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Dáil

Written answer

Energy Prices

Summary

The National Energy Affordability Taskforce is finalising an Energy Affordability Action Plan covering energy prices, flexibility, energy poverty, customer protections and business costs. It will be submitted to Government shortly, inform Budget 2027 measures and published after approval; previous recommendations have already shaped fuel allowance, VAT, microgeneration and retrofit supports.

119. Deputy John Paul O'Shea asked the Minister for Climate, Energy and the Environment for an update on the preparation of the Energy Affordability Action Plan. [65227/26]

Comment on this

120. Deputy John Paul O'Shea asked the Minister for Climate, Energy and the Environment the recommendations that have been made from the National Energy Affordable Taskforce to date; and the progress of their implementation [65226/26]

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131. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment if he will report on the work of the NEAT; if he is satisfied it is sufficient to tackle the high cost of energy; and if he will make a statement on the matter. [65740/26]

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134. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the measures in Budget 2027 to reduce the cost of energy; when supports will be provided to ease the burden now; when energy market reforms will be delivered; and if he will make statement on the matter. [65755/26]

Comment on this

135. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment to provide an update on the work of the NEAT; when their report will be published; and if he will make a statement on the matter. [65754/26]

Comment on this
Darragh O'Brien Minister for Climate, Energy and the Environment Fianna Fáil

I propose to take Questions Nos. 119, 120, 131, 134 and 135 together.

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.

Significant progress has also been made on other areas highlighted in the NEAT interim report.

In Budget 2026, Government provided a record allocation of €640 million for the Sustainable Energy Authority of Ireland's residential and community grant schemes, allowing us to target 73,000 home energy upgrades this year. Capital expenditure of over €2 billion has delivered over 287,000 home energy upgrades from 2019 to end August 2026, including over 39,500 fully funded upgrades for households at risk of energy poverty under the Warmer Homes Scheme.

In January this year, I expanded and reformed the retrofitting schemes to ensure more homeowners can receive grants. The new measures included increased attic and wall insulation supports for lower-income households, an increased grant of €12,500 for heat pump installation, and new grants for windows and doors. Almost 89,000 applications have been processed to end August 2026, an increase of 116% on the same period last year. This year to end August 2026 almost 42,000 homes have been upgraded through SEAI schemes, including over 6,800 homes at risk of energy poverty under the Warmer Homes Scheme.

Additionally, I commissioned the Commission for the Regulation of Utilities (CRU) to undertake a Review on Competition Assessment and Retail Price Drivers in the Energy Markets. An interim report on this was published by the CRU on 11 May which found that competition in the Irish retail electricity and gas markets is functioning effectively and that Ireland compares well to the EU average in terms of market concentration. The CRU also found no evidence of excess profitability or elevated returns on the part of energy companies. This report has been an important input to the work of the NEAT.

The NEAT continues to work intensively on an Energy Affordability Action Plan. The Action Plan will be focused on short, medium and longer term measures to support households and businesses in meeting their energy costs and will incorporate a number of areas including:

• addressing the price of energy;

• sustainable demand and enhancing flexibility;

• addressing energy poverty and customer protections; and

• energy affordability for businesses.

To facilitate this work and ensure a 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 nearing completion. 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 as well as the Electricity Association of Ireland and retail electricity suppliers have also taken place.

The Action Plan will inform measures for consideration in Budget 2027 and will be submitted to Government in the coming weeks. Publication of the Action Plan will follow approval by Government.

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