Is a windfall tax on energy company profits now needed?

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As energy prices soar, energy majors - as well as utility providers - have been reporting substantial profits, while householders and businesses take more pain. Should energy companies be forced to pay a windfall tax on their profits to fund cost-of-living measures in the budget?

A useful - if rather dispiriting - exercise is to look at a gas or electricity bill from the summer of 2020 and compare it to the most recent bill.It looks like there's more pain to come with global gas prices having trebled since June alone, and they had already been soaring in advance of that.

Simply put, when commodity prices go up, it feeds through to the bottom line of oil and gas producers. Centrica reported that operating profits at Bord Gáis were up 74% in the first half of this year to £33 million. "In one sense, there shouldn't be any increase in profits because they're having to buy the gas and turn it into domestic and industrial use," Tony Foley, Emeritus Associate Professor of Economics at DCU points out."If energy company profits are going up, it's not as a result of any great improvement in efficiency. It's because of what's happening to prices," he said.

Wind Energy Ireland points out that they are returning money to consumers. As well as the PSO levy refund, many of the wind farms are owned by state companies which generate funds for the exchequer. Politically, pressure is coming to bear on the Government here to do something to at least address the perception that energy companies are profiteering on the backs of struggling households and businesses.

"In theory, it sounds great, but there are no easy solutions" Daragh Cassidy, Head of Communications with bonkers.ie told RTE's Today with Clarie Byrne. After all, we have seen how long it has taken to find international agreement on a minimum corporation tax and it still hasn't been implemented.

 

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Green energy profits also ..

You couldn’t visit your grand parents for two years for fear of killing them with covid but now it’s ok for them to freeze to death in their homes 😡😡😡😡😡

Definitely

Government interference that causes energy price hikes demands more government interference to control prices. You couldn't make up this type of dumb if you tried. The classic crash the economy play book taking shape

Why are both prices and profits rising at the same time?

Let's point the finger at the parasites who have influence over almost every aspect of our lives, Blackrock and Vanguard, two of the biggest shareholders on the planet who control almost everything. There's a chance for some real journalism instead of mind games propaganda.

No the government should take VAT of Bill's it's not a luxury it's a matter of life or death in some cases.

In 2020 there was (rightly) a rush to protect the vulnerable age groups. Fuel poverty could kill people daily this winter, will it get daily bulletins in the same way? I doubt it.

🤨 Energy companies should pay Windfall Tax and there should be at least a six-month freeze on energy prices Leo and FG is AGAINST imposing a WINDFALL TAX on ENERGY COMPANIES This winter is going to be tough for the majority of us

The profits are obscene but they must pay investor dividends etc.BP made $3bn in Q2, 2021.The fine/repair at Blue Water Horizon was $60bn.We can't deny them profit & impose the biggest fines in history.Heads we win,tails you lose springs to mind! Can they apply windfall loss?

100% no question. Everyone should get 500 euros to pay for electricity. So many will be cold all winter. Others have huge debt and/or homeless

🤨 Energy companies should pay Windfall Tax and there should be at least a six-month freeze on energy prices Corrupt Leo and FG is AGAINST imposing a WINDFALL TAX on ENERGY COMPANIES This winter is going to be tough for the majority of us

Elon Musk said Nuclear energy is the best way we don't keep funding modern day Adolf Hitlers such as Vladamir.Ireland has been an anti nuclear energy country,but might be our best option unless the technology for wind and wave power improves dramatically

Energy companies have a moral duty to be good corporate citizens. It is immoral to take excess profits. Tax is too generic. Excess profit should be used to reduce consumer energy prices.

What about the windfall fuel taxes being gained by the government? Cut those including the green levies.

Yes.

Liquidate FF/FG/GRNs and then we'll come up with something else.

Yes.

Now listen up, Paddy, and then shut up: You will be poor. And you will like it. Because we are all supporting freedom for Ukrainian neo-nazis. Together ya see, we are bringing the concept of “multicultural Europe” to a whole new level. Nothing u can do about it, except pay up.

Of course they should but let's start asking why if they are making huge profits that we allow them to up the prices adding more profits and the price going to levels where we will be in fuel poverty for years to come, nip it at the source, stop letting them raise prices

Just cut the prices. All companies need to make a profit but profits that are extortionate to the detriment of the people that need that service to survive is on a different level of cruelty. How many people are going to suffer either physically or mentally as a result. Just cut.

That's a retorical question 😂😂😂😂

This is virtually all down to the insane sanctions policies againstRussia which are making the Russian economy wealthy (on target to be the largest European economy by 2030) being funded by the Wests high energy costs.Sane politicians would end the sanctions&get a peace deal done

Yes. Next question.

Time to work 60+ hrs a week and get the candles out lads... great government for the working class people 🙄👎 MichealMartinTD LeoVaradkar EamonRyan .bunch of absolute twits haven't a notion about the people they're supposed to serve!!!!

Everyone enjoying The Great Reset

Amazed rte published this, shame you did not publish anything about your masters propaganda that gave the go ahead for them to screw the public and the fact they want to screw the public more with the energy regulators plans.

Who are you asking? 🙄

Yes

Energy companies need to be nationalised!

No. They should be forced to reduce prices.

Including the green energy providers...For some mad reason government has linked wind energy to cost of fossil fuels...If fossil fuels go above €76 mw hr - wind price rises also to match...

Yes. Next question.

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