Middle East Conflict Highlights Ireland’s Continued Vulnerability to Fossil Fuel Price Shocks

Friends of the Earth Ireland has warned that escalating conflict in the Middle East further exposes Irish households to even higher energy costs and increasing energy poverty due to continued reliance on imported fossil fuels, particularly gas. It underscores the urgent need for the Government to produce a plan to protect households from global price shocks.

Global oil and gas markets have already reacted to the escalation, raising concerns that sustained volatility could increase heating, electricity and transport costs in the months ahead.

Many households are still living with the effects of the energy crisis that started in 2022, with energy arrears now at record levels - leaving little capacity to absorb any further price increases.

Clare O’Connor, Programme Coordinator for Heat, at Friends of the Earth Ireland said: 

“Ireland does not need to import directly from the region to feel the effects of this crisis. Energy is globally priced, and when supply is disrupted, Irish households are exposed.

We’ve already been here before following Russia’s invasion of Ukraine and the ensuing energy price crisis. The Government cannot continue responding to each shock with temporary fixes. The Government committed to publishing an Energy Affordability Action Plan by December 2025. During global crises like these, the absence of a clear long-term framework becomes clear.

Friends of the Earth is calling on the Government to:

• Convene the Energy Affordability Taskforce immediately to set out targeted protections should wholesale prices remain elevated.
• Publish the Energy Affordability Action Plan, which was due in December 2025, without further delay.
• Finalise Ireland’s Social Climate Plan, originally due in June 2025,  to unlock EU funding to protect lower-income households from high energy costs.
• Accelerate retrofitting and renewable heating for oil-dependent and low-income households to reduce exposure to volatile fossil fuel markets.
• Pause and undertake a review of proposed legislation which would result in further fossil fuel dependency, in particular those relating to a state-owned LNG terminal and private wires for data centres.

Ms O’Connor added:

“If prices rise, support must be targeted at households already struggling with high heating and electricity costs. When people cut back on heat to manage their bills it can have serious consequences for health - particularly for older people, disabled people and those with long-term medical needs.

If we want people to switch away from imported fossil fuels and move towards energy independence, retrofitting and switching to heat pumps must be affordable and accessible for ordinary families.”

Notes:

• CRU arrears data from December 2025 shows energy arrears at their highest level on record, with 14% of electricity customers and 26% of gas customers in arrears. The average electricity arrears balance is now 10% higher than in December 2024. 

• The National Energy Affordability Taskforce (NEAT) in its Terms of Reference adopted in June 2025, committed to publishing a National Energy Affordability Action Plan in December 2025. 

• Ireland has failed to meet the June 2025 deadline to submit its Social Climate Plan to the European Commission. The Social Climate Plan (covering 2026–2032) is meant to use the EU's Social Climate Fund to help vulnerable households and micro-enterprises manage increased costs for buildings and transport. Ireland can access up to €663 million of this fund.

• Ireland has the lowest share of renewable energy in heating in the EU (7.9%), leaving households particularly exposed to fossil fuel price volatility