According to Donohoe, budget support for energy bills will “focus on what we can do in 2022.”

An EU proposal to cap windfall revenues from energy producers “could have benefits” for Ireland, the finance minister said.

e said the government would “consider” the measures but said it was “difficult for us to try to counter them with a revenue figure”.

He said Ireland’s position will also take into account our links with the UK energy market.

The European Commission yesterday proposed peak power cuts, caps on excess revenue from renewables and oil and gas companies, government credit lines for utilities, and a cap on the price of Russian gas imports.

“We need to assess how the proposal put forward by the Commission fits the specific characteristics of our energy market here in Ireland,” Paschal Donohoe told reporters on Thursday.

“We think there are ways that that would be beneficial for us.

“Despite this measure, we have to see whether we need to take any other steps.”

Governments across the EU, including Spain and Germany, have rushed to levy unexpected taxes on companies as energy costs soared in the wake of Russia’s invasion of Ukraine.

Mr Donohoe said the budget, brought forward to September 27, would help people with energy bills and “focus on what we can do in 2022”.

He said the government heard people’s fears about the cost of living crisis “loud and clear”.

“I guess it’s really difficult for the people of Ireland to come into a world where we see war and where the cost of living is rising so much after a tiring battle with Covid.

“There’s a really growing concern about what 2022 will bring, but what the coming years will bring, and my message is that we will help.

“We will help in a way that can make a difference. We also want to help in such a way that there are no further challenges and difficulties in the coming year.”

Mr Donohoe said the country is “now in an environment where inflation is high”.

Price increases slowed to 8.7 percent in August compared to August 2021, the Central Statistics Office said on Thursday, as gasoline and diesel costs eased.

Inflation hit 9.1 percent in July, the highest rate in 38 years.

However, prices for housing, water, electricity, gas and other fuels rose 20.3 percent in August compared to the same month last year, while transportation costs rose 14.8 percent.

Meanwhile, the European Central Bank hiked interest rates by 0.75 percent on Thursday, at the high end of what markets had been expecting.

Prior to that decision, Mr Donohoe said it was “another change, another cost for many, on top of already mounting bills”. According to Donohoe, budget support for energy bills will “focus on what we can do in 2022.”

Fry Electronics Team

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