We are truly in an energy crisis. Families face paying €400 more for their electricity and heat this winter, according to analysis carried out by Charlie Weston of the Irish Independent. It is quite obvious, and Deputy Kelly raised it earlier. The crisis deepened last week when Energia announced a third rise for 200,000 residential customers. The crisis must be addressed in the forthcoming budget, not only for households but for everybody who travels to work or school or for business and industry.

I am mainly concerned today about the cost of living for people trying to heat and light their homes. The budget must take cognisance of this. Last year's budget included a carbon increase for the next nine years, until 2030, that we cannot even discuss, debate or vote on here. Something has to happen to help these hard-pressed people. It is crucial to introduce measures that will ease the burden on families because of rising energy costs. Across Europe, governments are implementing energy tax cuts and subsidies to support their citizens. Thus far in Ireland, however, the Government has buried its head in the sand. Globally, gas prices are rising to record levels due to higher demand caused by the economic recovery and the Covid epidemic. Some 60% of the energy used in this country still comes from fossil fuels. Thus far this year, there have been 25 different electricity price hikes across a number of companies. Different electricity and gas prices increases have been announced by 14 different providers yet there has been absolutely no response. Where is the energy regulator and where are the Government and the Minister with responsibility for energy?

The impact will only become truly apparent with the cold weather, the long evenings and the lack of sunshine. We are lucky at the moment with the pleasant weather. Last week, Energia announced that electricity prices are to go up by almost 16% next month, with a rise of 18.5% in gas prices. The company's three electricity price increases this year will add an extra €450 to a household's costs. Energia has blamed surging costs in global energy markets. A number of energy providers in this market have announced four price increases this year, with larger providers expected to raise prices again. This means some families will face up to €500 extra just for energy alone, to keep the lights on and keep warm. Daragh Cassidy of price comparison website Bonkers.ie said that various price announcements would mean an average increase of €400 in energy bills this winter.

It is truly shocking. The Tánaiste acknowledged this and said some time ago that the Government knew inflation was coming, but how is it going to deal with it? Efforts must be made in the budget for people on social welfare, old-age pensioners, carers and all households that are suffering from fuel poverty, which they will be as they are pushed into this. The Government must take swift action. Price increases of this magnitude and frequency are totally unsustainable. It is creeping up. We can see it when we pass by the pumps and we see the price of energy. Something has to happen. The regulator must be asked or someone should prod him to wake up. This cannot be allowed.

I thank the Deputy. He is absolutely right. We have all seen it in the past couple of weeks, with the prices ticking up at the forecourts and going up every other day. We see it in the cost of home heating oil. As I mentioned earlier, it was €450 to fill a tank this time last year and it is closer to €700 now. We see it, of course, in the rising price of electricity.

We also all understand in this House that when it comes to fuel prices, we, as a nation, are price takers.

It is governed by the international price of a barrel of oil, gas or coal, and we are price-takers in that regard. What we can do is provide a welfare package in the budget helping those on fixed incomes, take action on the fuel allowance, provide for pay increases where they can be afforded - it is important that they happen - and also provide a tax package to make sure people retain those pay increases and do not lose most of them in USC, income tax and PRSI.

In terms of regulation, of course the regulator has a role to play but it cannot reduce the price of oil on the international markets or the price of gas coming from Russia. If those prices go up, prices go up here. That shows the long-term challenge we face in moving away from oil and gas to renewable fuels, the price of which can be much more steady, or at least we expect it will be.

As I mentioned, gas prices have now been rising steadily since March 2021 for a variety of international and geopolitical reasons and are currently unreasonably high, putting upward pressure on wholesale electricity prices. This is not only affecting Ireland; it is affecting other EU member states. It will be discussed at this week's meeting of European energy ministers in Slovenia. The Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, is there at present.

It should be emphasised, however, that international wholesale energy prices are not expected to stay at this high level indefinitely. Mindful of this, the Government provides extensive supports for households in terms of energy costs via welfare schemes. For example, there are specific schemes aimed at those at risk of energy poverty, including the household benefits package and the fuel allowance. A review of the implementation of the strategy to combat energy poverty will be completed this year. Alleviating energy poverty will be a key consideration for the national retrofit framework, which will also be published later this year.

The living alone allowance was increased in budget 2021. This is a very important allowance helping people who are living alone who often have to bear, on their own, the cost of heating an entire house. Ministers are considering the possibility of a further increase in the budget. When it comes to the carbon tax, it is important to bear in mind that the proceeds of any increase in the carbon tax will be ring-fenced for climate action, to protect those most exposed to higher fuel and energy costs, to support a just transition for displaced workers and to invest in climate action.

Someone needs to expose the farce that is going on with the ring-fencing of carbon tax money. It is not happening. The Sustainable Energy Authority of Ireland, SEAI, has a waiting list of two and a half years.

In Spain, electricity taxes are being cut temporarily and windfall grants for energy are being supported. Italy has injected €1.2 billion into its energy system to reduce bills. In Greece, the government is planning to offer energy subsidies to the majority of households and the French Government is considering extending energy grants to households. Astonishingly, in Ireland, the Department for the Environment, Climate and Communications has failed to outline any plans. This is shocking. The VAT rate must be cut in the budget, as it was for hospitality, from 13.5% to 5% at most. We must deal with this now. There is no point in saying what might happen or live, horse, and you will get grass. Hauliers, agricultural contractors, those using public transport, ordinary people going to work and people who propose to work from home and must heat their houses for longer and use energy are in the crisis now. We have time to deal with it in advance of the budget.

The Rural Independent Group has put forward proposals for a budget package. We must deal with this crisis. The Tánaiste said it will not last. It has lasted long enough and is happening now. There are incremental increases in prices and elderly people, widows and people who are ill are frozen in their homes. It is not good enough. We must deal with this now.

I thank the Deputy. We would be genuinely happy to consider any proposals the Rural Independent Group has for the forthcoming budget. To be clear, these high energy prices will last, unfortunately. We do not know for how long but it could be six months or longer and that is during the winter period when energy demand is at its highest.

In relation to energy efficiency, which the Deputy mentioned, the budget for the SEAI's residential and community retrofit programmes was increased to more than €109 million in 2021 from only €47 million the year before. I acknowledge there is a waiting list but the budget has more than doubled. That will help us get a lot more done.