Energy company profits and security
Deputy O’Rourke asks whether record profits at ESB and other energy firms are excessive and should be treated as windfall gains. The Taoiseach says ESB is State-owned, needs profits for investment and debt, and energy security remains the key concern.
Energy providers are recording record profits at a time of pandemic and war and when families are being driven into poverty. Energia, SSE Airtricity and the ESB are three examples. It is reported ESB will report record profits of €679 million for 2021, up 10% on 2020. To give some perspective, the Government's cost-of-living package was €505 million.
The European Commission is very clear and it has spelt out how governments can, and should, assess and tackle excessive crisis-related windfall profits. Does the Government believe these profits at ESB and elsewhere are excessive? How is the matter being assessed? Is the Government considering introducing a windfall tax?
Comment on this
The first point is that ESB is a State company and is owned by the people of Ireland. Second, it is making very significant investment in projects now and for the future that will need to be financed by borrowing, and the debt already accumulated by ESB is quite significant. It needs profits to enable it to meet debt obligations and to ensure its capital expansion plans in future can be realised. One of the most important matters for us will be energy security. The question of the amount that can be returned on a dividend increase, for example, which is under consideration, will not dramatically impact the €500 million or €300 million package we have just announced. That must come from general Exchequer resources. I understand people are looking everywhere to see millions of euro here and there but we must keep our heads and focus on the energy security issue.
