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.

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.”