Medication and energy levies hit consumers

CONSUMERS face a double blow today with the introduction of new energy costs and medication levies.

Despite calls for certain exemptions and a delay in the Government-led charges, households will face the burden of the increased costs as they face into what is certain to be a tough budget in December.

Green Party Minister Eamon Ryan ruled out postponing the 4.9% environmental charge, which will be levied on homeowners and businesses from today.

The Public Services Obligation (PSO) levy, which is expected to raise €157 million a year, is designed to subsidise energy providers for sourcing clean power.

Some €78m of funds generated are expected to go towards subsidising peat-powered electricity while €43m will go towards wind power. The extra electricity charge is set to cost an extra €33 a year for ordinary households and €99 a year for small companies.

Speaking in Dublin, Mr Ryan said that cutting investment in renewable energies, including the PSO levy, was not an option.

“Any moratorium or change of strategy away from the development of wind power in my mind would be a fatal mistake,” he added.

Meanwhile, pharmacists have expressed concern over the introduction of the Government’s prescription levy which will also begin today. As revealed by the Irish Examiner this week, the homeless, psychiatric patients and residents in nursing homes, including the terminally ill, will have to pay the extra charges.

Under the new rules medical card holders, for the first time, will be charged 50 cent per item on their prescription. This will include drugs, medicine and medical appliances.

The maximum amount chargeable to a person or their family will be €10 a month under the new rules.

Charities and patient support groups have already voiced concern over vulnerable groups being subject to the charge and called for an exemption.

The Irish Pharmacy Union (IPU) joined the chorus of objections and said there had been a lack of an information campaign by the Government about the charges.

Union president Darragh O’Loughlin suggested the levy will cause hardship to many vulnerable patients and could prevent others from taking their medicines entirely.

“We would call on the Minister for Health and Children to exempt certain patient groups from paying the levy, including homeless patients, patients in sheltered accommodation and patients in nursing homes.”

Prescription levies had been abolished in other countries like Northern Ireland and Wales just as they were being introduced here, he added.