Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I thank the Deputy. At the outset I acknowledge that electricity prices have gone up a lot in the past year or so. What generally happens is wholesale prices go up first on the international markets. After that companies put up their retail prices for businesses and customers. After the prices on the wholesale markets come down, the reductions at retail level, to customers, businesses and homeowners come after that. What we see is the prices on the wholesale markets going up first, retail prices not going up immediately and not going up by as much. However, as wholesale prices fall, retail prices fall after that because companies buy ahead. They do not just buy on the spot market today and sell that electricity to customers. They buy ahead, six months or a year in advance, and the price they pay is passed on to consumers. That is how the electricity market works.

The Deputy asked what the Government is doing about it and whether the Government is acting. It is acting in five ways. We have had energy credits of €600 for every household to help with electricity bills. We reduced VAT to 9%, which is the lowest VAT rate ever for electricity and gas. We have taken a special dividend from ESB. About €300 million in a dividend has been taken from that State company which we can use to help homes and businesses over the period ahead. Just today at Cabinet we approved the extension of the temporary business energy support scheme, TBESS, for small businesses until the end of July to help them with their energy costs. The Minister, Deputy Coveney, gave approval to help businesses that use kerosene, particularly those in rural areas that have not had anything yet because they use kerosene rather than gas.

The other thing that is happening is a windfall tax being imposed on the profits of the energy companies. The legislation is being developed at the moment and will apply from September. When it comes to difficult cases and hardship cases, which happen and the Deputy mentioned one earlier, exceptional needs payments are available from the Department of Social Protection. There are hardship funds in place to avoid such scenarios from happening.

In regard to food, the Minister, Deputy Coveney, and the Minister of State, Deputy Richmond, are taking the lead on this. The powers that exist lie with the Consumer and Competition Protection Commission, CCPC. The Minister, Deputy Coveney, is meeting with the CCPC in the next few days. The Minister of State, Deputy Richmond, has already met with the retail sectors. The powers are there with the CCPC to carry out an examination to see whether price fixing or anti-competitive behaviour are under way. The Government is very much engaged on those issues in particular.

Tá a fhios agam go bhfuil an costas maireachtála an-ard. Tá an costas leictreachais an-ard freisin. Tuigim go bhfuil teaghlaigh, go leor daoine agus gnóthaí faoi bhrú ach tá tacaíocht ar fáil agus tá an Rialtas ag obair maidir leis sin.

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