Opposition parties have put pressure on the government to implement a windfall tax on energy companies in the upcoming Budget.
With Ireland set for a lean winter of economic uncertainty and high energy prices, the opposition parties have said that Irish households cannot afford another winter of inaction from the government after a lack of measures for households in last year’s Budget.
Social Democrats TD Cian O’Callaghan said, “the companies profiting most from the energy crisis must pay their fair share.”
The Dublin Bay North TD was speaking at the party’s Think-In prior to the Dáil’s return on Wednesday.
The Soc Dems finance spokesperson named and shamed the energy companies that have hiked prices for consumers, putting ESB, Energia, and Bord Gáis Energy in the firing line.
ESB have reported profits of €636 million, Energia have made a profit of €140 million (including €82 million at its retail arm), and Bord Gáis Energy reported profits of €72.5 million.
Despite the profits, all aforementioned energy suppliers have increased prices for households, claiming that “market forces” were at fault.
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.”
He explained that a windfall tax would raise at least €450 million, which would be turned into an energy credit for Irish households.
With the government spending €505 million to end the fuel protests in April, the opposition has argued that a precedent has been set to address the cost of living crisis, and said that action was needed in the Budget.
“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.
Labour TD and energy spokesperson Ciáran Ahern questioned the optics of the ESB reporting a major profit, and then raising prices for consumers.
“People will rightly ask how profits can rise by more than 20% at the same time as they are being told to dig deeper to keep the lights on and heat their home,” Ahern said.
“The government cannot continue to shrug its shoulders at the cost of electricity. Energy is an essential service. Workers, families and pensioners cannot simply choose to stop using electricity when prices rise,” the Dublin South-West TD said.
The Labour energy spokesperson said, “Fine Gael and Fianna Fáil have had ample warning about the pressure energy costs are putting on households. They cannot allow another winter to approach while families worry about whether they can afford their bills.”
Ahern accused the government of “sitting on their hands,” and said that households could not afford another winter of indifference from the government parties
“The government should introduce a windfall tax on excessive energy profits and put that money directly towards targeted support for households struggling with electricity costs,” he said.