Oireachtas Joint and Select Committees

Wednesday, 25 September 2019

Joint Oireachtas Committee on Climate Action

Carbon Tax: Discussion

Dr. Tricia Keilthy:

Yes. To be clear, the fuel allowance has to increase because it has not taken account of recent energy price hikes due to wholesale costs increasing. We also see the impact of the public service obligation, PSO, levy. That is probably a discussion for another day. Regarding compensating for any increase in the carbon tax, we would say it is a case of "only if". We would ideally like to see measures implemented prior to that. If it is increased, however, the fuel allowance is not the most appropriate mechanism to do that.