I move:
That Dáil Éireann:
notes that:
— Irish households continue to face severe financial strain in the face of high and rising electricity prices;
— the average monthly wholesale electricity prices in Ireland have increased by 9.6 per cent in August, 2026 alone, and are up by 77 per cent year-on-year;
— retail electricity prices in Ireland were already the highest in Europe, with households paying an average of €480 per year more than the European Union (EU) average;
— retail electricity prices continue to rise rapidly, with a succession of eight providers having announced price increases in recent weeks, some of these increases in the double digits;
— a 1,000-litre fill of home heating oil now costs approximately €1,600, up more than 60 per cent in just the past year alone;
— according to the Central Statistics Office, the cost of household energy in Ireland has risen by a whopping 70 per cent in the past five years; and
— 323,559 Irish households were in electricity arrears in June according to the Commission for Regulation of Utilities, amounting to around one in seven households;
further notes that:
— the Electricity Supply Board (ESB) recorded a pre-tax profit of €445.6 million for the first half of 2026, up from €351.6 million in the same period last year;
— it has recently been confirmed that the ESB Chief Executive Officer could see his salary hiked by a total of €161,000 by 2028, with a €90,000 increase to €410,000 per year having already been sanctioned;
— Energia recorded a pre-tax profit of €70 million for the second quarter of 2026, up 25 per cent year-on-year;
— Bord Gáis Energy recorded pre-tax profits of €50 million for the first six months of this year; and
— these kinds of bumper profits, and gold-plated salaries, are indicative of surging profits in the sector;
recognises that wholesale electricity prices are dictated largely by the cost of gas, meaning that energy companies that produce electricity from other sources, including renewables, can experience significant windfall gains when gas prices are high, as they are at present;
furthermore, notes that:
— the Government legislated in 2023, to introduce a temporary solidarity contribution and a cap on market revenues to clamp down on windfall gains in the energy sector;
— those measures, despite being in place for a relatively short period of time, raised a combined €456 million; and
— the Minister for Finance, has suggested that the State should wait for a joint EU approach to windfall taxes on the excess profits of energy companies, but Portugal has already moved ahead and introduced its own windfall tax; and
calls on the Government to:
— legislate to reintroduce both a market revenue cap and a temporary solidarity contribution, putting them on an independent statutory footing under Irish law that extends their operation for the period from 1st March, 2026 to 31st December, 2027; and
— use funds raised from taxing the windfall gains on energy companies to provide emergency relief to struggling individuals and families by immediately introducing a €400 energy credit, targeted at households earning up to €70,000.
For years, we have been told that the cost-of-living crisis, high energy bills and spiralling households costs are events beyond our control. First, it was the invasion of Ukraine and now it is the war with Iran. Every time there is an international crisis, Irish households are expected to absorb the shock. While we all know the Government did not cause those crises, neither did families all across this country. They did not cause the war in Ukraine or the war with Iran. Yet, time and again, they are asked to pay the price. Meanwhile, however, energy companies have continued to record substantial profits.
This motion is about more than energy and taxation policy; it is about protecting households that have been exposed to global shock after global shock while the Government has failed to insulate them. This motion is also about fairness because if there is anything Irish people know, it is how to be fair. They know when things are wrong. If households are expected to shoulder the cost of every international crisis, then energy companies cannot be allowed to pocket windfall gains while families fall further behind. We have the power to act to stop this happening, and we need to use that power. The Social Democrats are proposing that the Government protect households by introducing a windfall tax on energy companies' profits. This was done before at an EU level in 2022 following the outbreak of war in Ukraine and the energy price shocks that followed. It is crucial that we act again – this time at a national level - to protect families against the current energy price crisis.
It is clear the Minister has failed to protect families so far. Ireland has the highest household electricity prices in Europe. They are a massive €480 more per year than the EU average. According to the Central Statistics Office, the cost of household energy in Ireland has risen by 70% since 2021 and roughly one in seven households is in arrears on its electricity bills. Meanwhile, energy companies continue to record substantial profits. ESB Networks recorded a pre-tax profit of €445 million for the first half of this year, which is €100 million more compared with this time last year. The CEO of ESB Networks could see his salary increase by a total of €161,000 by 2028. Energia recorded a pre-tax profit of €70 million for the second quarter of 2026 alone, while Bord Gáis Energy recorded a pre-tax of profit of €50 million for the first six months of this year. All the while, customers are facing even more electricity price hikes ahead of this winter. That is the stark contrast at the heart of this debate.
I know the position of the Government is to wait for a whole-of-EU approach to this where all EU states work in tandem, but that is not going to happen. The Government wants us to wait while electricity prices go up, more families fall into arrears, energy companies continue to record enormous profits and executives receive salary increases worth more than what many workers earn in an entire year. However, the Government can no longer hide behind the skirts of the EU. Only yesterday, the EU Commissioner for energy, Dan Jørgensen, made it clear that there would be no EU-wide windfall tax and that countries need to do this on a national basis. This is possible and the EU will support countries to do it. In fact, Portugal has already gone ahead and done it. We need to follow suit urgently.
The Government can no longer use the EU as an excuse. Families are facing bills today, this month and this winter. That is why the Social Democrats are calling for action now, rather than at some undefined point in the future. We are proposing that excess windfall profits be taxed and that the proceeds be returned directly to households through a targeted €400 energy credit for low- and middle-income families. The previous solidarity clause contribution and market revenue cap that was put in place raised approximately €450 million, so the legislative mechanism and precedent exist, as does the need. The only thing missing is political will. When one in seven households is already in electricity arrears, the question is not whether we can afford to act but, rather, how much longer families can afford to wait. When families are struggling to keep the lights on while energy companies are recording bumper profits from circumstances entirely outside of their control, the Government cannot simply shrug its shoulders and say, "That is the market". It has a responsibility to intervene and protect households, and that is exactly what this motion seeks to do. If it was right to bring in an energy windfall tax in 2022, it is right to do so again now. We ask the Government to move on it.