Dáil Éireann Debate, Thursday - 22 September 2022
178. Deputy Rose Conway-Walsh asked the Minister for the Environment, Climate and Communications the estimated revenue to the Exchequer from the proposed-European Union windfall tax on inframarginal electricity generation; his views on whether the measure goes far enough; if he will consider an additional windfall tax on hydrocarbon extraction; and if he will make a statement on the matter. [46278/22]
View answerIncreased 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.
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. This proposal is expected to raise additional revenues which will be used to reduce the cost of energy for households and businesses. My Department is currently working to clarify various aspects of the proposal, following which it should be possible to provide estimates of expected revenues.
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.
