Dáil Éireann Debate, Tuesday - 8 November 2022
39. Deputy Alan Dillon asked the Minister for the Environment, Climate and Communications if he will provide an update on the redistribution of energy profits, especially those of the Corrib gas field; and if he will make a statement on the matter. [55408/22]
View answer59. Deputy Mick Barry asked the Minister for the Environment, Climate and Communications the estimated amount that the State will receive from the European Union windfall tax on energy companies; if he supports this measure being extended; if he supports a higher rate of taxation than the rate that is envisaged; and if he will make a statement on the matter. [46195/22]
View answerI propose to take Questions Nos. 39 and 59 together.
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. It is not possible to estimate with certainty the proceeds that could be collected from the implementation of the Regulation. This is because the proceeds are dependent on the wholesale gas price which is highly volatile. The proceeds collected as a result of implementing the Regulation must be distributed in line with the provisions of the Regulation which focuses on supporting energy consumers. The cap on market revenues applies until June 2023 with a review due by the end of April 2023 and the temporary solidarity contribution applies to the end of 2023 with a review by mid-October 2023. Any potential extension of the Regulation would be informed by these reviews. My Department is currently working with relevant Departments, agencies and stakeholders to implement the Regulation.
