Government too reliant on emergency measures to tackle high energy costs, Social Democrats say

The coalition's lack of a 'clear strategy' to drive down the cost of energy has left it in a 'doom cycle'

The Social Democrats deputy leader Cian O’Callaghan called for the introduction of a targeted €400 energy credit for households on €70,000 or less.

The Government has left itself in a “doom cycle” due to its regular use of emergency measures to deal with high energy costs, the Social Democrats have said.

Deputy leader Cian O’Callaghan criticised the coalition for not having a “clear strategy” to drive down the cost of energy. He called for the introduction of a targeted €400 energy credit for households on €70,000 or less.

“Our main message is we want to be able to get out of a situation where these kinds of emergency measures are needed because if we invest in things like solar, then we won’t be in a situation where year after year, the Government is scrambling around looking for extra resources for emergency measures,” Mr O’Callaghan said.

“It’s a bit of a doom cycle almost.”

The proposed energy credit would cost approximately €450m and would be funded by tripling the bank levy, as well as introducing a new levy on data centres of €10 per megawatt hour of energy use.

The party’s climate spokesperson, Jennifer Whitmore, said energy shocks in the Irish markets are not a new phenomenon, first beginning after the war in Ukraine.

Ms Whitmore said the Government should look at policies to entice more people to use solar panels, citing her party's Solar for All policy. This includes measures to provide free solar panels for houses under the Warmer Homes Scheme, double the existing solar panel grant and permit the introduction of plug-in solar.

Ms Whitmore said the large surpluses the Government has run in recent years had made it lazy. “Rather than actually develop policies that are serious policies that are sustainable, that are financially prudent, they're just throwing money at problems as they arise,” Ms Whitmore said.

“We are just going from crisis to crisis.”

Ms Whitmore said the energy shocks experienced by the Irish public have been in place since the war in Ukraine began over four years ago.

“What we should be seeing tomorrow is not just a discussion on the extension of the fuel excise, but also we should be hearing from government about what their strategy is to drive down the cost of energy,” Ms Whitmore said.

She said the Government is only taking a reactive response through emergency measures, describing this as “very costly”. “What they also do not do is address the insecurity or the lack of resilience of the Irish economy to these kind of energy shocks,” Ms Whitmore said.

Mr O’Callaghan said the Government’s strategy appeared to be “hoping that Donald Trump in the next few months is somehow going to come to his senses”.

“That’s not going to happen,” he added.

• Tadgh McNally, political reporter