Windfall tax needed on energy companies, says Andrews

Fianna Fáil MEP Barry Andrews has said that Ireland should follow in the footsteps of Germany, Italy, Spain, Portugal and Austria in implementing a windfall tax on energy companies.

The Fianna Fáil MEP said that the Irish government implemented a similar measure in the wake of the Russian invasion of Ukraine in 2022.

Andrews said, “the sky-high energy prices are really impacting people badly, and any windfall gains by global energy companies must be redistributed to those who need it most.”

“We need a European solution to this crisis, that helps our small businesses, farmers and consumers. We need to use any windfall revenue to provide temporary relief, while also earmarking funding for investment in an energy system resilient to future shocks, through homegrown renewables and electrification.”

Three of the five countries that have implemented a windfall tax on energy companies (Germany, Spain, and Austria) have centre-left parties in coalition or leading the government, similar to how the Green Party were in coalition in Ireland in 2022 and was said to have been a major influence on the windfall tax being implemented in 2022.

Andrews said that the oil crisis has exposed just how exposed Ireland is to major energy shocks.

“The Trump administration’s disastrous war on Iran has once again shown Europe’s vulnerability to imported fossil fuels and led to major increases in wholesale natural gas and oil prices,” Andrews stated.

“To avoid a repeat of this mess, we must double down on electrification through renewable energy, heat pump and electric vehicles. We need to rapidly scale-up our domestic grid and increase our interconnection. We have made huge advances already, but we now need to speed up electrification across the country.”