Soc Dems say that energy crisis “demands urgency,” call for windfall tax on energy companies

The Dáil will debate a Social Democrats’ motion on Wednesday, which will demand that the government introduces a windfall tax on the excess profits of energy companies.

Jennifer Whitmore, the party’s energy spokesperson, said “this winter, more and more households across the country will be pushed into energy poverty and deeper into debt as electricity, gas and home heating oil costs continue to soar.”

There are already more than 323,000 electricity accounts in arrears, according to the Commission for Regulation of Utilities (CRU), amounting to around one in seven households.

“Average monthly wholesale electricity prices in Ireland increased by 9.6 per cent in August alone, and are up by 77 per cent year-on-year. Retail electricity prices in Ireland were already the highest in Europe, with customers paying an average of €480 per year more than the EU average.

In recent weeks, as many as eight energy providers have hefty price increases – some by double digits.

“And while households are constantly hit with relentless price rises, the energy companies continue to make eyewatering profits,” Whitmore said.

“For instance, the ESB recorded a pre-tax profit of €445.6 million for the first half of 2026, up from €351.6 million in the same period last year. It has also recently been confirmed that the semi-State company’s CEO could see his salary hiked by a total of €161,000 by 2028, with a €90,000 increase to €410,000 per year having already been sanctioned.,” the Wicklow TD noted.

“Meanwhile, Energia made a pretax profit of €70 million for just the second quarter of 2026, up 25 per cent year-on-year; and Bord Gáis Energy recorded pre-tax profits of €50 million for the first six months of this year.

Whitmore said “these kind of bumper figures, and gold-plated salaries, are indicative of surging profits in the sector. Wholesale electricity prices are dictated largely by the cost of gas, meaning that energy companies that produce electricity from other sources, including renewables, can experience significant windfall gains when gas prices are high.”

“The Social Democrats believe it is immoral and unjust for energy providers to be generating such gargantuan profits off the backs of individuals and families already struggling under the weight of an unprecedented cost-of-living crisis,” she said.

“That is why we’re proposing a windfall tax on the super profits being made by energy companies. Our motion calls on the government to reintroduce both a market revenue cap and a temporary solidarity contribution, putting them on an independent statutory footing under Irish law that extends their operation from March 1, 2026 to December 31, 2027.”

Whitemore said there is a precedent for the proposal;  in 2023, the government legislated to introduce a temporary solidarity contribution and a cap on market revenues to clamp down on windfall gains in the energy sector.

Those measures, despite being in place for a relatively short period of time, raised a combined €456 million (with analysts noting this was down to the influence of the Green Party in government at the time)

“Under our proposal, funds raised through a windfall tax would be ringfenced to provide a targeted energy credit of €400 for households with incomes of less than €70,000,” Whitmore explained.

“Finance Minister Simon Harris has suggested that the Government should wait for a joint EU approach to windfall taxes on the excess profits of energy companies. But there is no reason to wait – Portugal has already moved ahead with the introduction of its own windfall tax and Ireland should do likewise,” she said.

“Because the sheer scale of this energy crisis demands urgency. And struggling households do not have the luxury of time.”