Richard O'Donoghue: Why electricity costs are soaring?
Richard O'Donoghue critiques recent government energy policy, arguing decisions on network pricing, solar grants and planning have left households paying far more for electricity. He sets out why capped solar grants, a 120 euro per kilowatt hour network charge and delayed offshore plans have harmed consumers.
Key points and pricing: Richard O'Donoghue explains that while production can cost about 50 euros per kilowatt hour, network rules allow charges up to 120 euros per kilowatt hour. He argues this regulatory setting benefits electricity suppliers and leaves many households and rural customers exposed to inflated bills.
Impact on consumers: O'Donoghue describes how limited competition in rural areas - often with only ESB available - prevents households from switching to lower rates, while targeted supports and VAT changes amount to giveaways to suppliers rather than relief for families.
Limits on household solar: He criticises the government's solar grant cap at 6 kilowatt hours per roof when larger capacity is feasible, saying infrastructure constraints were used to justify blocking households from powering their own homes and feeding electricity back to the grid.
Offshore planning and policy choices: O'Donoghue accuses the government, and specifically Eamon Ryan and the Green Party, of delaying DMAPs and offshore development for years, which he says prevented greater offshore capacity on the west coast and prolonged reliance on inland turbines.
Consequences and closing argument: He concludes that current measures give only token relief while suppliers reap exponential profits, and that policy choices have prioritised industry interests over household affordability and a cleaner, more distributed energy system.
Key points and pricing: Richard O'Donoghue explains that while production can cost about 50 euros per kilowatt hour, network rules allow charges up to 120 euros per kilowatt hour. He argues this regulatory setting benefits electricity suppliers and leaves many households and rural customers exposed to inflated bills.
Impact on consumers: O'Donoghue describes how limited competition in rural areas - often with only ESB available - prevents households from switching to lower rates, while targeted supports and VAT changes amount to giveaways to suppliers rather than relief for families.
Limits on household solar: He criticises the government's solar grant cap at 6 kilowatt hours per roof when larger capacity is feasible, saying infrastructure constraints were used to justify blocking households from powering their own homes and feeding electricity back to the grid.
Offshore planning and policy choices: O'Donoghue accuses the government, and specifically Eamon Ryan and the Green Party, of delaying DMAPs and offshore development for years, which he says prevented greater offshore capacity on the west coast and prolonged reliance on inland turbines.
Consequences and closing argument: He concludes that current measures give only token relief while suppliers reap exponential profits, and that policy choices have prioritised industry interests over household affordability and a cleaner, more distributed energy system.
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Transcript
I thank this motion and I will be supporting it. But no one has mentioned the elephant in the room. This government signed off that the networks in charge up to 120 per kilowatt hour. That guides you the price. It costs 50 euros per kilowatt hour to produce electricity but they'll now charge you up to 120 euros per kilowatt hour. You look at enough of the people that are in different areas, that they have gas and all of that, they can swap between different groups to get cheaper rates. You then go to rural areas, we're lucky to have ESB at times, but they've only got the one choice. And if something is not broken, they won't fix it, they won't swap in and out between different networks because they don't have the opportunity to do the same. You look at then, you brought out so-called targeted funding. So you're taking it back again on the VAT increases. So you're giving it on one hand, taking it back on the other. You then came out for solar panels, and I'm all for solar panels, but then you brought out a grant that you can only put up to 6 kilowatt hours of solar panels on your roof. When your roof space will take up to 20 kilowatt hours, you're only saying they can put on 6 kilowatt. Why Minister? Why is that? Because the infrastructure is not there to take the fluctuation on power. So they don't want you to be able to power your own house for free and send back electricity to the grid because the infrastructure is not there. So you limited the amount of solar panels, you limited the amount of grants, so people can actually get cheaper electricity. Some people come in at the end of the month and they're waiting for the bills to come in. And they don't know what price different things are going to come in at. So they're trying to make every chance that they can, turning off lights, turning off heating, trying to save as much as they can and do without themselves. So everything that you've done, you've only benefited the electricity suppliers. That's what you've done. They're making profits at exponential increases. And you were part of the government with Eamon Ryan and the Green Party that stopped the DMAPs coming out so we could do offshore in Ireland because you wanted to go on the east coast. But you wouldn't allow for the likes of fines in those areas. We could go on the west coast where the highest winds are there. He held it back for five years. He held the DMAPs to stop us doing offshore. And you're talking about environmentally friendly. So we could have actually produced power offshore and you would have had to have no wind turbines inland where there's health implications. That's what you've done. He held it up for six years. And you're now part of another government that you're now giving pittance back to the people saying we're looking after you. You're giving nothing.