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

The cost-of-living crisis is having a devastating impact on workers, families and businesses right across the country. Since 2021, energy prices have trebled. They have more than doubled since Russia invaded Ukraine last year. Average energy costs for consumers are now a staggering €4,300 per year. Everyone getting their gas and electricity bills in recent weeks will have been shocked by the amounts. As consumers suffer, energy companies are profiteering from this crisis and making what can only be described as obscene profits. At what point will the Taoiseach say enough is enough? These relentless price increases cannot continue. The toll they are taking on both families and businesses is disastrous. Nearly 270,000 customers were in arrears on their bills at the end of last year. Across the country, many families are choosing between heating their homes and feeding their families. The impact on businesses, particularly small and medium-sized businesses, has also been ruinous. Many otherwise viable businesses are facing the prospect of closure simply because they cannot afford to keep the light or heat on. Just €26 million out of a total budget of €1.2 billion has so far been drawn down from the temporary business energy support scheme, TBESS. This low take-up is evidence that the scheme is simply not fit for purpose. It is time the Government tried a new approach. A targeted energy price cap would cap the price of average energy usage for both businesses and households. This would mean that everyone would get their essential energy needs at a reasonable and affordable cost. Those who use in excess of that amount would pay more. Wealthier households would not disproportionately benefit and it would also incentivise energy conservation.

This is something that was introduced in Germany in December so we know it can be done. It would reduce prices and, crucially, provide security and certainty to households and businesses.

The Government introduced electricity credits at the start of this crisis because it said it was the quickest way to get supports to people. Now, more than a year later, the Government has had the time to design a better model of supports. A targeted price cap is the best way to support businesses and households, but it must be accompanied by a windfall tax to ensure energy companies cannot price gouge while the cap is in place. The Minister, Deputy Ryan, first promised a windfall tax in August and the EU signed off on one in September. Many other EU countries, including Germany and Spain, to name just two, have introduced a windfall tax. Why is the Government dithering?

Tomorrow, the Social Democrats will table a motion calling for targeted energy price caps. Will the Government support our motion and introduce them? When will we see the long-promised windfall tax finally introduced?

See this speech in context