Minister for Finance Paschal Donohoe has said that the Government is doing all it can about energy prices, but that it cannot cover all of the extra costs being faced by people and businesses this year.
“I absolutely appreciate that the higher costs that many are facing at the moment are going to be really difficult,” he told Newstalk Breakfast.
“I appreciate that, on top of everything else that we have to deal with — the rising prices, the bills that are going up — just adds to the challenge that lots face at the moment.”
The Government expressed “strong concern” at the move by Bord Gáis Energy to increase its gas and electricity prices by 39 per cent and 27 per cent respectively.
Blaming high global wholesale energy costs and market volatility for the increases, the company said uncertainty and spiking prices were “expected to continue for some time”.
Bord Gáis Energy said the increases would add about €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill. However, Daragh Cassidy of price comparison and switching website bonkers.ie said the average increase would be more like €390.
The latest increase comes after the company imposed two separate price increases last year which saw the annual cost of domestic energy for its customers climbing by in excess of €500.
Mr Donohoe said he accepted that the changes made by the Government with regard to taxation and the energy rebate would not cover all the costs facing families and businesses.
It was important to emphasise that the Government could not insulate the economy and businesses, or “even out” bills from all of the changes that were happening, many because of the war in Ukraine. These were matters beyond the influence and control of the Government.
Anything the Government could do, they are doing, he added.
“That which we can influence, in terms of bringing the cost down through the changes that we are making, we are doing. I accept it doesn’t cover all of the cost, but with all of the different things our country is having to deal with at the moment, it’s important we also have the money to make progress on those.”
Minimising costs
It comes as the chairperson of the Commission for Energy Regulation, Aoife MacEvilly, has said that the body will look at every option to minimise energy cost increases for customers.
The Commission cannot regulate prices, she told RTÉ radio’s Morning Ireland, but they were looking at ways to protect customers in arrears from disconnection.
Some people were in real difficulty because of the rise in energy prices, she said. The Commission would look at ways to enhance protections, stop disconnections and help people agree payment plans with energy providers.
Price caps had not worked in the UK and would not work because they could not protect against increases in the wholesale cost of gas on international markets, she added.
Ms MacEvilly said that the Commission would look at “every opportunity” to protect customers. She encouraged people to read their bills carefully to see if there were steps that could be taken to avoid price increases such as utilising lower evening and weekend rates.
Using energy in different ways could reduce bills, she said.
