THE GOVERNMENT HAS been accused of normalising the fact that Ireland has the highest energy costs in the EU. 

During a debate on Sinn Féin’s Electricity Regulation (Amendment) Bill 2026, which seeks provide increased powers to the Commission for Regulation of Utilities (CRU) to monitor and regulate the energy market, TD Rose Conway-Walsh said deciding “not to end energy rip off is a political choice”.

“Government could choose to impose a windfall tax on the high watering profits of energy companies… We cannot continue pretending that Ireland having the highest energy costs in the EU is normal. It is not normal, and it is not fair. In fact, it is grossly unfair,” she said. 

Tánaiste and Finance Minister Simon Harris has signalled that the government is not in favour of a domestic windfall tax on energy companies making exceptional profits, and that it prefers a coordinated EU-wide approach. 

Harris said that Ireland taking individual action on taxing windfall profits could impact “investment, market behaviour, and energy supply”. 

Interim report on company profits 

The energy regulator said this week that energy providers are not making “excessive profit”, and high energy prices are instead driven by wholesale costs, pass-through charges and network investments.

An interim report from the Commission for the Regulation of Utilities (CRU) on the Irish electricity and gas markets, published this week, suggests that high energy prices aren’t caused by an issue with competition in the energy market.

Labour’s Sean Sherlock said the public are being asked to accept the prices they have to pay on trust alone. 

He said the bill has some issues, but does address a number of the key issues. 

“We need to ensure that what people are paying actually reflects what it costs a supplier,” he added. 

Sherlock said the CRU “should have the capacity, indeed the obligation, to rigorously scrutinise” gas prices.

“We know that there’s an active investigation being carried out at present by the CRU into price-gouging and failure of energy suppliers to pass on wholesale price reductions to consumers. The wholesale cost is down 72% from its peak in August 2022 but the price being paid by consumers remains stubbornly high,” he said. 

“If that investigation eventually finds that there has been price-gouging, what then? It can’t just be another report to add to the pile, and that be the end of the matter,” said Sherlock.

According the CRU’s interim report, “there’s nothing to see here. The market is functioning as it should. There’s nothing to worry about. And I just don’t understand how that makes any sense”, Social Democrat’s TD Jennifer Whitmore told the Dáil this evening.

She noted that the minister in his speech that he believes there needs to be a strengthening of the mandate of CRU.

“Now I would question exactly why he believes that their mandate should be strengthened. Because if on one hand, the mandate of the CRU needs to be strengthened, well then that would imply that any investigations into things like price-gouging are potentially not up to scratch,” said Whitmore.

She questioned if the CRU has enough teeth to deal with the energy companies. 

Government opposing legislation

Responding during the debate this evening, Energy Minister Darragh O’Brien said the government would be opposing the proposed legislation from Sinn Féin.

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He said the first phase of a comprehensive review of legislation underpinning the work of the CRU is already complete and this will inform any relevant changes to the mandate of the energy regulator. 

The minister said the CRU, under existing legislation, already has a requirement to monitor wholesale energy markets in electricity and gas, including for preventing market manipulation or insider trading.

He noted that the programme for the government does commit to prioritising a review and reform of the legislation underpinning the CRU, which he said is underway. 

O’Brien said resources have been sanctioned for additional staff and the forthcoming Electricity Market Design Directive will provide further consumer protection measures.

The National Energy Affordability Taskforce is preparing an Energy Affordability Action Plan in Q3 which will examine costs drivers in the energy sector and identify measures to enhance affordability of energy.

“But 20% of the gas that we use is generated through Corrib, the remainder of which is imported, and there are costs associated with that, unquestionably,” he said, stating that it is a driver of high energy costs.

He said the “original plan” was to have offshore renewables would be integrated into the system by 2030.

“That will not happen. I’m very honest with people. What we need to see is construction of that offshore wind resource, and to scale that up,” said O’Brien.