Redistributing energy profits to consumers will not cut bills in short term, says Ryan
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Irish households are unlikely to see any reduction in soaring energy costs in the short term even if EU ministers agree to redistribute excess profits from providers back to the consumer, the environment minister has said
Eamon Ryan made the comments ahead of an emergency summit of EU energy ministers in Brussels tomorrow, which will examine proposals designed to tackle the escalating crisis.
There is already dissension among major EU states as how to best navigate the crisis, with proposals such as energy-demand reduction targets for nations on the table, as well as limits on soaring company profits and redistribution back to consumers.
An energy reduction campaign for the likes of households and businesses is also likely to form part of the discussions.
European Commission president Ursula von der Leyen also caused raised eyebrows among ministers of member states by suggesting a price cap on Russian gas, which some fear could lead to the Kremlin shutting off gas in retaliation, leaving those countries which are most dependant exposed.
Ministers are not expected to approve any policies at the meeting but should make clear which options have the strongest support and will make it into final proposals.
Russian president Vladimir Putin said on Wednesday that Russia will stop supplying gas to Europe if it imposes a price cap.
Italy and Belgium want an EU price cap on all gas, but Germany and the Netherlands are wary of bloc-wide caps. They are among a group that has warned that hasty interventions in energy markets could have unexpected consequences.
Mr Ryan told the that the commission's proposal is "the right one" and that the Russian gas issue was not the biggest challenge.
"The Russian gas capping is not the most contentious in a way," he said. "I think the one that will probably divide more is how you get the excess profits back to the consumer, how you protect the bills.
"I think the approach the commission is proposing is the right one; it is very similar to the one we were already looking at."
Acknowledging that a unified front among ministers was unlikely, Mr Ryan said nevertheless that an agreement was crucial.
"It doesn’t require unanimity; we don’t have to get every single country on board. But the more that are on board, the better," he said. "The more that it is a Europe-wide approach, the better. That is key, to get as wide an agreement as possible.
"It’s going to be very difficult; with the recycling of the excess profits it is still going to be very high prices for the immediate future," he said.
An agreement in Brussels will help frame the measures the Government can take for the upcoming budget, according to Mr Ryan.
However, energy reduction will be vital for success in keeping bills down, he added.
"The measures we agree tomorrow will hopefully be very significant and we obviously have to follow that up with the budget, and an ongoing energy-efficiency campaign," he said.
"That doesn’t get all the attention because it is more medium-term, but it is one of the most significant ways."
- Additional reporting: Reuters