Electricity costs may climb by between 4% and 9% over the summer months, the Minister for Energy has indicated.
Darragh O’Brien said the outlook for pricing remains “highly volatile” because of international pressures, reports RTE.
During an appearance on RTÉ’s This Week, he noted that Ireland has experienced a notable rise in fuel costs and warned that electricity or gas prices could increase between “May, June, July”, reports RTE.
When questioned about comments from Minister for Enterprise Peter Burke suggesting energy prices could rise by “30% upwards”, Mr O’Brien said he was not disputing those remarks, but pointed out that any increases could depend on an energy supplier’s “hedging arrangements”, reports RTE.
“On electricity, we are not looking at increases in that sphere. It will be single-digit increases, but it again depends on the providers, but we are prepared for that,” he said.
Mr O’Brien stated that gas prices might rise beyond 9% but would “not up to 30%”, reports RTE.
He added that the Government must remain “flexible and nimble” in how it addresses the crisis.
Mr O’Brien said he backed retrofitting grants as a way to reduce household energy expenses, reports RTE.
When asked whether energy credits could feature in the October Budget, the minister said he “is not ruling anything out at the moment”.
“I want to be clear on this, we only just brought in additional measures. And the €750 million total package that we brought in is one of the most significant in all of Europe and I think people see that,” he said, reports RTE.
He said the plan is to reintroduce the energy levy in the Budget scheduled for October.
Mr O’Brien explained that the carbon tax was paused because the Government acknowledged the “price pressures people, families and businesses are under”, reports RTE.
He also stressed that there is “no rolling back” on climate initiatives.
Mr O’Brien has asked the Competition and Consumer Protection Commission to monitor fuel price changes linked to the US and Israeli conflict with Iran, reports RTE.
In correspondence sent this week to CCPC chair Brian McHugh, Mr O’Brien urged the commission to “give consideration to enhanced mechanisms to track retail fuel prices during crisis”.
The minister remarked that “a sharp increase in global price of oil and refined products” has resulted in “heightened public concern on transparency in pricing”, reports RTE.
Earlier this month, the CCPC found that the recent surge in fuel costs was due to “significant increases in international wholesale costs” rather than price gouging.
However, it also noted that it could not exclude the possibility that “individual companies” may have gained, reports RTE.
In his letter, Mr O’Brien said he is “deeply conscious of the distressing impact and pressure which the sharp rise in fuel prices has created for Irish households and businesses.”
He said his department “has established and enhanced our internal and cross-governmental structures in order to monitor supply of oil and price”, reports RTE.
The minister added: “While I recognise the market-driven nature of these costs, it is imperative to ensure that Irish consumers are not facing unfair competition or unjustified price increases,” reports RTE.
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