Universal electricity credits should be scrapped in favour of a means test based on income.
That's according to Social Democrats TD Jennifer Whitmore, who said holiday homes should be excluded from the Government scheme.
Three credits are to be given to every household in the country under plans announced in Budget 2023.
This will be paid in three instalments of €200 - with the first to be made before Christmas. Two more instalments will arrive in the new year, costing a total of €1.2 billion.
Deputy Whitmore said this universal approach means every home will get the credit, even those not being occupied.
She told Newstalk Breakfast this is a waste of money.
"It's not a targeted measure, so this means that every single account will receive this €600; and that will include 62,000 holiday homes," she said.
"It's a waste to taxpayers money, to be honest, because the individuals who are well enough off to afford not one home but two homes will get a double credit essentially.
"When you add it all up together, it actually amounts to €50 million over the course of the year that the Government will spend on electricity credit for holiday homes."
'A fairer way'
She said more should have been done to take these homes out of the schemes.
"It was a year ago that the Government first did this, so they should have used the last year to work out a more targeted way of actually allocating this money.
"They have completely wasted the last number of months in working out a fairer way of actually allocating this money."
Deputy Whitmore said she believes the credit should not be universal.
"It shouldn't be universal - and I've made the point repeatedly, actually, that those on higher incomes should not be getting this as well.
"The thing about this energy crisis is we don't know how long it's going to go on for; we don't know how much [it will] cost.
"It should have been targeted, absolutely... they should use the COVID like scheme, because that was incredibly successful, and that made cash transfers to people based on their income," she added.