Paul Gavan (Sinn Fein) | Oireachtas source

I move recommendation No. 18:

In page 123, between lines 32 and 33, to insert the following:

“Report on the VAT treatment of domestic energy bills 57.The Minister shall, within one month of the passing of this Act, prepare and lay before Dáil Éireann a report on the VAT treatment of domestic energy bills and options regarding the effective removal of VAT on domestic energy bills either through reduction or rebate, in the context of rising energy prices and their impact on low and middle-income households.

Winter is here and low and middle income households face an energy crisis in the coming months. There have been over 35 price hikes announced by energy suppliers since the start of the year. In the 12 months to October, energy prices increased by 25%. The price of electricity and gas increased by 16% and 23%, respectively. The cost of home heating oil, the main fuel source for home heating in 37% of homes, increased by a staggering 71%. These prices are expected to rise further. These households need a helping hand and they need it now.

Across Europe, governments have responded with a range of measures to help households. This Government has done nothing beyond a modest increase in the fuel allowance, which is out of reach for the majority of workers and families. In Spain, VAT on electricity bills was slashed by 11% until the end of the year. In the Czech Republic, VAT on gas and electricity has been reduced to zero until the end of the year. In Italy, Prime Minister Mario Draghi launched a package of €3.4 billion to protect households from the energy crisis in October, November and December. That included slashing VAT on gas by 17%, reducing gas charges at a cost of €480 million, cancelling electricity charges at a cost of €800 million and providing a discount on the price of electricity and gas for low-income households at a cost of €450 million. In contrast, this Government has done very little. Sinn Féin has repeatedly called on the Government to stretch every sinew to provide real and immediate relief to low and middle income householders who will struggle to light and heat their homes this winter.

On 13October, the European Commission published its toolbox for action and support to tackle rising energy prices. It is welcome that action is now being very reluctantly taken by the Government to help alleviate the massive increase in the cost of electricity. Sinn Féin has been raising this issue for months now and we have pushed the Government to act, but it should not have taken this long. People needed help this side of Christmas. The Government needs to tell us how it will ensure this support is extended to households using prepaid electricity meters. These households are among the most vulnerable to the skyrocketing cost of living. The action needed must extend beyond electricity as people are struggling with rising electricity, heating and fuel costs. There remains more to do, including extending the criteria for fuel allowance and the establishment of a discretionary utility debt fund for those who find themselves struggling with debt this winter season.