Taoiseach Leo Varadkar has indicated further energy supports could be on the way for customers when the windfall tax is introduced.
He has vowed to “put pressure” on companies to bring down their prices, stating that they must fall this year. Maarten Verwey, the European Commission’s director general for economic and financial affairs, warned that states must start to wind back energy support as it could have “serious consequences” as interest rates rise.
There is also fear that the supports could push up prices. Speaking in Washington, Mr Varadkar said the comments from the European Commission will not “change our plans”.
Read more: Number of Irish families unable to heat homes more than doubled in past year
The Taoiseach said: “Of course, we understand where the European Commission is coming from. We hear what the economists are saying that if you put money back into the economy and into society well then you might just push up inflation higher. We understand it’s always the way that if you use any medicine there’s going to be side effects but we have to look at things in the round.”
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