The prospect of electricity credits of the kind introduced the last time fuel costs soared has been downplayed with a junior minister saying, “we’re not in that space”.
Minister of State for Enterprise Alan Dillon made the remarks as he also defended the €250 million package aimed at easing the impact of rising energy prices for households and businesses, which the Opposition has criticised as not going far enough.
The cost-of-living measures to respond to rising fuel prices caused by the Iran war include temporary excise reductions for petrol and diesel in addition to a four-week extension for fuel allowance payments for 470,000 lower-income households.
The package did not include plans for electricity credits similar to those brought in for all households at a cost to the exchequer running into the billions amid the energy price rises caused by Russia’s invasion of Ukraine in 2022.
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Dillon described the package announced as a “significant initial response” that includes targeted and time-bound measures.
Speaking on RTÉ’s The Week in Politics, he added: “We’re being very honest with the people, no government can cover all increases in costs, but what we have done, we’ve stepped in to soften the impact for those who most need it.”
He also said: “The situation itself is evolving ... we need to adapt to and become nimble in regards to further needs if the situation worsens.”
Sinn Féin TD Darren O’Rourke argued that supports announced by the Government are “half measures”, saying excise on petrol and diesel should have been reduced more and claiming the Coalition did “absolutely nothing” for 750,000 households dependent on home heating oil.
Dillon responded, saying it is “astonishing” that Sinn Féin voted against the Government’s plans for excise cuts in the Dáil last week, that the measure is “providing immediate relief to many householders”.
Labour Party TD Marie Sherlock said there has been a cost-of-living crisis “for a considerable period of time” even before the war broke out. She cited almost 500,000 households in arrears on electricity and gas bills in December and increases in food prices in recent years.
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She said the measures announced by the Government last week “do not go far enough”.
Sherlock said the Labour Party believes that there should have been an energy tax credit to every household that is earning under €80,000 “to make sure that that actual direct relief with regards to their heating and electricity bills is actually there”. She also called for a reduction in public transport costs and more working from home.
On whether the Government will have to bring in energy credits in the autumn, Dillon said: “We’re not in that space currently. We are monitoring supply. We’re monitoring costs.”
