Dáil Éireann Debate, Tuesday - 20 September 2022
91. Deputy Emer Higgins asked the Minister for the Environment, Climate and Communications the provisions in place for Budget 2023 to include a windfall tax on energy providers profiteering from the cost-of-living crisis; and if he will make a statement on the matter. [45750/22]
View answer101. Deputy Rose Conway-Walsh asked the Minister for the Environment, Climate and Communications the steps he will take to address the situation where a domestic gas producer is making record profits selling into the Irish market driving up domestic energy costs; and if he will make a statement on the matter. [45724/22]
View answerI propose to take Questions Nos. 91 and 101 together.
Increased wholesale gas prices, which are mainly caused by Russia reducing supplies to Europe and the war in Ukraine, are leading to unprecedented increases in electricity and gas prices for households and businesses.
They are also leading to windfall gains for some energy companies across Europe, particularly those companies involved in the production of fossil fuels and those who are producing energy at a much lower cost that the cost of gas.
My Department and the Department of Finance have been exploring the potential to collect a portion of these windfall gains with a view to using the proceeds to support energy consumers.
Recently, there have been significant developments at European level in relation to windfall gains. At the Council of Energy Ministers meeting on 9 September, which I attended, the issue of windfall gains was discussed in some detail. Outline proposals were discussed and the Council of Energy Ministers invited the European Commission to make formal proposals.
On 14 September the European Commission published a proposed regulation which includes measures aimed at addressing windfall gains in the electricity sector and in fossil fuel production. These proposals are expected to raise additional revenues which will be used to reduce the cost of energy for households and businesses. It is important that this proposal captures the windfall gains and minimises negative impacts on consumers.
The proposal will be negotiated throughout the remainder of this month with a view to being approved at a meeting of the Council of Energy Ministers on 30 September. I fully support the objectives of this proposal and am working to ensure it fully addresses the issues of windfall gains in Ireland.
