Dáil Éireann Debate, Tuesday - 8 November 2022
32. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will provide an update on the negotiations from the EU Energy Council negotiations on decoupling gas from electricity prices, price cap proposals and on the windfall tax on excessive profits of energy companies; and if he will make a statement on the matter. [55350/22]
View answerThe European Council met on 20 October to continue work on Europe’s response to the energy crisis precipitated by Russia’s invasion of Ukraine. The focus of this meeting was on wholesale gas prices. The Council and the European Commission have been called on to urgently submit concrete decisions in a number of areas, including but not limited to:
- voluntary joint purchasing of gas;• a new complementary gas price benchmark, that more accurately reflects conditions on the gas market;
- a temporary ‘dynamic price corridor’ on natural gas transactions on the main European gas exchange; and
- a temporary EU framework to cap the price of wholesale gas in electricity generation, while preventing increases in gas consumption;
Officials in my Department will work closely with its EU counterparts in the consideration of these proposals. It should be noted that while Ireland secures its gas mainly from the UK, these measures may not have an immediate impact however over the medium term they should lower wholesale gas prices generally.
In relation to price cap proposals and on the windfall tax, on 30 September the Council of Energy Ministers agreed a Council Regulation on an emergency intervention to address high energy prices. The Regulation includes provisions that deal with windfall gains in the energy sector through a temporary solidarity contribution based on taxable profits for fossil fuel production and oil refining, and by introducing a cap on market revenues of for specific technologies in the electricity sector. My Department is currently working with relevant Departments, agencies and stakeholders to implement the Regulation.
