Leo Varadkar promises help with winter energy bills

Leo Varadkar has said it is “pretty obvious” that people will need support for their winter energy bills.

Speaking to reporters after a Cabinet meeting, Mr Varadkar said energy prices are expected to fall, but added: “They won’t fall enough or fast enough between now and next winter for us to say that there is no longer a case for support.”

The Taoiseach said details of the support will come in the Budget and the measures could be funded from the proceeds of a windfall tax on energy companies.

He said: “The easy option, of course, is the energy credits – you can just take it off the bill, it applies to everyone. But as we did previously, there was a targeted element too recognising that poorer households might need more.”

Mr Varadkar said there was also a desire to do more on energy efficiency and retrofitting.

He said: “The basic principle is that there will be help for households and businesses with energy costs, it will be announced in the Budget. It’s being done because we don’t believe energy prices will have fallen fast enough by then.”

Mr Varadkar told reporters it was a Budget priority to introduce measures to help people with the cost-of-living crisis.

On Tuesday, Cabinet agreed the text of a second phase of legislation in relation to windfall profits made by energy companies.

He said this price cap or levy on companies – mainly wind generators – that made bumper profits last year would raise somewhere between 80 million and 100 million euro.

“We can then spend [the levy] to help people with their costs – whether it’s through energy credits or through help with things like solar panels for installation is not decided yet.”