Energy costs cannot be easily reversed, says Eamon Ryan

The environment minister blamed Ireland's high energy prices on our reliance on fossil fuels, adding that prices are inflexible as companies "could purchase gas a year or 18 months in advance".

Changing to renewable energy is "the best way to bring the prices down immediately", said Environment Minister Eamon Ryan. Picture: Kyran O’Brien/DCU

Green Party leader Eamon Ryan has said that high energy costs cannot be “easily reversed”.

Mr Ryan said that a switch to renewable energy by way of retrofitting homes is “the best way” to bring down prices “immediately”, noting that energy companies “hedge forward”.

“They could purchase gas a year or 18 months in advance,” he said. 

So that's something you can't easily reverse."

The environment minister said energy prices are high because of Ireland’s reliance on fossil fuels, and labelled the State as a "price taker".

He said the biggest change to the prices currently faced by households would be a switch to renewable energy, adding that grants which allow for the retrofitting of homes would bring down prices by approximately 30%.

“That's the best way to bring the prices down immediately,” he said.

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When questioned if the Government will put pressure on energy companies to lower prices in the coming weeks, Mr Ryan said the Government has focused on what it has “control of”, such as reducing childcare, health, and public transport costs.

“That's where we focus because that we do have control of, and that's real,” he said before adding: “I think that's been the best measure to try and combat inflation.” 

He acknowledged that it is a “difficult time” due to high inflation which is also affecting grocery costs and the cost of services.

Mr Ryan said any measures introduced outside of the budgetary process would not allow for “the overall picture” and said that any further energy credits would be examined in the autumn.

He said the introduction of a credit for oil customers would be a “difficult one”.

Mr Ryan said there is “real concern” that over 160,000 gas customers were in arrears at the end of March and said that the Government is working closely with companies to ensure that customers receive quick engagement on difficulties in making payments.

“That's the first, most important message to anyone who is in difficulties — get in touch with the company and manage your way through this," he said.

“Government will come back in the autumn as we've committed to in the budget, looking at whatever further supports we can have to get people through a difficult time.”