'Wartime situation' having 'an enormous impact on energy prices'

The Taoiseach's comments come as SSE Airtricity became the latest energy supplier to hike prices, with electricity bills set to rise 24% on average, gas bills by 32.3% and dual fuel bills by 27.5%.

The Government is not planning another package of financial measures to alleviate the cost of living crisis, the Irish Examiner understands.

Although “all options” are being discussed, it is not envisaged that the Government will be looking at “money in your pocket” measures, according to senior government sources.

Officials are looking at “demand and management” options to attempt to soften the impact of rising inflation on Irish households, but the public should not expect a further credit or funding announcement like those previously made by government.

The Taoiseach said on Friday that the Government is working with European counterparts in a bid to tackle the energy issue but moved to dismiss reports that a new package of measures would be announced.

“What we're now looking at is a wartime situation, which is having an enormous impact on energy prices of that there is no doubt,” Micheál Martin said.

“We can’t deal with this on a week-to-week basis. We have to look at this over the medium term now, in terms of government's approach to this, and also with our European colleagues in terms of the entire energy market.

“It is a huge imposition on households. It's a huge imposition on business and input costs are rising, and it is having an effect on the economy in terms of rising inflation. 

“How we see the situation from now to the end of the year is the one issue and it is full of uncertainty, but it is creating huge challenges for households and for businesses.

Impact of war in Ukraine

The Taoiseach said that: “Government will obviously be working with all of the stakeholders in terms of navigating a way forward. We've already allocated €2bn since the budget in alleviating pressures. We have also looked at hauliers, in terms of farming and agriculture, in terms of giving supports, and that's how we intend to approach this. 

"But what we're witnessing now is the impact of this war in Ukraine, which has exacerbated very significantly the ongoing issues we were having already in terms of the prices of energy going up.

“We're worried about food security in Europe, which will be an issue, as will issues around certain commodities.” 

All government departments in the context of the war in Ukraine have been scenario planning in terms of potential impacts, the Taoiseach added.

Mr Martin said he received a communication from the President of the European Commission last night, to say that in the context of the energy issue, particularly the standoff in terms of the sanctions that the European Union has imposed on Russia, that “it will be a European wide response to that threat and that's the context in which we're going to respond to these issues more generally.

“Specifically in terms of our economy and our own society, we have to plan for all eventualities because we are in a wartime situation, there is no justification for this war,” he added.

The Taoiseach's comments come as SSE Airtricity became the latest energy supplier to hike prices, with electricity bills set to rise 24% on average, gas bills by 32.3% and dual fuel bills by 27.5%.

It will mean a price increase of around €670 for a typical dual fuel customer over the course of a year.

For just electricity customers, it’ll mean an extra €338 on their annual bill while gas customers will see a €333 price rise.