Written answer
Energy Prices
98. Deputy Ruairí Ó Murchú asked the Minister for Climate, Energy and the Environment for an update on plans to address the high costs of energy in the State; and if he will make a statement on the matter. [59692/26]
Comment on this
Addressing energy affordability is a priority for this Government. That is why in June of last year, my Department established the National Energy Affordability Taskforce, the NEAT, to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewables commitments, and protecting security of supply and economic stability.
The First Report of the Taskforce informed key aspects of Budget 2026 including:
• a 15% or €5 per week increase to the Fuel Allowance, providing an additional €140 to recipients during the annual fuel allowance season;
• eligibility for the Fuel Allowance was also expanded to include those in receipt of the Working Family Payment;
• an extension of the reduced VAT rate of 9% which is applied to gas and electricity to 2030. This provides clarity and certainty to energy consumers and reduces energy bills for households by up to €100 per year; and
• the €400 income tax disregard for households involved in microgeneration was extended for a further three years to end-2028.
The NEAT continues to work intensively on an Energy Affordability Action Plan to be submitted to Government in Q3 of this year. Publication of the Action Plan will follow approval by Government. This Action Plan will be focused on short, medium and longer term measures to support households and businesses in meeting their energy costs and will be built around 4 key pillars:
• addressing the price of energy;
• sustainable demand and enhancing flexibility;
• addressing energy poverty and customer protections; and
• energy affordability for businesses.
To facilitate this robust and coordinated cross-Government response, a number of NEAT subgroups have been established, bringing together officials from a wide range of Government Departments and Agencies. A period of intensive engagement to refine options for consideration by the Taskforce is currently underway, with subgroups meeting on an ongoing basis. This will include a determination of timelines for the actions included in the Plan.
This work is also being supported by structured engagement with relevant external stakeholders. This included a targeted stakeholder consultation session on tackling energy poverty. Consultation sessions with business groups, and with the Electricity Association of Ireland and retail electricity suppliers have also taken place in recent weeks.