The EU Commission needs to show flexibility on state aid rules for domestic energy production, according to an Irish MEP.

Sean Kelly believes that the measure would help to counter the recent spike in the price of electricity and gas.

"Along with the rising cost of living, this is putting a big strain on Irish households, with those on lower incomes feeling the most pressure,” the Ireland South MEP said.

“The government has taken some welcome measures to mitigate the impact of these price increases in the immediate term.

"However, to counter the risks of energy poverty, we need to solve the root problem causing the high prices, which is the EU’s over-reliance on Russian pipeline gas," he added.

The MEP, who is a member of member of the European Parliament’s Industry, Research and Energy Committee, stated that the only solution is "to accelerate the deployment of renewables".

“However, we also need to diversity our gas supplies for the short and medium-term to ensure we have energy security”, Kelly continued.

“The government needs to invest in developing domestic energy supplies. However, at the moment, they are constrained by EU rules prohibiting state aid.

“Global demand and geopolitical tensions are going to continue to drive up prices for Irish consumers if we do not take strong action now,” Kelly underlined.

“The commission needs to equip us with the tools to secure a home-grown, reliable energy supply in order to tackle rising energy costs," the Fine Gael MEP concluded.

Meanwhile, Gas Networks Ireland said that demand for gas was down by 22% in January and 7% in February.

Stormy weather conditions led to wind energy generating 53% of Ireland's electricity last month; this is the highest contribution on record from the sector.

Gas accounted for 28% of Ireland's electricity last month and coal generated 11% of the power needed in the country.