Department of Environment, Climate Change and Communications of Ireland

09/27/2022 | Press release | Distributed by Public on 09/27/2022 09:21

Department of the Environment, Climate and Communications drives major package of supports to protect families, households, and businesses – including €600 electricity credit[...]

  • Record €1 billion for the Department in Budget 2023 will accelerate the move to an energy-resilient, sustainable and digitally-connected Ireland

The large increase in energy prices, driven by the war in Ukraine, is having a significant impact on families, households and businesses across the country. This Department's work has been central in designing a major all-of-Government package to address rising energy bills as part of Budget 2023.

An enhanced electricity credit of €600 will be applied to electricity bills, €200 before Christmas and the remainder (in two tranches) early in the New Year. This will benefit all Irish households, with a total value of €1.3 billion. This credit will be supplemented by a suite of targeted cross-Government measures aimed at protecting those most at risk of fuel poverty. These measures are informed by work undertaken by the Department. For example, revisions to eligibility criteria will see more families and households receive the Fuel Allowance, as well as significant lump sum payments.

The Department is acutely aware of the importance of protecting jobs, in order to protect families, during this energy crisis and this has been key in the design of the new Temporary Business Energy Support Scheme (TBESS), which will provide up to €10,000 per business per month until spring 2023 - to help meet rising energy costs. The scheme will support eligible companies, covering 40% of the increase in their energy bills.

Funding for retrofitting, solar PV grants, the National Broadband Plan and the Circular Economy

Over €1 billion is allocated in Budget 2023 to the Department to deliver a climate-neutral, sustainable and digitally-connected Ireland. In line with the Programme for Government, funding is prioritised for the National Broadband Plan, energy transformation, protecting our environment and the transition to a Circular Economy. The 2023 Budget allocation has also been informed by the forthcoming Climate Action Plan 2022 and the Sectoral Emission Ceilings.

Significant funding of just over half a billion Euro will go toward energy transformation, including the national retrofitting and home energy upgrade programmes, which provide supports including 80% grants for cavity wall and attic insulation and free upgrades for households in energy poverty. €291 million of this allocation will be funded from carbon tax revenues. Carbon tax revenues will also go towards an enhanced Fuel Allowance scheme. Next year, there will be record funding allocations for retrofitting, but also for the installation of solar panels for homes, businesses, community organisations and every school in the country, helping to protect them against energy cost increases into the future, while also reducing our emissions.

Commenting on Budget 2023, the Minister for the Environment, Climate and Communications, Eamon Ryan TD, said:

"I know that families and businesses are struggling with the rising cost of living as a result of Russia's invasion of Ukraine. This is a budget that is first and foremost about protecting people and businesses. It is also a progressive budget, because it ensures that households that are least able to cope with the unprecedented energy increases will be given the greatest supports. This has been made possible because of careful analysis and planning which means that we provide relief for people - in a financially sustainable way.

"We cannot, unfortunately, insulate people completely from the cost impact of Russia's war, but I believe the combined package, including energy credits, targeted social welfare measures, business supports, and a ramped up retrofitting programme to 37,000 homes in 2023, are the right and equitable measures that we can take right now. In addition, I will be working with my colleagues at an EU level with regard to market realignment and the progression of mechanisms to recycle excess energy profits back to hard-pressed consumers.

"While this budget is about helping people right now, it also provides the funding to protect our environment and progress our long-term goal of a climate-neutral, sustainable and digitally-connected Ireland. The real lasting solution to this fossil fuel crisis, which is causing so much hardship for people, is to scale up and speed up our transition to renewable energy systems. This budget shows that this Government remains 100% committed to this ambition."

Minister of State with responsibility for Postal Policy and Eircodes, Hildegarde Naughton TD, said:

"Budget 2023 includes €10 million to strengthen Ireland's post office network. As Minister, I am acutely aware of the importance of supporting our 900-strong post office network which play a vital role in community life.

"This funding will give postmasters certainty and stability, allowing them to plan and develop their services. This is part of a €30 million, three-year funding package that recognises the central role played by postmasters in our communities, and ensures that families and businesses can continue to access public services close to where they live and work."

Minister of State with responsibility for Communications and Circular Economy, Ossian Smyth TD, said:

"The additional funding for connectivity and communications will enable us to continue the roll-out of high-speed broadband to every home in the country, and to strengthen our defences against serious national cyber incidents. In 2023, we will also provide dedicated funding for a range of initiatives, as part of our broader transition to a Circular Economy."

