The EU has urged Ireland and other member states to cut taxes on electricity, as the bloc grapples once again with surging prices. 

Unveiling a Citizens’ Energy Package, Commissioner for Energy and Housing Dan Jørgensen noted that Government levies account for 25% of an average household’s electricity bill. 

“The Commission supports EU countries in reducing such electricity taxes and levies for households,” he added.

On Newstalk Breakfast, Bonkers.ie spokesperson Darragh Cassidy predicted household bills will likely rise in the second half of the year. 

“Wholesale gas prices are up by over 50%; they are very, very volatile, it’s changing on a daily basis,” he said. 

“But if that were to be maintained, we could see bills go up by maybe 20 to 25%.” 

A pensioner keeping warm. Picture by: Alamy.com.

Mr Cassidy continued that while the Government is ‘not really to blame’ for the current spike in prices, the EU’s intervention in the debate is unusual. 

“I guess that just does show you the scale of the crisis,” he said. 

“A lot of consumers are still hurting after the last cost-of-living crisis we had - which was still kind of lingering on after the war in Ukraine.

“This is kind of round two after a very short period of time, but it does seem a little bit controversial. 

“I think the Government probably may not have welcomed it, because I think they were kind of trying to hide behind various EU rules, perhaps, and say that they would look at things.

“But now for the EU to come out and actually almost direct Governments to help people through lowering taxation is actually quite interesting.”

An electricity bill. Picture by: Sergio Monti / Alamy Stock Photo.

One possible means of cutting energy bills would be to suspend a looming rise in the carbon tax. 

Currently, the carbon tax is levied at €63.50 per tonne; however, that figure is due to rise to €71 in May. 

“I do think the Government might come under pressure to maybe look at that tax and maybe even just postpone the increase that's due on 1st May,” Mr Cassidy said. 

“And then it's due to increase by another €30 per tonne of CO2 over the next two or three budgets.”

Main image: Taoiseach Micheál Martin welcomes European Commission President Ursula von der Leyen to Government Buildings. Picture by: Alamy.com.