magically.

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Things are clearly not normal.

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The Deputy cannot make it go away magically. She simply cannot do that and it is dishonest to people-----

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Do not call me dishonest. Answer the question and do your job.

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It is dishonest, in the middle of a terrible crisis, to pretend there is no war or the war does not have an impact. We are doing people a disservice when we do that. We need to be honest with people. We know the war is having a terrible impact.

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Answer the question.

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The total number of prepay electricity meters is around 340,000. Some 90,000 of those meters have been provided to people who have experienced electricity debt in order to help them budget these costs. Gas Networks Ireland has confirmed that there are about 117,000 pay-as-you-go meters. Through the social protection systems and the work of the CRU, which is a statutory body, we will protect people. Our entire purpose is to protect people. We have no interest in not protecting people.

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Make a commitment. You are an absolute disgrace. Insulting me is not an answer.

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I did not.

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You consistently do it. You come in here and insult me and call me untruthful, and you do not answer your questions. Do your job.

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Catherine Connolly An Leas-Cheann Comhairle Independent

Deputy McDonald, if you consistently ignore the Chair, I will abandon the session. I ask for co-operation so that I do not need to keep interrupting. We are eating into the time.

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