Good morning ladies and gentlemen. May I commence by thanking Energy Action for hosting the "Energy Action European Conference on Fuel Poverty" and thank Airtricity, Bord Gáis Eireann and Electric Ireland for sponsoring this event.
"Reframing Fuel Poverty in Ireland" is a fitting title for the conference as we all grapple with new ways in which to tackle energy poverty. This event is unique. Why, you may ask? Well, it is the first of its kind, convened to enable researchers, policy makers and medical experts from all over Europe to share their understanding on the complexities of Energy Poverty. I congratulate Energy Action for organising the conference.
We are very privileged to have participation from a range of distinguished speakers, who will shed light on what is happening in their part of the world. I note there will be contributions from Ireland, France, Spain, The UK, Northern Ireland, Scotland, Canada, New Zealand and also from the European Commission. Against the backdrop where there is no common European strategy on how to deal with fuel poverty, the diversity of perspectives over the next two days highlights the value of this initiative. Speakers will cover varied topics from "The New fuel Poverty Scheme in France" to "Fuel Poverty in Eastern and Central Europe" and much more, including the intriguingly entitled "Dismantling Fuel Poverty Initiative: How to get it all wrong".
First and foremost the event will strive to raise awareness around energy poverty which is essential given the extent of this problem internationally. If your estimate that 65 million people in Europe live in energy poverty is even remotely accurate it deserves greater focus from policy makers.
The conference will allow organisations tasked with tackling energy poverty to connect with agencies whose role is to support and advocate for the vulnerable here at home and across Europe. Through this collaboration, knowledge can be exchanged and some common ground achieved. One of the ultimate goals is to gain consensus on how to tackle energy poverty on both a national and on a European scale. I believe we can work together to develop energy poverty strategies that can inform policy at EU Level.
It is very timely for Ireland to hold this European conference particularly in the year that we host the EU presidency. Completing the internal market in energy, or settling on renewable energy targets post 2020, or other typical EU Presidency agenda items can appear abstract to EU citizens – whereas the relevance of this focus on energy poverty is immediately apparent.
The Affordable Energy Strategy
Everyone should be able to afford to heat and power their homes to adequate levels. This is a fundamental principle of the Affordable Energy Strategy that was published by my Department in November 2011. Providing energy efficiency improvements to homes in, or at risk of, energy poverty, results in multiple benefits to recipients, including enhanced energy affordability, tangible health improvements and overall wellbeing.
Tackling energy poverty requires joined-up-thinking between Government Departments and other bodies concerned with tackling the problem. Mindful of this, the strategy was produced by the Inter-Departmental Group on Affordable Energy (IDGAE) and is a collaborative work of Government Departments and Agencies, Local Authorities, Energy Utilities, Regulators, NGO’s and Community Based Organisations, all aiming to deliver their part of the solution.
It is key to protecting the most vulnerable in our society who may be at risk of energy poverty and provides a framework for building upon the many measures already in place.
There are 48 actions identified in the strategy that are being implemented gradually over the three year lifespan of the report, including five priority measures: a commitment to review the National Fuel Scheme in the context of examining the feasibility of aligning income supports with the energy efficiency and income of the home; the phased introduction of minimal thermal efficiency standards for rental accommodation; ensuring greater access to energy efficiency measures; the introduction of an area based approach and reforming the eligibility criteria for energy efficiency schemes. I am pleased to say that we have progressed a number of these items.
Better Energy Warmer Homes
The Better Energy Warmer Homes Programme is a pivotal element of the Affordable Energy Strategy that is administered by the SEAI on behalf of my Department, under the umbrella of the Better Energy Programme. The Warmer Homes Programme is delivered free of charge, to low income families. Exchequer funding of over €81 million has been allocated to the Scheme since 2000 which has successfully delivered energy efficiency measures to close on 94,000 low income homes. The measures are provided through a combination of community based organisations, private contractors and via an area based approach. In 2012 the programme delivered over 12,175 energy saving measures to homes in energy poverty.
