GAS FRIGHT
Soaring prices out of Govt’s control claims Taoiseach
MICHEAL Martin has said that soaring gas prices are out of the Government’s control.
The Taoiseach was speaking after Flogas announced more crippling price hikes on gas and electricity.
Households are going to be hit with increases of 17% for electric bills and 23% for gas bills.
It is the company’s third increase this year and will mean some of its 25,000 customers will have seen their bills double over the last two years.
The average electric bill will increase by €350 and gas bills will rise by almost €400 a year.
Mr Martin was speaking from New York city where he was attending the United Nations General Assembly this week.
The Fianna Fail leader said: “In terms of Flogas, again, the future pricing is out of our control in terms of what is happening in terms of the wholesale markets.
“And as I’ve said in the Dail repeatedly, the cost now per therm compared to what the cost of what it would have been two or three years ago is dramatic, up to nine or 10 times more expensive now.
“What we have to do, what the European Union is doing, is working on the market to see if we can decouple gas from renewables – it’s complex.
“And also looking at the windfall gains that energy companies have made so that that can come back to the Exchequer in terms of using it to alleviate pressures.
“But the fundamental approach we’re taking now is to alleviate the pressures on households, on families and on businesses as well and to try and protect jobs.
“That’s the key agenda.” Flogas said the decision is due to the “continuing and unprecedented increases” in wholesale gas prices and the associated increases in wholesale costs.
While there will be unit rate increases, daily standing charges for electricity and gas supply will not be affected.
Sean O’loughlin, general manager at Flogas said: “We will support affected customers through our customer service team as much as possible and have a range of options, including payment plans, budget pay and prepayment meters.
“We would ask any Flogas customer who is facing financial pressure around their energy bills to contact us.”
Meanwhile, Mr Martin said he wants to scrap VAT on newspapers to help the vital industry stay afloat.
The Taoiseach said he is “positively disposed” towards getting rid of the tax that is crippling so many media outlets, especially local papers, every week.
He added the issue is “on the table” for discussion ahead of next week’s Budget where a decision on such a tax measure would have to be announced.