Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

There is no disputing that we are in the midst of an unprecedented energy crisis. It is the key driver of the soaring cost of living that continues to affect every household in Ireland. However, we know that its impact is not indiscriminate. Low- and middle-income households are disproportionately affected by the soaring cost of living, as they spend a higher proportion of their budget on energy, food, and housing. This is borne out in the latest figures, which show that 40% of households are now estimated to be living in fuel poverty, nearly 270,000 customers were in arrears on their energy bills at the end of last year and the number of parents using food banks has doubled from what it was last year.

This is the devastating reality of life in Ireland for so many workers and families, and while customers' bills soar, energy companies are making bumper profits. In the first six months of 2022, the ESB's profits more than tripled to a staggering €390 million. During that same period, Bord Gáis Energy's profits increased by 74%. To add insult to injury, both companies imposed multiple price hikes throughout last year. Despite wholesale energy costs decreasing in recent months, not a single energy company or supplier has reduced its prices. In fact, we are told it could be months, even next year, before household energy prices drop. The unbridled profiteering we have seen in recent years cannot be allowed to continue. The market is utterly failing customers. The State must step in, as it should have done long ago.

Hard-pressed customers cannot wait any longer for the drop in wholesale gas and electricity prices to be reflected in their bills, not least because there is no guarantee that wholesale prices will drop for a sustained period. There are too many variables, including the very uncertain situation in Ukraine. That is why a new approach is urgently required. That is exactly what the Social Democrats propose in today's motion.

The Government's failure to commit to price caps is indefensible. What is desperately needed is a targeted energy price cap, one which would cap the price of average energy usage for domestic customers and businesses. This approach would ensure that everyone gets their essential energy needs met at an affordable price and, crucially, that wealthier households do not disproportionately benefit. I urge the Minister of State to give our proposal immediate consideration. This is not a blanket energy price cap like the one introduced in the UK, with no upper limit on the amount of discounted energy. It is a targeted measure that would also incentivise energy conservation.

Alongside targeted price caps is the urgent need to introduce a windfall tax on energy companies. It is a scandal that energy companies continue to profiteer from a war. The Government's reluctance to respond rapidly has been very disappointing. It is almost six months since the Minister, Deputy Eamon Ryan, first announced his intention to introduce a windfall tax, yet we are still waiting for the necessary legislation as record profits go unchecked.

Many households and businesses are at breaking point. They cannot absorb the soaring energy costs any longer. I very much welcome yesterday's announcement of the Government's intention to introduce a windfall tax, however late in the day. The key point is that households must be the main beneficiaries of this tax. In this respect, there is a strong case for a targeted price cap, as called for in the motion. I call on the Minister of State, Deputy Ossian Smyth, to give this proposal urgent consideration. Will he assure the House that the fact that the Government is not opposing the motion today is meaningful? We look forward to further detail in that regard.

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