Companies must pass on falling energy prices to households, Government told
SVP research and policy officer Issy Petrie called on the Government and the regulator to set out short-, medium-, and long-term measures to mitigate the impact of 'extraordinary energy prices'. Picture: Niall Carson/PA
The Government has been told to put pressure on gas and electricity companies to pass on falling international energy prices to households, as a damning new report revealed 450,000 people had to go without heating their homes.
The Society of St Vincent de Paul (SVP) has called for urgent steps from the Government and the energy regulator to address the electricity and home heating crisis faced by thousands of struggling families.
It has emerged that Electric Ireland will pass on reductions in wholesale energy prices to business customers this month, but not households.
The company will reduce gas prices by 15% for small and medium-sized businesses while electricity prices will fall by 10%, but household prices will remain the same.
Senior Government ministers have expressed disquiet about the Electric Ireland approach but Green Party TD Neasa Hourigan said the Government must directly intervene to ensure companies pass on falling wholesale costs to the residential sector.
According to the SVP research, the number of people unable to adequately heat their homes has more than doubled to 377,000 while a further 453,000 went without any heating at all at some point in the last year.
Since spring 2021, the average electricity bill has more than doubled.
SVP research and policy officer Issy Petrie called on the Government and the regulator to set out short-, medium-, and long-term measures to mitigate the impact of “extraordinary energy prices”.
“As we speak, households are building up significant amounts of energy debt,” she said. “We had 1,200 requests for assistance every day in December.
“Prepay customers were finding themselves running out a few days after topping up. They were shocked at how little was left as previously that top-up would have seen them through the entire week.”
The Money Advice and Budgeting Service (Mabs) has revealed that 49% of clients reported going without food in the last six months to cover energy bills, while the Commission for Regulation of Utilities also said it is very concerned about continued high energy prices.
Barnardos national policy manager Stephen Moffatt said parents are terrified of huge bills coming through their door and have been switching to higher-cost prepayment meters, leaving them unable to afford to pay for "vital parts of childhood" for their kids.
Labour finance spokesperson Ged Nash slammed Electric Ireland, in particular, for not yet reducing prices for household customers.
“The figures in this SVP report are truly shocking,” said Mr Nash.
“Rising energy bills have doubled the number of homes in energy poverty at a time when wholesale energy prices are falling. This is intolerable."
Yesterday, the Dáíl heard a case of a woman who is "over 100 years old" receiving an electricity bill for almost €1,000.
Sinn Féin TD Johnny Guirke said the woman, from Trim, Co Meath, contacted him recently about her Electric Ireland bill and said she only uses a fridge, washing machine, immersion heater, lighting, and two electric heaters on timers and no central heating.
Taoiseach Leo Varadkar said he has had the same experience with some of his constituents and that many people are “really shocked” by utility bills that have landed in recent weeks.
"The next step is the introduction of a windfall tax so that we can take back some of the profits of the energy companies and give them back to people to help them with their bills,” he said.
