Oireachtas Joint and Select Committees

Wednesday, 17 November 2021

Committee on Budgetary Oversight

Inflation: Discussion (Resumed)

Dr. Niall Farrell:

Sure. A lot of our energy, in terms of electricity generation and heating, is sourced from gas. Exposure to international gas prices is a function of what the price is and how much gas is used. At the moment we use quite an amount. To reduce that exposure, accelerating renewables and the environmental transition is perhaps the greatest long-term solution. Regardless of any way to shield people from these prices, if we are still dependent on gas, we will still face this issue. The renewables transition is perhaps the long-term solution in reducing our exposure to fluctuations in gas prices. When it comes to households and carbon taxes, Dr. Doorley is probably more familiar with this, but I suggest thinking about it in terms of a combination of policies - not only with regard to carbon tax but also with regard to compensation in the form of changes to the welfare system that may help the vulnerable households the Deputy discussed.