Energy companies must pass on savings to customers

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Energy companies must pass on savings to their customers after wholesale electricity prices were dramatically reduced in the last year, a Galway senator has said.

Senator Seán Kyne said the latest CSO figures show wholesale electricity prices decreased by over 40% in the 12 months to April 2023, and by 13.5% when April and March 2023 are compared.

Senator Kyne said that this substantial saving must be passed on to customers, as energy companies were quick to increase prices when their own costs increased.

The Fine Gael senator said that we are not seeing the same urgency in passing on savings to customers as energy prices come down.

“As we move into the warmer months, customers are starting to see smaller bills thanks to less usage, but that shouldn’t be a smokescreen for energy companies to hide behind with continued overcharging.

“The Government has taken several steps to help ease the burden of spiralling electricity prices on hard-pressed households.

“Energy credits of €600 have been made available to every household to help them with their electricity bills and we have reduced VAT on electricity and gas to 9% – their lowest rate ever.”

Senator Kyne said that this week, Cabinet approved the extension of the Temporary Business Energy Support Scheme for small businesses until the end of July.

A windfall tax is also being imposed on the profits of the energy companies.

“We will say to these companies, in a very practical way, that if they are going to continue to profiteer on the back of Irish people, then we are going to tax them for it,” he said.