Energy Minister Eamon Ryan has said he believes targeting the revenues of energy companies to help to reduce household bills could work in Ireland.
Mr Ryan said he supports the European Commission proposal and hopes an agreement will be reached on Friday which will help to cushion the blow for Irish households.
The proposal is similar to a windfall tax on profits, but it would target suppliers who do not depend on burning gas to generate power.
He also said local authorities across the country are already looking at reducing Christmas lights this winter to help with the energy crisis.
He said the Government is not being prescriptive yet but added: “I think local authorities are starting to look at that, they are starting to consider every measure.”
Mr Ryan will meet with Taoiseach Micheál Martin and Tanáiste Leo Varadkar on Tuesday evening to discuss how they plan to reduce energy use across the country, with a memo expected to go before Cabinet on Wednesday.
“With regard to the European Commission proposals, they have included this idea that in electricity production, which is not from gas, that there are very high profits being made now and to look at taking some of that revenue and actually use it to lower the prices for the householders," said Mr Ryan.
I think that’s a mechanism that could work, should work, will work.
“We’ve to get the finer details of it on Friday and discuss it with my Cabinet colleagues and party leader colleagues this evening in a meeting.
"I think it may work well in the Irish market, not to protect us completely but to be a significant help.”
He said a meeting on Friday of energy ministers across the EU will decide the mechanisms on how to adjust the market and he is hopeful an agreement will be reached which will allow the Government to introduce measures “to try and cushion the blow of some of those higher bills”.
Mr Ryan said the memo going to Cabinet on Wednesday will be the first of a series to manage what “is going to be a very difficult situation in energy”.
The coalition leaders are expected to agree on proposals that they hope will reduce energy use in the public sector.
This will include temperature limits in buildings and heating certain floors of offices where people are working.
“Reduce your Use campaign has been clear, it’s about reducing the use of heat, reduce the use of light, power in a whole variety of different ways and we’ll start with that in the public sector, setting temperature limits, consolidating buildings so we’re not heating the whole building, making sure we’re switching things off in an effective way.”
He said household bills will continue to be significant this winter because “energy is being used as a weapon of war”.
