Soaring heating bills and hikes in prices from energy suppliers could see Galwegians shelling out an extra €400 next year for heating costs.
This is the view of Labour Galway City West councillor, Niall McNelis, who said a “winter of discontent” is in store, unless the Government intervenes in the crisis.
The former mayor was speaking following weekend reports that the Government is working on a package to address soaring winter heating bills. He called on the Government to provide clarity on its plans. He said any new measures must include additional fuel allowance payments; Carbon Credits; and the 30 per cent tax relief, announced in Budget, for remote workers to be backdated for 2021.
Extraordinary measures
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Electricity cost inflation is running at 20.5 per cent, while home heating oil costs have grown by 45.7 per cent in the 12 months to September. There is also the prospect of further gas and electricity price hikes of between 15 to 22 per cent due to take effect this month.
“The cost of heating homes is rising and will continue to rise this winter. We cannot see anyone choose between heating the house or feeding their family,” said Cllr McNelis. “The European Commission has generally given sanction for governments to take extraordinary measures such as this, and there is a case to be made for it now.”
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Tax relief
Labour has also called for a temporary reduction in the VAT rate that applies to energy and utility bills through the winter period. In 2020, an extra four weeks of fuel allowance were paid. The party is calling on the Government to provide for that again.
Cllr McNelis said that if the Government is planning to use the PSO levy to reduce bills, or a direct financial payment to households as was reported, “more information should be provided about what kind of measures it is proposing”.
With Government advice now encouraging as many people to work from home as possible, Labour is also reiterating its calls to backdate the 30 per cent tax relief announced in the Budget for remote workers for 2021.
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As it currently stands, the 30 per cent relief will only become available from January 2022. “This is not fair given the current trajectory of Covid cases,” said Cllr McNelis. “Those who are working from home should be able to heat their homes without fearing insurmountable energy bills.”
Cllr McNelis also called on the Government to guarantee that increased energy costs will not result in disconnections. “That would only compound matters,” he said. “We must focus on ensuring those most vulnerable to energy disconnections are not left in the dark.”
