The Government should use money raised from a windfall tax on energy companies to invest in retrofitting, the Social Democrats have said. 

Across the world, energy companies are recording huge profits as energy prices skyrocket and the UN Secretary General has attacked oil companies for their “grotesque greed”. 

It is a sentiment that Social Democrats leader Róisín Shortall agrees with: 

“It is actually obscene that so many energy companies are making huge profits,” Deputy Shortall told Newstalk. 

“That shouldn’t be allowed to continue.

“If energy companies are making huge profits as a result of the Russian invasion of Ukraine and other reasons, well then there needs to be a windfall tax to claw back some of that.” 

Roisin Shortall. Photograph: Leah Farrell / RollingNews.ie

She continued: 

“I think there’s certainly an argument for [a windfall] being a long-term tax measure,” she continued. 

“But certainly in the short and medium-term at a time when inflation is running so high and there needs to be support provided for Government and a windfall tax would provide those receipts for Government to enable them to invest in measures such as retrofitting.” 

'A lot of challenges ahead'

Yesterday Taoiseach Micheál Martin said that the €5 billion surplus in the public finances would be used to help tackle the cost of living crisis: 

“We have a lot of challenges ahead,” he conceded. 

“But I do think the buoyant figures will give us an opportunity in the budget to take pressure off people.” 

Tánaiste Leo Varadkar has previously raised concerns that a windfall tax could “weaken the capacity of state-owned companies to invest in renewables and the grid”.

Windmills (wind turbines)on the Windfarm at Carnsore Point in County Wexford. 9/5/2005 Photo Photocall Ireland

However, An Taoiseach said that such a measure was currently under consideration: 

“We will give examination to the issue of a windfall tax,” he confirmed. 

“In the context of state companies like the ESB, we already take a dividend from the [company]. 

“On the other hand, we do want significant investment in renewables into the future. 

“But that said, there are significant profits being made all round, so we will examine that in the context of the budget.”

Main image: A hand counting expenses of an electricity bill on smartphone calculator. Picture by: Sergio Monti / Alamy Stock Photo