30. Deputy Patrick Costello asked the Minister for the Environment, Climate and Communications the reason residential apartments (details supplied) are being charged a commercial rate for gas heating supplied by a district heating systems; if there is a legislative basis for this practise; if the Commission for Regulation of Utilities will investigate this issue; and if he will make a statement on the matter. [38632/24]

32. Deputy Patrick Costello asked the Minister for the Environment, Climate and Communications if the heat and built environment taskforce is investigating the reason residential apartment blocks availing of a gas-based district heating system are being charged commercial supply rates rather than residential supply rates; if not, whether his Department is taking any measures in relation to this issue; and if he will make a statement on the matter. [38634/24]

I propose to take Questions Nos. 30 and 32 together.

Communal heating schemes are generally localised, involving apartment complexes or residential housing estates. In communal heating systems, end users are supplied with heat, rather than fuel. The heat supplier is responsible for purchasing the fuel. Due to the scale of fuel purchase, these entities are charged a commercial rate for gas. Therefore, end users are charged a rate based on the commercial rate being charged to the heat supplier. Historically the commercial rate charged for gas has been lower than the residential rate.

Gas retail markets in Ireland are commercial, liberalised, and competitive, and operate within national and European regulatory regimes. Responsibility for the regulation of the gas market is solely a matter for the independent regulator, the Commission for Regulation of Utilities (CRU), and the CRU ceased setting gas prices in 2014. Price-setting is a commercial and operational matter for energy suppliers, with no regulatory approval involved.

The District Heating Steering Group (DHSG) Report, which was approved by Government in July 2023 contains a range of recommendations setting the future policy direction for development of district heating. As part of its work, the DHSG asked the SEAI to carry out a research project to assess how a typical communal heating system operates in Ireland, the options to retrofit low carbon heat sources including indicative costs, and to make recommendations for both existing and future heat networks in Ireland. The published report contains a number of recommendations for a specific communal heating system for the short to long term, and also contains recommendations for group/communal heat networks generally and for policymakers.

It is important to note, however, that communal heating systems are generally privately owned and managed, and implementation of any suitable recommendations would be a matter for the relevant parties to decide upon.

My Department is currently drafting the Heads of a Heat Bill to establish a regulatory model for district heating, including communal heating systems, to ensure consumer protections and the delivery of a vibrant district heating industry.