I move:
That Dáil Éireann shall take note of the Report of the Joint Committee on Social Protection, Community and Rural Development and the Islands entitled "Report on Energy Poverty 2024", copies of which were laid before Dáil Éireann on 24th June, 2024.
I am taking this as Leas-Chathaoirleach of the committee. The Cathaoirleach, tragically, is burying his brother, John Naughten, today. It is a sad time for the House. Not only has Deputy Naughten suffered a bereavement, I have just heard the Minister, Deputy Peter Burke, has suffered a bereavement in his family as well. I acknowledge the great leadership our Cathaoirleach has shown on the committee, particularly on this issue of energy poverty.
There is a quote I have used often in this House and I will use it again. It is from the science fiction writer William Gibson. He said the future is already here, just unevenly distributed. This sticks with me because it is self-evident around the issue of energy poverty and retrofitting. There are people already living in the energy future. They live in a highly rated, energy-efficient home, be it an A-rated or B-rated home. Perhaps they have enough money to retrofit or perhaps they have bought a new property recently, so their energy bills are naturally lower. They might have been able to afford to put a solar array on the roof, maybe a significant one, so they are generating their own electricity.
I know many people in the fortunate situation of having positive energy bills. Not only are they using the electricity off their roof, but they are generating a surplus, that surplus is feeding back into the grid and they are being paid for it. That was a welcome initiative of this Government. They are making money from their electricity, especially in the summertime months or the four peak months for electricity generation.
Some households are fortunate enough to have an EV in the driveway. They can drive on sunshine, particularly during the summer months. In June, the sun might be shining and they will plug their car into their solar panels and drive for free. This is the energy future we want all households to attain. We want all households to live in warm, healthy, retrofitted houses where their energy consumption and, therefore, their energy bills are lower and they can avail of all the benefits that come along with that. Perhaps that involves generating their own electricity and generating a small bit of income from that. The health benefits of living in a high-performing home are enormous. However, that is not the reality. The future is already here but it is unevenly distributed. There are many people, often the poorest in our society, living in poorly insulated homes. They could be F-rated or G-rated homes. Often it is older social housing stock. It does not matter how many shovels of coal you put on the fire when most of the heat and most of your money is going up the chimney. I remember from my childhood when your face is warm and your back is cold. Thankfully it is not my experience now but it is the experience of many households in this country. People, often older people, bank up the fire for the evening and once it goes out at 2 a.m. or 3 a.m., the temperature of the house drops like a stone and they wake up to a cold house in the morning. That is not a situation we want any of our people to be in.
Energy poverty is a complex issue affecting many households globally and is becoming an urgent concern in Ireland. As we aim for a sustainable and greener future, it is vital nobody is left struggling to meet basic energy needs. High energy costs, low household incomes and energy-inefficient housing make life harder for many families. The impact of energy poverty is not just financial; it also affects people's health and well-being. People should not have to worry about whether they can boil the kettle or put the immersion on to have a bath. That should not be one of the things that weigh on their mental well-being.
Energy poverty has been an item of the committee's work between 2023 and 2024, mainly because of the ongoing rise in living costs. The committee began its public meetings in this context in May 2023 and concluded in February 2024. The report makes 41 recommendations spanning three key areas, namely, retrofitting of homes in rural and urban areas, the suitability of the fuel allowance and the impact of energy poverty on mental and physical health. In its scrutiny of energy poverty, the committee held meetings with officials from the Department of the Environment, Climate and Communications, the Department of Social Protection and the Department of Housing, Local Government and Heritage; and with representatives from the Society of St. Vincent de Paul, the Sustainable Energy Authority of Ireland, EnergyCloud, Irish Rural Link, Friends of the Earth and the Irish Cancer Society. The committee also invited written submissions from interested groups and individuals.
The contributions from the Irish Cancer Society stuck with me most from the sessions we had. It was not an area I expected to be most affected but night nurses told us of people on their death bed, surrounded by family wearing overcoats and hats because the person dying could not afford the energy costs or was ashamed to ask for help with energy costs to heat their home as they died. Hearing that personal testimony from the night nurses affected me greatly. A range of recommendations in the report deal with the issue of people who receive a terminal diagnosis and how the State, in my view, should be kinder to those people.
Energy poverty in Ireland is multifaceted. In many cases it is driven by three root causes, namely, high energy expenditure in proportion to household budget, low levels of income and low energy performance of buildings and appliances. Poor people's energy bills are often higher than wealthier people's, for those reasons. Households with higher energy needs, which include families with children, persons with disabilities and older persons, are also more susceptible to energy poverty and its effects. To put it in simple terms, those families spend more time at home. An older person generally spends more time at home than a person who is out working and therefore will be more susceptible to the impacts of energy poverty. It is imperative in the colder weeks and months of the year that those most vulnerable in our society have sufficient heat in their homes to stay healthy and well.
One thing that frustrates me about how we do our budgeting and our business in this House is the silo effect. I firmly believe that investment in the prevention of energy poverty viewed across the totality of the budget would, because of its positive impacts, especially in health expenditure, represent extremely good value for money.
