Soaring energy costs - We still have our heads in the sand

SUSTAINABLE Energy Ireland (SEI) yesterday confirmed what we already know — we are spending an ever-greater proportion of our income on energy.

The average household spends €1,700 a year on energy, an increase of 70% since 1990. For many families, especially those committed to long-range commuting to Dublin from the dormitory towns all along the east coast, that figure will be even higher.

More than 145,000 households are experiencing fuel poverty, which, SEI defines as spending more than 10% of disposable income on energy. And, it seems, that no matter what we do, these figures will just rise and rise.

As you read this, petrol costs, in the old king’s terms, around €12 a gallon in parts of Britain. In today’s Irish terms that’s around €2.54 a litre; just over €1 a litre more than we pay here. And, because of the tanker drivers’ strike, you might not be able to get any fuel, even at those stellar prices. Some banks believe oil will pass $200 a barrel within a year. Gazprom, the Russian oil and gas giant, has predicted the $250 barrel.

However, there may be a crumb of comfort.

Some analysts argue prices have reached their current pitch because of speculation. There may be a degree of comfort in this but it would be foolish not to recognise that we must change our ways dramatically to confront energy costs and, possibly, shortages.

Yesterday, New Zealand’s government announced that it will ban traditional light bulb sales from October of next year to cut greenhouse gas emissions and save up to half-a-billion US dollars a year in energy costs.

In the face of these figures it is hard not to feel sympathy for businesses and workers who are dependent on petrol or diesel, but at the same time it is difficult to see what can be done to alleviate their situation.

The Government will be reluctant to reduce excise rates on fuels at a time when the general tax take is falling so far short of expectations. If they cut fuel taxes they will have to cut services elsewhere. This is not the kind of proposal that easily finds favour with politicians.

There is also an argument that by increasing taxes on fuels we will curb demand and keep the money at home rather than export it to oil producers.

We still import nearly 90% of our energy and pay great lip service to confronting the issue but, as each day passes, the feeling that we are not doing anything remotely enough gets stronger and stronger.