Too 'crude of a method' - Taoiseach rules out energy price cap

Ottoline Spearman

The Taoiseach has ruled out a price cap on energy prices, saying it would be too "crude" of an approach.

An international report has revealed Ireland’s retail electricity prices are three times higher than the wholesale prices.

This is one of the highest gaps in the world, according to the International Energy Agency.

Speaking on Newstalk, Michéal Martin admitted electricity prices are expensive, but said price caps are not the solution: "I think a cap would be a very crude method of doing it. I think we do need to engage with the companies on this.

"The regulator is saying that there is no evidence of price gouging. We do know there are more deep-seated structural problems underpinning our market, and we have to deal with those."

Mr Martin previously said that he favours energy credits rather than a price cap to tackle rising energy costs, calling it “an effective way” to help the general population.

The Irish Examiner reported in September that Energia was the latest utility company to announce hikes, with electricity prices going up by 10.9 per cent and smart meter electricity prices by 12.1 per cent.

Other energy companies that have hiked their prices recently are Bord Gáis Energy, Pinergy, SSE Airtricity, and Flogas.