Government challenged to do more over rising energy bills

The Government has been challenged to do more to help people struggling with soaring energy bills in Ireland.

During leaders’ questions in the Dail, Sinn Fein president Mary Lou McDonald called on the Government to remove VAT on energy bills and excise duty on home heating oil.

Tanaiste Leo Varadkar responded by saying that the Government had already committed 1bn euros to helping to reduce energy bills and would see what further measures were affordable.

Last week Bord Gais Energy announced it was increasing its rates for both electricity and gas customers, with the average electricity bill set to go up by 27% and the average gas bill to rise by 39%.

Opposition leader Mrs McDonald said the rises would wipe out a planned Government credit payment before it arrived.

She said: “Workers and families have been hit by a barrage of energy hikes, more than 30 in the last year.

“There were many already struggling to keep up and they were left stunned by the scale of the latest increases.

“The Russian criminal invasion of the Ukraine has brought massive disruption and volatility to global energy markets.

“Everything that can be done, should be done, must be done to mitigate the impact and cut bills for hard-pressed households.”

She added: “People expect Government to respond with speed and urgency that matches the unprecedented difficulties that they now face, to intervene with measures that work, that will get energy bills down, that will keep money in people’s pockets.

“They need you to do this now, Tanaiste.

“I understand that Government can’t do everything but you can do more.

“I am asking that you do two things.

“Firstly, to engage the European Commission and to remove VAT on energy bills for at least three months.

“Second, that excise duty on home heating oil be removed.”

Mr Varadkar responded: “At the outset I want to acknowledge the fact that we are seeing an unprecedented increase in the cost of energy, not just in Ireland, but also around the world.

“That is really squeezing people, it is making bills very hard to pay.

“It is affecting business as well and it is affecting those on the lowest incomes in particular.

“The Government will do whatever we can to help people to ease the burden, but we can’t do everything.

“So far we have committed 1bn euros to help people with the cost of fuel and energy.

“That is really significant.

“Contrast that to Northern Ireland.

“Our response here has been much greater than the response in Northern Ireland.”

The Tanaiste added: “Of course the Government will give consideration to further actions that we can take to help people and help businesses with the bills, but we do need to be honest with people.

“We have already set aside 1bn euros to reduce the cost of energy.

“We have to see what else we can do beyond that which is affordable.”