Immediate and substantial action needed on energy prices - Harkin

Independent TD Marian Harkin is accusing the government of simply annoying people and is calling for swift and substantial action by the EU and the government to tackle the rapidly rising energy prices and electricity bills.

“Right now, all we are getting from government is a list of energy-saving tips. I acknowledge this is very important and will make a real difference, but it is putting the cart before the horse and simply annoying people,” she said, “the government needs to let people know how they will be supported specifically and in detail and, where necessary, protected as the energy prices continue to spiral out of control.”

The Sligo Leitrim TD wants the government to cap electricity prices using whatever mechanisms are at its disposal. “These must include adjusting downwards the state tax and excise take,” she suggested, “many people and many small business owners across all sections are living in fear of their next electricity bill and this must be comprehensively tackled in the next two weeks. Households and businesses need some certainty so they can begin to plan their budgets and expenditure for the next six to nine months, at least.”  

“As the government makes final preparations for budget 2023 and a special cost of living package, it is vital that families, small businesses, farmers, health care providers, those in education and social service provision will see the swift implementation of concrete support measures,” Ms Harkin said.

“An immediate and substantial windfall tax on energy companies must be put in place with all revenues ringfenced to target those who are most at risk of energy poverty,” she said. “It is both absurd and obscene that the operating profits of Bord Gáis Energy grew by 74% in the first half of this year while the ESB, Energia and SSE Airtricity will see their income from wind energy increase six-fold. Meanwhile, businesses will have to close, and families will be pushed into poverty by massive energy costs.”

Among other specific measures, Ms Harkin is calling for an increase in the fuel allowance and significant adjustments in the income eligibility levels. She also wants the scheme to be extended to all family carers. “There is an urgent need to do something about the income eligibility levels for the fuel allowance. At the best of times, these levels are too low, but in the current circumstances they make no sense and hundreds of thousands of people desperately need to see these levels substantially increased.

“As the eligibility levels stand, those on the minimum wage won't qualify for the fuel allowance, huge numbers of family carers won't qualify, low-income families won't qualify along with many small businesses, small farmers and small service providers. The lives and livelihoods of so many people will be decimated without this extra level of support,” Ms Harkin said.

At a national level she called on the government to put aside ideological considerations and consider, in the short term and for a limited time, utilizing all energy sources/suppliers.

“Minister Eamon Ryan also needs to ensure that heavy users of electricity such as data centres play their part in reducing usage and that no new data centres are allowed to start operation during the next few months unless they can supply their own renewable energy,” she said.

As EU energy ministers meet to draft an EU wide response the former MEP is calling on the EU to take clear and decisive steps, “At an EU level the price of electricity must be decoupled from the price of gas as this will give Member States greater flexibility in how they can respond to the current energy crisis at a national level. Furthermore, Member States must agree on very substantial and immediately enforceable windfall taxes on those energy companies who are profiting on the backs of the misery of ordinary people,” she said.