Windfall tax needed on energy companies, say O’Callaghan

The Social Democrats will propose a windfall tax on the excess profits of energy companies at the party’s think-in today.

The party said the windfall tax will “ensure that those companies profiting most from the energy crisis pay their fair share.”

Deputy leader Cian O’Callaghan said, “as increasing numbers of families struggle to pay their bills, Ireland’s major energy suppliers continue to report hundreds of millions of euro of profit.”

The Dublin Bay North TD noted, “to give just a few examples, last year the ESB made a profit of €636m; Energia made a profit of €140m, including €82m at its retail arm; and Bord Gáis Energy posted profits of €72.5m.”

“Despite these mammoth profits, these companies have all announced price increases this year – with Energia, SSE and Bord Gáis all announcing price increases in the past week, which will add hundreds of euro to consumers’ bills,” he said.

O’Callaghan said, “as costs for families continue to soar, the government must do something to ensure the burden of paying for this energy crisis is spread more evenly – by imposing a windfall tax on the excess profits of energy companies.”

“A windfall tax on the excess profits of energy companies would raise at least €450m – money which could be used to pay for a targeted €400 energy credit for those low and middle income households who are struggling most,” he explained.

“This is not just about the revenue that would be raised by this measure; it is about basic fairness – and ensuring that companies making record profits, in a worsening cost of living crisis, pay their fair share,” O’Callaghan said.

Social Democrats TD Cian O’Callaghan

Social Democrats TD and energy spokesperson Jennifer Whitmore is currently drafting legislation to introduce a windfall tax on the excess profits of energy companies; O’Callaghan said the measure will be discussed at the party’s think-in ahead of the Dáil’s return.

O’Callaghan said that the party would also be discussing their Solar For All plan, which looks to double grants for solar panels and ramp up their installation across Ireland.

The Dublin Bay North TD is gearing up to step in for party leader Holly Cairns, who is about go on martneity leave and will not be attending the think-in.

O’Callaghan was confident ahead of the think-in, saying “as this new Dáil term starts, the Social Democrats are the fourth largest party in the Dáil and the fastest-growing political party in the country.”

“Our positive message of change, and our constructive policy platform, is resonating with an increasing number of people who view the Social Democrats as a real alternative to this jaded government,” he said, with the party still polling in double digits following the Dublin Central by-election victory in May.

“We are determined to continue to hold this government to account and fight for measures that would make a real and lasting improvement to people’s lives all over the country,” O’Callaghan said.

“We have the resources as a country to permanently address the many problems that we face – rather than just paper over the cracks. We just need a new government and a new approach.”