“Nothing is out of the question yet” – says Simon Coveney about budget measures to cope with rising energy costs

Secretary of State Simon Coveney said the possibility of introducing a partial cap on energy bills in the 2023 budget to help with rising costs could not be ruled out.

Households are lining up for three rebates of €200 or more on their electricity bills until next spring, with proposals being considered by the government.

Mr Coveney said one-off measures such as energy credits will be an important part of the solution ahead of the September 27 budget.

“Certainly the Tax Advisory Board will strongly recommend that we do not move into the area of ​​a cap unless we know how much that will cost,” he told RTÉ’s Morning Ireland.

“Even so, I think nothing is impossible just yet and the Government, both Michael McGrath and Pascal Donohoe, and their teams are currently working around the clock to get this right.

“I don’t think you can rule out both, but energy credits will certainly be part of the solution, whether a partial energy cap will be part of the solution remains to be seen.

The Chair of the Tax Advisory Council said the government faces a very “difficult task” in Budget 2023 as it “needs to strike a balance between supporting budgets and the economy without fueling higher inflation”.

Sebastian Barnes will be speaking at the Dublin Economics Workshop tonight.

“One way to achieve that balance is to target support more towards lower-income households, potentially those in rural areas or older households who will be much more affected by higher fuel prices,” Mr Barnes said.

“In terms of alignment, it’s really about action, like around the welfare system.

“One of the big issues will be increasing welfare and household pension rates, meaning a sustained increase in spending would be required to compensate these homes for higher energy bills.

“I think temporary measures also play a role. One of the big things is that there is actually a lot of uncertainty about what the energy process is going to be like this winter and I think some temporary measures make sense in that regard.”

Mr Barnes said offering energy credit is a “sound” approach as there are “many different versions of caps and it’s a very complicated issue”.

He said he “hopes” the government is “thinking very hard” about ways to use energy credit properly.

“I think the kind of approach that we’ve seen in other countries of just guaranteeing that energy prices don’t go above a certain level is very risky in terms of public finances because it’s basically a blank check if energy prices will rise much higher.” he said.

“But I think just saying today that you’re going to cap them at a certain level when you have no idea what prices are going to be is a big risk the government shouldn’t take.”

https://www.independent.ie/news/nothing-has-been-ruled-out-yet-says-simon-coveney-on-budget-measures-to-deal-with-soaring-energy-costs-41994069.html “Nothing is out of the question yet” – says Simon Coveney about budget measures to cope with rising energy costs

Fry Electronics Team

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