We the undersigned call on the Government to introduce immediate budgetary measures to alleviate the rising energy poverty crisis in Ireland. Specifically, we ask that VAT on electricity, Gas, and home heating oil be reduced to 5% with immediate effect, for an initial period of one year.

On Friday, October 3rd, the ESB announced a price increase for electricity of 9.3%, and a gas price increase of 7%. This followed increases of 9% for electricity and 8% for Gas in August.

As the global energy crisis of 2021 continues to spread, further price increases cannot be ruled out.

While these price increases have been devastating news for many Irish families – already struggling to make ends meet – they have been good news for the exchequer. The VAT rate is charged on the total of an electricity or Gas bill. This means that when prices rise, the amount of VAT rises as well. The state is profiting, in effect, from the pain being applied to Irish households and families.

Ireland’s VAT rate on energy is already more than twice that charged in the United Kingdom and Northern Ireland, where the rate is just 5%. The state has, in its power, the ability to cut the rate of VAT to this rate, and provide families and households with a welcome 8.5% reduction in the tax rate paid on their bills.

When the hospitality industry in Ireland faced a crisis, the state stepped in with a special 9% VAT rate to help struggling businesses. At the time, this tax cut was described as vital and welcome by the industry.

If the state can help the hospitality industry, it can – and should – also help households.

This is a relatively low cost measure that can and will go a long way to alleviating the worry and stress of households in Ireland who fear that they will be unable to light or heat their homes in the coming winter.

It is a common sense, easy, and fast measure, which can be implemented from midnight on budget day. Further, when energy prices stabilise and return to a normal level, the cut can be unwound.

At a time when Irish families are struggling, this is an obvious, and simple measure. As elected, independent representatives of the Irish people, we urge the Government to take this action.

Signed: