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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Energy prices and windfall tax

Summary

Deputy Bruton asked whether falling wholesale energy prices are being passed on fairly, whether the CRU is policing hedging, and whether further measures will be taken. The Minister said the Government is watching prices closely and wants wholesale reductions passed through as quickly as possible, alongside existing supports.

Given that wholesale energy prices are down quite sharply, can we be assured that energy users are being treated fairly? I have three specific questions in that regard. I welcome the 75% windfall tax, but can we expect additional measures for energy users on foot of that?

Does the Commission for Regulation of Utilities, CRU, police the hedging policies of different energy companies to ensure that there is not price gouging so that when they say they have to wait before cutting prices, it is on a valid basis? Finally, with the renewable generation sector now earning very high profits, can it make a contribution to reducing the strain on energy users at this time? This would also win the sector brownie points as it seeks to develop this infrastructure for the future.

Comment on this

That was a lot of questions. I am not sure how much time I have to respond to them.

Comment on this

One minute.

Comment on this

Maybe 17 minutes. As Members know, I am quite interested in the energy debates. These are serious questions. Obviously, the Government is watching closely where energy prices are at now versus international wholesale prices. We see petrol and diesel prices at the pump, for example, falling to their lowest level in a number of years, which is a good thing, and likewise in regard to home heating oil and gas into people's homes. There is always a delay in passing on reduced wholesale prices but we will make sure that delay is as short as possible. In the meantime, we have a strong support package for businesses under the temporary business energy support scheme for businesses, which has been extended. The support has been increased in regard to the percentage increase that the State will now pay for. It may be extended again beyond May for another two months without the need for primary legislation. We are doing a lot in this space. We have said that the 75% windfall tax on extraordinary profits made on very high energy prices will effectively be recycled back into the system, recognising the pressures that both households and business are under.

Comment on this