Energy bill hikes for small businesses like paying second rent, Dáil hears

2DH9EJR Cost of electricity: halogen bulb and twenty Euro notes

The Government has been accused of veering towards “a flawed approach” to tackling the energy crisis as TDs heard that small businesses have compared their electricity bill costs to paying a second rent.

Sinn Féin criticised the Government’s preference for energy credits rather than price caps to deal with spiralling electricity bills.

The main opposition party has been calling for energy bill prices to be capped at “pre-crisis” levels until February, which the Taoiseach indicated on Monday he was not in favour of over electricity credits.

Green Party leader and Minister for Transport and the Environment Eamon Ryan has said that people can expect an electricity credit before Christmas.

In the first round of Leaders’ Questions of the new Dáil term, Mary Lou McDonald said that the last energy credit, issued in April and worth €200 plus VAT, was not long-lasting enough.

“While energy credits are well and good, they do not provide certainty. They don’t protect people from a continuous barrage of hikes,” she said.

“In fact, when the Government introduced its initial energy credit, it was too slow.

It was wiped out by further price hikes before it even landed into people’s accounts. So, this is clearly a flawed approach.” 

Ms McDonald said that it would deliver certainty for people and that it “simply makes sense”.

Mr Martin requested from Ms McDonald a fully-costed proposal on the way Sinn Féin would tackle the energy crisis, calling her proposals “vague” and “one-dimensional”.

“The Government’s view is, for the time being, we want to get people through the winter to the end of March, not the end of February,” he said.

“We’ve got to do it using a range of measures, in terms of reducing electricity bills, yes, but also giving flexibility to the people in the form of payments that we give them.” 

He said this could include energy credits, the welfare system, cost reductions and investments in public services.

Ms McDonald replied that Sinn Féin’s proposals on price caps were similar to those introduced in France and Romania.

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She said: “The only blank cheque in question here, Taoiseach, is the one that you are asking families to give to energy companies.” 

Labour leader Ivana Bacik said that small business owners are reporting that paying for energy bills is like paying “a second rent”.

She said: “…We see energy bills increasing dramatically for so many struggling households and families. 

"Households facing the dreadful prospect of energy bills which could reach €6,000 per annum next year, and small businesses which are telling us that now their energy bills are as much as their rent.” 

The Taoiseach acknowledged that “it’s not fair that companies would make exorbitant profits on the back of a war, and on the back of the people, in terms of the exploitation of a crisis”.

Aontu TD Peadar Tóibín said that the response of the government to the cost-of-living crisis has been “stifling inertia”.

“Going by the rate of action of this government, the only thing that will remain warm this winter will be the government’s hands, from sitting on them all of this time,” Mr Tóibín added.