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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Energy bills and renewable generation

Summary

Cian O’Callaghan highlights surging electricity prices and widespread household arrears, arguing fossil-fuel dependence and inadequate renewable delivery are keeping bills high. Chambers cites major growth in renewable capacity and says targeted fuel allowance and budget measures will support lower-income households.

Verona Murphy An Ceann Comhairle Independent

I call Deputy Cian O'Callaghan. The Deputy is on his feet.

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From the party that crashed the economy and brought the IMF here? Jesus Christ, we do not all have amnesia here. Come on.

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Verona Murphy An Ceann Comhairle Independent

Please proceed, Deputy O'Callaghan.

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That is some nerve of Fianna Fáil to give lectures about sound economic management.

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Deputies

Hear, hear.

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Seventy-seven percent is how much wholesale electricity prices have surged in the past year. That will not come as a surprise to the over 300,000 households currently in arrears, and it is not news to the people lying awake at night worrying about how they will keep the lights on.

We have to get off this endless merry-go-round of price shocks and soaring bills. The Minister knows, I know, we all know that we are particularly vulnerable to these price shocks because we are so dependent on fossil fuels. Trump is to blame for a lot of things, but he is not to blame for that. We are hooked on fossil fuels, and that is a direct result of this Government's incompetence and negligence, which has left hundreds of thousands of households hopelessly exposed. Where are people supposed to find the money for all these price increases? They are already trying to cobble together the cash to meet rising rents, mortgage payments, groceries and childcare costs. If they are relying on home heating oil, they will have seen the cost to fill soar by €700.

The pressure on individuals and families is now immense and never-ending, and the cracks are beginning to show. More than half a million households are behind on their electricity and gas bills. Unless the Government acts, it will get worse. That is why we must see a targeted energy credit of €400 in the budget. This would help those low- and middle-income families who desperately need it. It is a vital measure to provide them with some breathing room. However, the budget needs to go much further than that.

The harsh reality is that the Government has utterly failed to invest in solar and renewable energy, and it is families the length and breadth of this country who are now reaping the consequences of its failure. A no-brainer for the budget would be a massive investment in solar to bring people's energy bills down by at least €450 a year - this year, next year and every year. The Social Democrats have a solar-for-all plan that the Minister could implement. It would double the grants for solar panels, introduce a grant for battery storage and make solar panels free for households at risk of fuel poverty. Crucially, it would roll out plug-in solar. That is what we need to see - some real ambition from the Government.

These are measures that the Government could introduce in two weeks' time. They are sustainable and we have the money to pay for them. Will the Government introduce them or will it just keep making excuses?

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I reiterate that Government is cognisant of the serious pressure that many families and households face into the winter. That is taking centre stage in our Estimates discussions and how we examine different and further interventions on how we tax energy in the economy.

To give workers a break, there will be an income tax package, which will give some workers some respite through the winter period. In the social protection system, we want to target the fuel allowance allocation and other changes that will be under consideration to help those most in need and those facing the significant price rises over the winter period. The Minister, Deputy O'Brien, is working on some areas, which I will not comment on the detail of, relating to our grant support system and how we better calibrate it to promote renewable energy options, to get people off fossil fuels and to drive greater affordability. He is examining a range of options in that context in advance of budget 2027.

We are also looking at how we can drive affordability in the provision of different services, including childcare, the cost of disability and other mechanisms through our social protection system to help those most in need. It is unfair to say that the Government has done nothing. We have taken some of the biggest interventions per capita in Europe to mitigate the price rises. A total of €1 billion has been expended already on reductions in petrol and diesel. We are considering further options for home heating oil. Many households, in particular in rural Ireland, are impacted by that price rise, which is likely to continue and be sustained over the winter. That is why that range of options for tax and expenditure is under consideration by Government, all centred on helping people, targeting the most vulnerable and protecting people through the winter.

The Government is also prioritising sustainability. That is why the grant support systems that the Minister, Deputy O'Brien, is evaluating will be changed to help incentivise greater uptake of grants for energy sustainability. He will set that out in or around budget day.

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Is the Minister's Government not ashamed that the one offshore wind farm we have is currently being dismantled? That is the Government's level of delivery of offshore renewables. In other countries that have invested, it has brought down people's energy bills. What is the Minister doing about it? We have over half a million households in electricity and gas arrears. I asked the Minister about a targeted energy credit and he had nothing to say about it. He has the resources to do it. All the advice is that he needs to target resources to help people who need it most. Has the Minister nothing to say about that? Will there be a targeted energy credit to lift those households out of energy arrears? What is he going to do for the households who are behind on their bills, are afraid to put the heat on, and are worried sick at night about what they are going to do? Will he adopt our proposal for a targeted energy credit? Will the Minister use the resources at his disposal to do something useful for those households? What does the Minister have to say about our constructive proposals for a targeted energy credit? Please answer that question.

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On the Deputy's first point, he has clearly not read the facts about electricity generation from renewables. It has increased five-fold since 2005. Regularly throughout the first half of 2026, almost half of Ireland's electricity came from renewable sources. Ireland has now reached a record of over 8 GW of renewable generation capacity, up from 4.8 GW in 2020.

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It is not bringing down bills. It is going into data centres.

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Significant progress is being made on renewable energy. The Deputy needs to correct the record on that. He is dismissing progress. We have been clear that the broadened eligibility for fuel allowance last year has brought over 400,000 households into the social protection system. That is under consideration as a direct payment that is targeted at people in the lowest four income deciles in budget 2027. We want to use fuel allowance and other measures in our social protection system to help those most in need. That is the impulse of this Government, protecting the most vulnerable, supporting affordability and making sure we give workers and families a break when it comes to income tax.

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