16th Sep 2026 16:47
(Alliance News) - Ireland's taoiseach has rejected calls for a windfall tax on energy companies as a way to reduce spiralling fuel costs.
Micheal Martin said there is "no evidence" it would reduce prices, but added it would be kept under review.
Social Democrats deputy leader Cian O'Callaghan said the profits of energy companies are "booming", and called for a windfall tax on excess profits.
O'Callaghan said: "Why is it that Irish households are expected to shoulder the entire burden of these skyrocketing costs, especially when the profits of energy companies are booming.
"They have never been healthier.
"Just yesterday, the ESB announced its profits for the first six months of the year. They're up nearly 100 million euro.
"Today, we learned that its CEO is in line for a salary boost of a staggering EUR161,000, an increase of 51%.
"Energy companies are making enormous profits, while pensioners go cold.
"Instead of allowing this blatant and scandalous profiteering, you could introduce a windfall tax on their excess profits, you could take a stand, tell energy companies that the burden of paying for these costs will not be borne by Irish households.
"That the people of this country, who are already paying the highest electricity prices in Europe, will not be bled dry.
"A windfall tax would push energy companies into reducing prices by threatening to take their entire excess profits. This would directly help households that are really struggling.
Martin agreed with O'Callaghan's assertion that it is "immoral" to exploit the energy crisis.
"Absolutely immoral for any part of the supply chain, be it wholesaler or retailer, anywhere, that would exploit the crisis internationally to extract more from people."
However, he added that there is no evidence that a windfall tax would reduce energy prices.
"We did it in the last crisis; it didn't reduce," Martin added.
"However, its merit is in bringing some revenue back into the government in terms of any windfall gains that were made.
"It does not have wide prevalence in respect of who in this country we could hit.
"We're not blessed with massive oil energy companies as such, but also we have issues around refining and so on, which we have to be careful about, frankly, in terms of the supply side.
"It's easy to come up with simplistic sort of things. And I accept we did a windfall tax last time. I think it was 200 plus revenue came in.
"That didn't bring down prices, but at least it gave the government some revenue. We're keeping that under review."
By Cate McCurry, Press Association
source: PA
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