Minister Ryan secures government approval for new Energy Poverty Action Plan
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
The government has today approved a new Energy Poverty Action Plan, which provides for the establishment of a €10 million fund to further support people in, or at risk of, energy poverty this winter and into 2023.
The Department of the Environment, Climate and Communications will work with suppliers, relevant public bodies and NGOs to provide financial support to citizens experiencing difficulties meeting their energy costs this winter, including Pay As You Go gas and electricity customers. The new fund will be available to bolster hardship funds (which most suppliers have in place). People are advised to engage with their suppliers directly or contact the Money Advice and Budgeting Service (MABS), St Vincent de Paul or ALONE, who can advocate on their behalf to suppliers.
In addition, the Minister for the Environment, Climate and Communications will extend the definition of 'vulnerable customers' to include people who are financially vulnerable, to ensure they can avail of additional consumer protections. This will include those in receipt of Fuel Allowance, Job Seekers Allowance for over six months, Working Family Payment, One-Parent Family Payment, Domiciliary Care Allowance or Carers Allowance.
The Energy Poverty Action Plan also sets out the actions the government has already put in place to tackle energy poverty and help people to pay their energy bills as part of the wider cost of living crisis. These measures include:
Minister for the Environment, Climate and Communications, Eamon Ryan said:
"With electricity and gas price rises because of the war in Ukraine, people are facing energy costs never experienced before. We know from our regular Reduce Your Use tracker surveys that people are worried that they won’t be able to pay their energy bills, or that they won’t be able to heat or power their homes adequately, particularly during cold snaps like the one we are experiencing now. The government understands how hard it is this winter, and this scheme is designed to get money out fast to those who need it most.
"The €10 million fund from my department will bolster hardship funds already provided by many suppliers. People are encouraged to engage with their energy suppliers and seek support from them. In addition, customers in need of additional support can apply for an Additional Needs Payment provided by the Department of Social Protection. This includes customers on a Pay As You Go meter who may need immediate financial assistance to pay their meters and keep their energy on. Every effort will be made to ensure that people in financial distress, and who qualify, receive an Additional Needs Payment on the same day or as soon as possible where it relates to electricity and heating expenses.
"We have worked closely with groups like MABS and Alone throughout this autumn and we have listened to their advice, which is to provide quick, small injections of financial support to people, rather than extending credit, which would only push people into further debt. People are also advised to reach out to these groups who can advocate on their behalf with their suppliers if appropriate."
The Energy Poverty Action Plan also includes a number of medium- and long-term initiatives to help understand and address the complexities of energy poverty more:
1. An injection of €248 million in additional funding for the Warmer Homes Scheme up to 2027 (from the European Regional Development Fund) to retrofit more lower-income homes as a solution to a root cause of energy poverty.
2. More in-depth research to better measure and respond to energy poverty in Ireland, led by the ESRI and involving the Department of the Environment, Climate and Communications; the Department of Social Protection; the Sustainable Energy Authority of Ireland (SEAI) and the Central Statistics Office (CSO).
The specific details of the fund will be agreed between the Minister of the Environment, Climate and Communications and the Minister for Public Expenditure and Reform.
ENDS
Energy customers in need of additional supports this winter can:
1. engage with their supplier to discuss the range of supports available
2. apply for an Additional Needs Payment provided by the Department of Social Protection. This payment is also available to customers on a Pay As You Go meter. Every effort will be made to ensure that vulnerable individuals in financial distress, and who qualify, receive an Additional Needs Payment on the same day or as soon as possible, where it relates to electricity and heating expenses
3. seek financial advice and advocacy support from the Money Advice and Budgeting Service (MABS)
The existing definition of vulnerable customers will be extended to include people who are financially vulnerable, that is, those in receipt of Fuel Allowance, Jobseekers' Allowance for over six months, Working Family Payment, One-Parent Family Payment, Domiciliary Care Allowance or Carers Allowance. At present, the definition of a vulnerable customer is limited to those in the following two categories:
The extension of the definition of a vulnerable customer will see the establishment of a third category of financially-vulnerable customers to cover the winter periods of 2022/2023 and 2023/2024.
As part of its strengthening of consumer protections, the Commission for Regulation of Utilities (CRU) is running a communications campaign encouraging people, where appropriate, to register as a vulnerable customer with their supplier.
The moratorium periods, during which bill-pay electricity and gas customers cannot be disconnected, are as follows:
All suppliers are required to put vulnerable customers on the most economic tariff.
The Reduce Your Use/Stay Warm and Well campaign is a government initiative to provide practical information to households on how they can reduce their energy use over the winter period, and how they can access financial supports.
The government is asking people to stay warm and well this winter and to know that help is available if they need it over the coming weeks and months.
Where safe and possible, people are being asked to reduce energy wastage. Using less energy will help homes and businesses to save money.
Key partners involved in the campaign are the Commission for Regulation of Utilities, MABS, ALONE and the SEAI.
Further information on help and supports over the coming winter period can be found on the Reduce Your Use homepage.