Government cannot sit on its hands as energy crisis cripples the country

At the end of the day the Government’s intervention in the fuel crisis that continues to grip the country was about as useful as a chocolate teapot.

The 15c cut in excise duty on diesel and 20c on petrol had a nominal effect. A flurry of activity on the forecourt billboards in the hours before and after Paschal Donohoe's token move only served to see fuel sitting somewhere around the €1.90 to €2.00 a litre mark. Madness.

It's a bamboozling figure for drivers, and especially rural families where often two cars are an absolute necessity. Car tax, insurance, NCT, wear and tear topped by sky-rocketing fuel costs are crippling people and in many cases forcing them into sacrificing activities and any travel that is not a necessity. And let's not forget the haulage and transport firms (See pages 18-19) at risk of grinding to a halt given the costs to keep their shows on the road.

And if people are trapped at home unable to take the family out for a spin, the vista is not much better. Home heating oil has surged in price. Tank fills (who will be getting them?) have more than doubled in price, the cost of keeping warm at home now involves, extra layers, hot drinks, keeping moving and the decision to turn the heating on every couple of hours? Not a great options for the vulnerable, infirm and elderly. Or for anyone else either.

And the good news just keeps on coming it seems...

Bord Gáis Energy has announced today that it is increasing its rates for both electricity and gas customers.

According to a statement from the company, the average electricity bill will go up by, wait for it, a staggering 27 per cent and the average gas bill will go up by 39 per cent.

The company is ending its 'winter price pledge' and the changes will take effect from 15 April.

The company said it was working with the Money Advice and Budgeting Service (MABS) and is also establishing an energy support fund to help customers who ‘experience difficulties in managing their bills.’ Great.

Bord Gáis Energy blamed the price rises on “...the persistence of high demand on gas worldwide, reduced supplies, low storage volumes, geo-political issues and late winter conditions.”

“As part of Centrica plc, and with decades of local experience, we will navigate through these unprecedented times with our customers,” Dave Kirwan, Managing Director with Bord Gáis Energy said in a statement.

“However, there have been continued increases in wholesale energy costs over the past two years, particularly in the past 12 months.

“This, together with the expectation that costs will remain both high and volatile for some time, means we are forced to increase our prices,” he said.

Unprecedented times indeed. Customers already to the pin of their collar with energy costs will be floored by the announcement of more double-digit rises and for many something somewhere will have to break.

Will disconnections be allowed to happen in this climate, will energy need to be rationed, will further measures be essential now for Government to consider and implement? On radio this morning the Minister Donohoe said oil and gas prices in Ireland would be kept under review by the Government, but that there were no further plans for additional measures until the next budget in October.

For many, Minister, that sort of non-action is just patently too little and steps taken then will come far too late.