The Government must introduce a windfall profit tax on energy companies in order to support households with the cost of energy during the upcoming winter, the Irish Congress of Trade Unions has said.
Six EU member states have asked that the topic of a windfall tax be discussed at the next EU Finance Ministers meeting, to be held in Dublin under the EU Presidency later in September.
Germany, Spain, Portugal, Italy, Poland and Austria wrote to the Irish Government requesting an EU-wide approach to windfall taxes be added to the agenda for the upcoming meeting, due to take place on September 18.
The Irish Government previously implemented an excess profits tax on energy providers following the outbreak of the Ukraine war in 2022, raising more than €260 million over 2 years. Despite the current spike in energy costs, it has so far ruled out the reintroduction of a windfall tax.
With the ongoing war in Iran and energy costs continuing to hit households, ICTU has said that the Government must now look to re-introduce a similar measure, which in turn can fund targeted supports for families facing fuel poverty.
To alleviate the current crisis, the Government should:
- Introduce new taxable energy credits: Replicate the relief measures used during previous energy spikes to directly lower household bills for those most affected.
- Provide transparent funding: Explicitly link the funding of energy credits, fossil fuel tax reductions, and Public Service Obligation (PSO) levy cuts to the direct recoupment of wartime windfall profits.
- Align with EU allies: Join the coalition of six EU nations demanding a unified framework to tax oil company refining and distribution margins.
Commenting, ICTU Campaigning and Advocacy Officer Paul Gavan said:
“Families and households will be fearing the worst going into this winter, with Donald Trump’s war in Iran continues to fuel sky-high energy bills. It is not right that energy companies are profiteering off the stress and worry facing many people.
“Through the EU Presidency Ireland has the opportunity to take a lead here, with the support of other member states, and show the EU stands with its citizens instead of big business profits.
“We know this can be done. In 2022, the Temporary Solidarity Contribution on windfall energy profits raised hundreds of millions to support people in energy poverty. Now is the time for a common approach across Europe, and demonstrate that people will not be left alone to face hardship while energy companies profit.”
