Taoiseach: Government will claw back energy firms' profits to give back to consumers

Mr Martin restated the Government’s intention to tackle windfall profits made by energy companies as part of the European directive. Photo: Damien Storan

The Government is to claw back profits made by energy companies through higher standing charges this winter, Taoiseach Micheál Martin has said.

Mr Martin also said that vulnerable people who get into difficulty in meeting their bills will not face being disconnected.

Speaking in New York ahead of his address to the United Nations General Assembly, Mr Martin said there can be no exploitation of people, especially vulnerable people, and the Government will tackle windfall profits made by the sector.

“In relation to standing charges, we will be examining that also. There is no room for energy companies to exploit this situation in any shape or form and I would be concerned by any increase in standing charges in terms of how they would impact the public,” he told reporters.

He said there needs to be really clear transparency around all of this and proper explanations and accountability around all of this by the energy companies to the public and to government on this issue.

He restated the Government’s intention to tackle windfall profits made by energy companies as part of the European directive, brought forward by EU Commission President Ursula von der Leyen.

“In terms of the increased revenues that energy companies are receiving because of the crisis, yes we will take measures in the context of the European framework in terms of a windfall gain. The State will procure some of that windfall gain and allocate that back to consumers and households,” he said.

He said people who are unable to pay, especially those with medical needs, should not fear being disconnected.

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“Also in terms of those who are vulnerable, the codes are there and the CRU have made it very clear that no one should be switched off because of difficulties. Especially those with medical requirements should have no fears about being disconnected at any time during the crisis,” he said.

On missing his meeting last night with US President Joe Biden, Mr Martin said there was never any formal plan to meet while here in New York.

“There was never going to be a formal meeting this week but last night there was a reception that was hosted by President Biden. Unfortunately, we couldn’t make that but I did meet him in London at the funeral and we meet at a number of international gatherings. Today’s hectic, we’ll see how things transpire,” he said.

Asked if he was likely to meet Mr Biden today, Mr Martin said it was unlikely. “I don’t anticipate that today, I mean there’s a hectic schedule of meetings all round with all of the leaders,” he said.

NI Protocol

Mr Martin spoke with some encouragement about the possibility of making progress on the Northern Ireland protocol with the new British Prime Minister Liz Truss.

“I do believe there is goodwill all round at European level. I had engagements with president von der Leyen at the weekend. We are all tic-tacing on these issues,” he said.

“Our general view would be the sooner we get into a process of negotiations then we will have a better idea as to likelihood of a positive outcome,” he added.

“I am satisfied that there is a generally positive mood to see can we get this issue resolved because the backdrop is the geopolitical global instability. Britain, the EU and Ireland, as a member of the EU, want a constructive harmonious relationship into the future. One of the ways we can do that is to deal with the protocol once and for all,” he added.

He said he had a good initial meeting with the British prime minister last Monday morning and met quite a number of members of the British cabinet at the various receptions at the time of Queen Elizabeth’s funeral.

“There is a general mood and desire to see can we get this resolved. But having the mood and the desire is different to getting into a process and to get a negotiated resolution,” he added.