New energy levy criticised

The Government is being accused of having a deliberate policy of driving up energy costs.

The prices paid by consumers for energy supplies is set to increase with the introduction of a new levy to fund the cost of green energy.

The Commission for Energy Regulation has ordered energy suppliers, including the ESB, to impose the €30 annual charge. Businesses will meanwhile have to pay €99 per year.

The levy is supposed to fund the cost of generating green energy sources.

Fine Gael's Leo Varadkar said consumers can't take another levy - and the Government can and must scrap the charge.

"There does need to be some subsidy for alternative energy but maybe not the way it is done now," Deputy Varadkar said.

The planned levy was also criticised by Sinn Féin's Energy spokesperson Martin Ferris.

Deputy Ferris said that the decision to introduce a levy at a time of unprecedented hardship for households and businesses was ludicrous.

“This will punish already struggling families and will heap further pressure on small and medium businesses who have to deal with already crippling costs and a lack of credit," Deputy Ferris said.

“I would seriously question the need for this levy given that the ESB only recently reported profits of €500m.

"At the very least the government should delay its introduction. It makes absolutely no sense whatsoever and further highlights how clueless this government is when it comes to turning our economy around."

Various organisations including the Consumers Association of Ireland, the St Vincent De Paul and Age Action are also calling for the levy to be scrapped.

Regional President of the SVDP in Cork Brendan Dempsey said most families are already struggling and this will push them over the edge.

Age Action spokesman Gerard Scullymeanwhile said the levy will force many older people into fuel poverty.

“This levy coupled with the imposition of the carbon tax on domestic fuel will force many older people into fuel poverty," Mr Scully said.

"Any increase in either domestic heating fuel or electricity will mean those older people surviving on state pensions will find it increasingly difficult to maintain themselves with any sense of security or dignity."