People Before Profit TD Paul Murphy has welcomed the government’s plan to cut the PSO levy as the cost of living crisis continues to deepen.
The TD for Dublin South West said that people were really feeling the impact of inflation and that measures, such as the promised cut to the PSO levy were a good thing.
He noted that the government should move to fund the cut by implementing a significant windfall tax on the profits of energy providers.
In a reply to a parliamentary question to Deputy Murphy, Minister Paschal Donohoe outlined that the government would be investigating the proposal for windfall tax measures on energy companies as he outlined the EU Commission has said that member states could consider such measures – on a temporary basis.
Deputy Murphy said: “The proposal to cut the PSO levy, which is a proposal that the government will look at in October, is welcome. People all over the country are now feeling the pinch of the cost of living crisis and effective measures need to be taken to reduce the burden on households. We also need to be extending fuel allowance and other supports for people, as well as tackling the profiteering by fuel and energy companies to bring prices down.
“The government should now move to apply a significant windfall tax – I would suggest 50% – on the profits of the energy companies who are applying extraordinarily high increases to people’s bills. These increases are not sustainable for people, and these companies, who have seen their profits shoot up in the last year, need to pay a windfall tax to help fund measures such as the PSO levy cut.”
The Minister for Finance has indicated, through a parliamentary question, that a windfall tax of 10%, on the profits of energy companies, could yield around €60 million.
