Varadkar pledges support with energy bills into 2023

Tánaiste Leo Varadkar warned that this will not be a short-term crisis and so supports must reflect this. Picture: Gareth Chaney/ Collins Photos

Households will need to be supported with their energy bills on a rolling basis into next year as otherwise costs will hit €900 by January, the Fine Gael think-in was told yesterday.

The Tánaiste has publicly indicated that households are set to receive a third energy rebate to help with bills early next year on top of a payment before Christmas.

Leo Varadkar has also told party colleagues that the Government cannot spend all of the budget pot on once-off measures this year as it will need to ensure that it can afford to further assist households and businesses next year if costs continue to spiral.

At a private meeting on Friday, Fine Gael politicians were also warned that dual bills, which cost €326 last year, will rise to €675 by October and €900 in January if no Government intervention is taken.

Sources said that the party is concerned with "chasing" rising prices, but accept that many households will need help with energy bills.

Tànaiste Leo Varadkar indicated at the Fine Gael think-in in Kilkenny that homeowners will receive a third energy credit after Christmas, but some in his party worry that the Government will not be able to deploy large amounts of money on an ongoing basis.

Mr Varadkar said the Government has to be "dynamic" and must be prepared to change the response. He also warned that this will not be a short-term crisis and so supports must reflect this.

"It would seem to me to make no sense to help people with their bills before Christmas and then say, in the new year, in the spring, next winter if things are just as bad, 'well, now you're on your own'. That doesn't stand to reason for me.

One thing I'm very conscious of is that utility bills land every two months, so it won't be enough in my view just to help people before Christmas. 

"People will need help after Christmas as well. Perhaps throughout next year."

The comments come as EU energy ministers said that the European Union will next week draw up official proposals to cap the price countries pay for importing gas, reduce electricity use and redistribute profits made by energy companies in a bid to tackle skyrocketing prices.

Energy ministers at an emergency meeting in Brussels indicated they are in favour of the move, which would see a level of market intervention unprecedented in the European Union.

Ireland has traditionally been opposed to such market tinkering but that position appears to be changing.

Energy Minister Eamon Ryan said that he supported the progress made at the meeting. He stressed, however, that he would like to see this happening within a matter of weeks, not months.

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Speaking as part of declarations on the preparedness of EU countries at the European Commission Energy Ministers’ meeting, he said he will bring forward a paper next week that will set out options for strategic gas storage capacity from the grid in Ireland.

Speaking in Bray yesterday, Taoiseach Micheál Martin said that there will be a “broad sweep” of measures in the Budget that will reduce costs on people in terms of everyday public services, healthcare, public transport and further alleviate pressure in terms of electricity bills.

He said he is conscious of 2023 and the impact the energy crisis will have next year, suggesting there will be immediate support in the Budget but further financial assistance in the New Year.

The Taoiseach placed an emphasis on protecting jobs and businesses that have seen their bills “go through the roof” and need to protect their viability.

He said the Government will respond like it did to help businesses survive during the Covid-19 pandemic.