Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

I thank our contributors from the Central Bank. On the last point about the nature of the energy price increases, Europe has substantially increased its renewable energy production. I think I am correct in saying that 2020 was the first year in which the majority of electricity in Europe was produced renewably. We have actually increased the renewable energy supply in Europe and in this country but that has not made a damn bit of difference to the cost of energy. I ask Dr. Cassidy to explain that conundrum. The narrative we are hearing from the Government is that faced with these shocks, we have to wean ourselves off our reliance on fossil fuels. Now, for climate change reasons, we should do so anyway but there is an implication that if we do that, and develop more indigenous renewable energy, it will somehow lead to a reduction in the price of energy and electricity. Is there any reason to believe that, other than the ideological assumption underpinning it? It would be interesting to hear the Central Bank's response to that because when I look at the situation, given that the market is setting these prices regardless of where or how the energy or electricity is produced, there seems to be no evidence to support that suggestion.

The difficulty we have is that when we are talking about inflation and the cost of energy rising, there is an implication that we are all in this together in suffering the consequences, that this is a big problem for everybody. Is it fair comment to say that it is not a big problem at all for those who produce energy? Actually, they are doing extraordinarily well and this is a tale of two shocks. There is the shock for the majority who have to buy the petrol, energy or electricity from the producers and suppliers but what we are witnessing is a bonanza in profit for those same producers and suppliers, whether the energy is renewable or fossil-fuel based. That is actually what is happening here. I would be interested to hear Dr. Cassidy's comments on that. Is that an accurate description of what is happening in this country, in Europe and globally?