Taoiseach defends decision not to give energy credits, saying providers would 'factor them in' to prices

'Big energy companies are making bumper profits on the backs of working households, and hundreds of thousands of those already can't afford to pay their bills,' Mary Lou McDonald said in the Dáil.

Taoiseach Micheál Martin has defended the Government's decision not to introduce energy credits, arguing they would lead to energy companies “factoring” them into price increases.

A week on from the announcement of Budget 2026, the Government continues to face criticism in the Dáil over its decisions.

Sinn Féin leader Mary Lou McDonald said the “budget was written as though the cost-of-living crisis was a thing of the past”.

She argued “energy companies are brazenly ripping off customers in Ireland”. A report from the International Energy Agency (IEA) found retail prices in Ireland are three times higher than the wholesale price.

“That's price gouging, plain and simple. A rip off, plain and simple,” Ms McDonald said.

“A new report from the International Energy Agency reveals that these companies are refusing to pass on the drop in wholesale price to their customers.

“Big energy companies are making bumper profits on the backs of working households, and hundreds of thousands of those already can't afford to pay their bills.

Fianna Fáil and Fine Gael see this energy rip-off happening, but you stand back and do nothing.

“You refuse to take on the energy companies, and you vote down our proposals to get energy costs under control.”

Ms McDonald said energy credits did not feature in last week’s budget, accusing the Government of forgoing the credits, tax changes for workers, and cost-of-living packages in favour of “sweetheart tax breaks for developers, for big landlords and for the banks”.

“All your big election promises disappearing like snow off a ditch,” she added.

In response, Mr Martin said Budget 2026 focused on infrastructure and “those on the lowest incomes”.

He suggested Sinn Féin was calling for the Government to “keep bailing out” the energy companies and “underpinning the gouging”, questioning “where's the pressure on the companies” if the credits continued.

“If the companies think there's going to be [credits worth] €200, €500, €1,000 every year, that will get factored in without question,” he said.

Elsewhere, Social Democrats leader Holly Cairns asked when the new housing plan would be published, as she noted the Government was set to miss its housing targets again.

Mr Martin accused her of “empty rhetoric” but noted “housing supply is not where we wanted to be, but it's significantly way up on where it was five years ago on an annual basis”.