Length of war in Ukraine will have impact on Irish energy costs - ministers

Simon Coveney said the price of energy was going to be unpredictable in the months ahead because of the war in Ukraine

Minister for Foreign Affairs Simon Coveney and Minister for the Environment, Climate and Communications and Minister for Transport Eamon Ryan have said that Irish energy costs will continue to be impacted as long as Russia's war in Ukraine continues.

Speaking to Newstalk Breakfast, Mr Coveney said the price of energy was going to be unpredictable in the months ahead because of the war in Ukraine. The Government had put in place a €1bn package to help people to try to reduce the “dramatic” rise in bills.

But the Government was not able to “make things normal” in the context of price volatility, he said. The focus will be on “what we can do” not on what the leader of the opposition was calling for, he replied when asked about criticism of the Government’s efforts by Sinn Féin leader Mary Lou McDonald.

At the core of the Government’s efforts will be measures to help people pay their bills and to provide assistance “in difficult times,” added Mr Coveney.

Meanwhile, the environment minister said that while the Government will have to do more, it cannot completely “fix” the situation because of international factors, he told RTÉ radio’s Morning Ireland.

Mr Ryan said that the €230 credit was just one measure from a €2bn package to help families and businesses.

He said the first priority was to assist those most at risk of fuel poverty, there will be further universal measures such as reducing the PSO on energy bills to zero.

Some measures would not be immediate and would take time, he warned. They would require changes to the social welfare system. “It will take time to get it right” to ensure fundamental long term improvements.

The Government was committed to helping the public, but some plans will require planning, he said.

The Government would be looking at further supports and would introduce a suite of measures, including time of day use which could mean immediate savings.

Grants of up to 80% for between 500,000 to 700,000 homes for better insulation could mean savings of up to 25% in bills and there needed to be a focus on that now, he said.

'Shorter showers and less driving to cut energy bills'

Environment Minister Eamon Ryan said that changing energy habits would also support Ukraine

Being more energy-efficient is the most effective way to hurt Vladimir Putin's regime and bring down household bills, Environment Minister Eamon Ryan has suggested.

The Government is working on finalising a cost-of-living package to help households with spiralling costs; however, this is unlikely to contain any new financial supports in the immediate term and instead the focus will be on "behaviour-led" measures.

It is understood Mr Ryan will bring forward proposals for a public awareness campaign outlining a range of easy-to-do measures to help people to reduce their use of energy and save money immediately. This would include advice around simple changes such as taking shorter showers, turning thermostats down by one degree, and only boiling enough water as required and not a full kettle. 

An emphasis will also be placed on using appliances at off-peak times to save money.

Mr Ryan said that changing energy habits would also support Ukraine, stating: "The one front that the Russian government particularly uses as one of the weapons in this war is in relation to the energy markets and how they have a grip of those."

He said we must "do everything that we can" to reduce that threat.

No matter what it was important that Europe stay united on the issue of sanctions, he said. “Sanctions will put an end to this war.

“The more united, the stronger we are.” It was uncertain what could happen in the coming weeks, there could be a serious escalation, he cautioned. The fact that Europe was spending €1bn per day on Russian fossil fuels “makes the case for stronger sanctions.”

A spokesperson for the minister added: "Energy efficiency is the quickest, smartest, cheapest, and most effective way to respond to the current energy supply and cost squeeze.

"It is also the most effective thing we can all to do now to support the Ukrainians. Every kilowatt of energy we use is more money for Mr Putin to continue to wage the brutal and illegal war in Ukraine."

Mr Ryan confirmed that the bundle of short-, medium-, and longer-term measures will be ready to bring to Cabinet next Tuesday week. 

However, any reduction in the VAT rate will not be included, as it is unlikely that the EU Commission will have come back with proposals at that stage.