Key Budget 2023 allocations

  • €1.038 billion - an increase of 19%** on 2022 - has been allocated to the Department in Budget 2023
  • €513 million - up by 34%* and the highest amount ever - has been allocated for energy transformation. €337 million of this allocation is provided for SEAI residential and community energy upgrade schemes, including the Solar PV Scheme of which €291 million is carbon tax revenue. €74.8 million is earmarked for energy efficiency and renewable energy schemes in businesses and the public sector, including a new scheme for SMEs
  • €143 million - an increase of 6%* - will support initiatives to lead Ireland's response to the climate crisis, including funding for vital research and Just Transition
  • €110 million - an increase of 11%* - will support the transition to a Circular Economy and will protect our environment and biodiversity
  • €273 million - an increase of 21%* - will support connectivity and communications, including almost €218 million to further progress the roll-out of the National Broadband Plan and an additional €5 million to further build capacity in the National Cyber Security Centre (NCSC)

Energy Transformation including Retrofitting: €513 million (up by 34%*)

  • €337 million for SEAI residential and community energy upgrade schemes, including the Solar PV Scheme, will support the delivery of the National Retrofit Plan. Of this, €291 million is being ring-fenced from carbon tax revenue
  • This allocation is the highest ever. It means that the Warmer Homes Scheme, which provides free energy upgrades for homeowners who receive certain social welfare payments; National Home Energy Upgrade Scheme;Better Energy Homes;Community Energy Grant Scheme; and the Solar PV Scheme will each have record allocations under Budget 2023
  • This will deliver over 37,000 home energy upgrades, including 6,000 free upgrades under the SEAI energy poverty scheme, as well as bringing over 13,800 homes to a Building Energy Rating (BER) of B2.
  • A special enhanced grant rate, equivalent to 80% of the typical cost, for attic and cavity wall insulation will continue to be available to all households to urgently reduce energy use
  • €74.8 million will improve energy efficiency and increase the use of renewable energy in businesses and the public sector, including a new Non-Domestic Retrofit Scheme, which will provide a tailored retrofit pathway for SMEs

Climate Action and Environment Leadership: €143 million (up by 6%*)

  • This funding will ensure that we can deliver on our climate action commitments. Climate research and the development of new technologies will be central to meeting our targets of a 51% reduction in greenhouse gas emissions by 2030 and net zero emissions by 2050
  • Building capacity across the Department and its agencies will also underpin implementation of the recently announced Sectoral Emissions Ceilings
  • €29 million for projects that are approved for EU and national Just Transition funds across the wider midlands region, including east Galway, Kildare, Laois, Longford, north Tipperary, Offaly, Roscommon and Westmeath
  • The funding will support ongoing implementation of 56 local and community projects under the national Just Transition fund
  • €17 million for research to enable Ireland to protect the environment and meet its renewable energy targets and climate action commitments
  • €25 million as part of our ambition to double Ireland's funding for developing countries to tackle climate change by 2025

Protecting our Environment and growing the Circular Economy: €110 million (up by 11%*)

  • €54.4 million for the EPA (Environmental Protection Agency) - up by €2.8 million on last year
  • €2.6 million towards the implementation of the Circular Economy Act and the Government's Waste Action Plan, including the introduction of a new Deposit Return Scheme for aluminium cans and plastic bottles
  • €2 million for conservation and protection, including our inland fisheries and aquatic biodiversity, some of which are under threat
  • €10 million to protect our environment through waste management initiatives and enforcement activities by Local Authorities
  • €15 million for geoscience projects, activities and research, and for a broad range of work, including improved groundwater / drinking water supply, the supply of critical raw materials, tackling coastal vulnerability, and geothermal energy development
  • €26 million to remediate former landfill sites including, for example, the illegal site at Kerdiffstown, Kildare

Delivering world-class Connectivity and Communications: €273 million (up by 21%*)

  • €218 million will progress the roll-out of the high-speed broadband network next year - under the National Broadband Plan. Fibre broadband will 'pass' and be made available to an additional 80,000-85,000 premises in 2023, while almost 700 primary schools will be provided with high-speed connectivity by the middle of next year
  • €7.5 million extra will be invested in the National Cyber Security Centre (NCSC) in 2023. This will bring staff numbers to 62 by the end of 2023 (up from 25 in 2021)
  • Funding will also be provided for the creation of a national emergency text alert system. This public warning system will enable private mobile phone operators to text people, on behalf of the Government, to alert them to imminent emergency events, such as severe weather events.

Strengthening Ireland's post office network

Budget 2023 includes €10 million to support a sustainable, nationwide post office network. This is part of a €30 million, three-year funding package. Through this measure, the Government recognises the importance of a high-value and high-quality post office network to citizens throughout Ireland, as well as the central and trusted role of postmasters in our communities. This is a significant development, whereby the Government is now providing direct financial support to postmasters who operate much of our post office network

*Refers to an increase on the original 2022 allocation

** Refers to an increase on the revised Budget 2022 allocation (as per the December 2022 revision)

ENDS

Notes to the Editor

Reduce Your Use Campaign

The nationwide ##ReduceYourUse public information campaign promotes and encourages energy efficiency, while highlighting the range of Government supports that are available for households and businesses to assist with rising energy costs.

The campaign will be phased, tailored for different seasons, activities and energy demands. It will highlight how war and conflicts are affecting energy costs across Europe and how, now, more than ever, we need to be mindful of how we use energy in our daily lives. The campaign encourages people to reduce their energy cost by reducing their energy use and encourages long-term sustainable behaviour.

Energy efficiency advice within the campaign is provided by experts at the Sustainable Energy Authority of Ireland (SEAI). It is practical and evidenced-based, detailing what actions can help to save the most money and energy.