My time will not allow me to go into the recommendations in full but I do want to speak to a number of the points. I will begin with recommendation No. 2. There are a number of recommendations dealing with the issue of the private rented sector. It is the split incentive. If we invest in retrofit, it is the tenant who benefits and the tenant's bills that would fall. The landlord's bills will not fall, so what incentive is there for a landlord to invest in his rental property? We need both carrot and stick in this. We have a commitment in Housing for All to implement minimum energy efficiency standards within our rental stock. That is the stick. I believe we also need to look very seriously at a carrot. We must say to the landlords that if they invest in their property, which will lead to better health outcomes and better energy outcomes for the people who live in their property, the State will help them with that. However that is designed, I do believe there is an incentive there. There is a clear issue around this specific area.
The committee recommends a review and update of the Sustainable Energy Authority of Ireland's overall mandate to include a greater focus on supporting those most at risk of energy poverty. We talk about a wrap-around service in this regard. The warmer home scheme is excellent but it is oversubscribed. We are putting more money into it, which was decided in this budget. It is partially funded through the carbon tax, which is often vilified but that revenue raised goes to very important places, including into the retrofitting of the homes of people who are on lower incomes. It is very important. We need to invest more in that for sure. For those people, however, who perhaps have the wherewithal financially to invest in retrofitting, it is not easy. Undertaking a deep retrofit of your house is not going to be easy anyway. It is a significant building and home improvement project but it is also difficult to try to jump through the hoops to get the grants, to get the three quotes, and to understand the differences and why those are different prices. There are tog values coming back and how in God's name would a person be able to discern value for money between these things? We need to support people in that. We need to make the business of retrofitting our homes a lot easier, and we also need to do that in terms of cost.
There have been significant improvements under this Government with the reduction to 0% of VAT on solar panels and the announcement recently in the budget of a similar move with a reduction the VAT level, if not to zero, on heat pumps. This will put it financially into more people's reach. We need to make it easier again. If I cannot get my head around it as a Deputy with the Green Party and at this full time, how can I expect a normal a person to navigate the process?
We need to look at smart meters and the role of the Commission for Regulation of Utilities, CRU, in this. Again, this is another area where I am bamboozled when I look at my energy usage. First of all, getting access to my smart meter usage is not as straightforward as it should be. When I get it, it is very difficult to interpret that energy usage. Any layperson wants to be able to say what represents best value for money based on the range of plans. We know a lot of people on lower fixed incomes will often go with a prepaid provider, which means their unit energy costs are locked in, and these are not the best value unit energy costs. What if the CRU were mandated with making that smart meter information available to the consumer in a legible and comprehensible fashion and then making common-sense recommendations, either on the type of rate a person should be on or how a person could shift energy usage patterns? These could be simple things like not having the dryer on between 5 p.m. and 7 p.m. because this is the time it will cost the most money. Trying to shift the energy usage also has a big benefit to the grid if we do that sort of movement.
There are also issues with the fuel allowance. This goes back to a general issue and social welfare rates. We really need to be benchmarking this. There has been movement under this Government but there has also been a huge spike in energy costs. The expansion of the fuel allowance does not always keep pace with that.
I want to speak to the situations of end of life or those with a terminal diagnosis. There are a number of recommendations in this regard:
The Committee recommends the provision of automatic entitlement to the Household Benefits Package, Fuel Allowance payment and Additional Needs Payment to people with a life-limiting diagnosis, including children, without means-testing. This would use the existing definition of someone who is diagnosed with a terminal illness with an estimated 24 months or fewer to live, as is used in the case of Emergency Medical Cards.
Another aspect that was discussed at the committee, and which is not very well known, is the solar PV scheme for medically vulnerable homes. This would be for people who have that extra cost, perhaps medical equipment in their homes or who, because of their medical diagnosis, must spend more time at home. This very good scheme is available for putting solar PV on the house to help lessen the cost. I am not sure there is awareness of that. It is certainly something I learned during the course of the committee.
I will not have time to speak in detail to many more of the recommendations. I do, however, want to mention EnergyCloud. The Minister of State is probably aware it does excellent work. We know renewable electricity is intermittent and there are times when the wind is blowing, particularly during the middle of the night, and we have no place to put that electricity as we do not have the battery storage yet. EnergyCloud has come up with a very good and very common-sense solution whereby if we know extra electricity will be generated, people in low-income households would get a text message saying their hot water tank was going to be heated. Rather than waste that energy we could put it into heating the water in low-energy homes. That would be really good usage.
I go back to that original quote, "The future is already here - it's just not very evenly distributed", and consider the commitment we have under the sustainable development goals to reach the furthest behind first. We need to redouble our efforts. There are people who are living in that energy future, which is great and is good news for them that they had the wherewithal, financially and intellectually, to navigate the hoops they needed to jump through. We need to reach the people who are living in energy poor homes, who are living less healthy lives as a result, and redouble our efforts in this energy transition in order that those who are furthest behind are reached and brought with us on this energy transition.