Despite the current economic challenges, the Government is committed to continuing to deliver energy efficiency measures to vulnerable households. I am pleased to tell you that the Warmer Homes Scheme has again been allocated significant Exchequer funding for 2013. I would like to take this opportunity today to commend the SEAI for the manner in which the Scheme has been administered and rolled out to low income homeowners to date.
Implementation of the Affordable Energy Strategy began in earnest in 2012. Under the Warmer Homes Scheme, reform of the eligibility criteria to address households in extreme energy poverty, was undertaken. This is typically defined as those who spend over 20% of their disposable income on energy services. Prior to this, applicants were considered eligible for retrofit measures if they met defined criteria such as eligibility for the National Fuel Scheme. This one-size-fits-all approach was deemed to be no longer satisfactory in targeting the most vulnerable.
The IDGAE worked with key stakeholders to establish new eligibility criteria to reflect pertinent research available that reveals that the elderly and pre-school children are most at risk. Taking this on board, the eligibility criteria were revised to include; Fuel Allowance recipients; Job Seeker Allowance recipients (for over six months and with children under 7 years of age) and; recipients of Family Income Support.
Area Based Approach
Implementation of an area based approach to the mitigation of energy poverty was also begun in 2012, under the Affordable Energy Strategy. The targeting of policies at those most in need is not always straightforward. Sometimes those in greatest need cannot be identified easily and may be difficult to reach. Take for example, the elderly person on low income, living in isolation, who may not be in the position to access information or ad campaigns in the media, on the range of energy efficiency measures available.
Area based policies have the potential to improve the targeting of those who need intervention most. Armed with this information, an area-based pilot was introduced in 2012 with the aim to target those hard to locate individuals. Exchequer funding of €3 million was set aside for this. So successful was the uptake of the pilot that €4 million has been ring fenced to continue this important work in 2013.
The SEAI is also working with two Local Authorities on a trial basis to ensure that social housing tenants have access to retrofit measures. This is a welcome development and one we are closely monitoring.
NEEAP
The on-going work of implementation of the Affordable Energy Strategy complements other projects that are being progressed in my Department in support of energy efficiency generally. As a society it is incumbent on all of us to step up to the challenge to change the way we use our energy, not only in our homes but also in government, in business and in our communities. Under EU Legislation, we are obligated to achieve a 20% reduction in our CO2 emissions, by 2020. This is indeed an ambitious challenge, but hopefully not too onerous a task. If we all agree to change our energy usage patterns, it can be achieved.
To help Ireland on the pathway to increased energy efficiency by 2020, I recently published the second National Energy Efficiency Action Plan (NEEAP). The Plan contains 97 actions, each of which will play a part in securing a more sustainable energy future for Ireland.
At the same time, I launched the €70m Energy Efficiency Fund targeted on the retrofit of public and commercial buildings.
Changes are taking place for Ireland under EU Legislation, on many fronts. Most people will have seen from ads in the papers, in the media and on the Internet, from the start of the year every property is required to have a Building Energy Rating Certificate (BER) prominently displayed, when offered for sale. I particularly liked the ad where the two rather dismayed individuals are hunting, or "searching for the "BER" and wondering if the "BER" is good"? Well, I am here to inform you that the BER is definitely good. I anticipate that this increased visibility of energy usage, and wastage, while driving activity in the retrofit industry, will also drive us all to live in more energy efficient buildings. This is very welcome news for all involved in combating energy poverty.
We are all agreed that the mitigation of energy poverty is an extremely complex issue, in particular due to the present constrained economic climate here and Europe wide. The simple truth is that it affects people across all societies.
However, available research tells us that, in our society, it is the elderly and young children that are most vulnerable to extreme energy poverty. We should all hold this fact uppermost in our minds, policy makers and those who advocate for people who find themselves trapped in energy poverty alike. In doing so, this should help galvanise us all to do the very best we can, to work towards a solution at home and across Europe.
Finally, I wish Energy Action every success with the conference over the next two days.