National Economic Dialogue hears call for an ‘Energy Budget’ as fossil fuel volatility exposes households to rising costs

As Government Ministers, social partners, industry and other stakeholders gather in Dublin Castle this morning (15 June 2026) for the National Economic Dialogue, Friends of the Earth is calling on Government to make Budget 2027 an ‘Energy Budget’. 

The environmental and social justice organisation says this Budget has to respond convincingly to the energy crisis. To stem the increasing tide of Irish people in energy poverty, the group is calling for targeted, structured supports for households most affected by high energy costs. 

Friends of the Earth also warns that Ireland’s continued reliance on fossil fuels is driving both unnecessary hardship for people and avoidable spending from the taxpayer’s purse. 

Recent analysis from the ESRI [1] shows that households experiencing energy poverty would need around €480 per year on average to exit energy poverty, at a total cost of roughly €370 million nationally. This compares with the more than €550-575 million spent on universal electricity credits in 2024, which the ESRI finds are significantly less efficient than targeted alternatives that could deliver the same impact at around 40% lower cost.

Against this backdrop, Friends of the Earth is urging Government to introduce an ‘Energy Budget’ for 2027 to shift spending away from “one-size-fits-all”, towards more targeted energy supports alongside long-term investment in energy efficiency and a more resilient energy system.

Attending the National Economic Dialogue today, Deirdre Duffy, CEO of Friends of the Earth said, 

“We know from the ESRI that energy price increases have hit lower-income households the hardest [2]. At the same time universal supports result in significant public spending flowing to higher-income households. This simply isn’t fair, and risks deepening inequality and divides just as we need to work together on energy transition. At the same time we’re seeing soaring profits for fossil fuel companies [3] while our communities choose between eating or heating.”

Today we will also highlight the fiscal risks associated with continued fossil fuel dependence, including exposure to volatile energy prices and billions in ever more likely EU compliance penalties [4] for missed emissions targets.

Highlighting energy prices  as part of the Dialogue, Clare O’Connor, Programme Coordinator at Friends of the Earth, said,

“As discussions begin this morning in Dublin Castle on priorities for Budget 2027, policymakers face a choice between spending hundreds of millions on untargeted measures that do little to tackle energy poverty, or investing in targeted energy supports that deliver better outcomes for households and reduce Ireland's exposure to volatile fossil fuel prices.”

“Energy poverty is not only  a social and climate justice issue, it’s also a structural policy failure. The ESRI shows Government can respond  at a relatively manageable fiscal cost when supports are properly targeted. 

“Ireland remains dangerously dependent on fossil fuels, with the highest reliance on  gas for electricity in Europe [4].  Measures, such as energy upgrades and balcony solar, can  ensure Ireland moves away from a fossil fuel energy system that drives high prices, volatility and ongoing household vulnerability.”

“Without an immediate shift in approach, we risk weakening household support while leaving the underlying drivers of high energy costs unchanged. The National Economic Dialogue is an opportunity to begin the course correction that would ensure Budget 2027 reduces energy poverty, strengthens energy independence, and delivers a fair transition for everyone.”

Friends of the Earth is calling for a package of budgetary measures to ensure that climate policy strengthens, rather than undermines, social equity and cohesion, including:

1. Targeted Energy Supports by increasing rates and expanding eligibility for the Fuel Allowance and Disability Allowance to ensure it reaches those who need it and restores its purchasing power to the reality of today’s energy prices. An additional emergency payment should be provided for low-income oil-dependent households this winter, which would particularly assist vulnerable households in rural areas. 

2. Emergency Expansion of Home Energy Upgrades Ahead of Winter 2026
   Budget 2027 should provide additional resources to rapidly expand SEAI and local authority delivery capacity, firstly by prioritising fast-to-install measures such as insulation for the most at risk homes, accelerating support for vulnerable households already on the Warmer Homes Scheme waiting list, and further expanding the Solar PV Scheme for medically vulnerable households . 

3. Introduction of a Social Energy Tariff or guaranteed energy baseline for low-income households, ensuring access to an essential minimum level of energy at an affordable rate, drawing on models already in place in several European countries.

4. Support Renters with Energy Costs by removing the barriers to plug-in balcony solar installation, and introduction of new financial supports for energy upgrades in rented homes, such as including HAP tenants in eligibility criteria for the Warmer Homes Scheme.

5. Stronger protections for households in energy arrears, including automatic enrolment onto the lowest available energy tariff for vulnerable households, alongside strengthened consumer protections and structured debt relief.

The proposals are strongly aligned with recent recommendations from the Just Transition Commission, which warns that without intentional design, the costs of climate action risk falling disproportionately on lower-income households, rural communities and other vulnerable groups.

Notes

[1] ESRI, (2026) Energy poverty and affordability in Ireland available here https://www.esri.ie/system/files/publications/SUSTAT139.pdf 

[2] ESRI, (2026) The distributional impact of energy price increases in Ireland and the policy response, available here https://www.esri.ie/system/files/publications/RN20260201.pdf. 

[3] https://www.theguardian.com/environment/2026/apr/15/big-oil-huge-war-windfall-consumers

[4] Irish Fiscal Advisory Council, 2026, A colossal missed opportunity: Ireland’s climate action and the potential costs of missing targets, https://www.fiscalcouncil.ie/a-colossal-missed-opportunity/. 

[5] According to Ember's electricity generation data, in recent years, Ireland has had the highest share of electricity generated from natural gas (excluding small/island states such as Malta). See https://ember-energy.org/data/electricity-data-explorer