Dáil Éireann Debate, Tuesday - 28 March 2023
189. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications how the proceeds from the Energy (Windfall Gains in the Energy Sector) Bill 2023 will be used to lower profits for consumers; if an energy credit will be introduced; and if he will make a statement on the matter. [15361/23]
View answer190. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications about the market revenue cap included in the Energy (Windfall Gains in the Energy Sector) Bill 2023 the motivation to backdate to December 2022 only, excluding the months in which the profits of energy companies were at their peak throughout 2022; and if he will make a statement on the matter. [15362/23]
View answerI propose to take Questions Nos. 189 and 190 together.
Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices came into force in October 2022. This Regulation seeks to address windfall gains in the energy sector through a temporary solidarity contribution based on taxable profits in the fossil fuel production and refining sectors and a cap on market revenues of specific generation technologies in the electricity sector.
A General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023, which will implement the temporary solidarity contribution and the cap on market revenues, was approved by Government and published on 21 March.
The cap on market revenues in the electricity sector will apply for the period December 2022 to June 2023. The Council Regulation does not provide scope to extend the cap on market revenues prior to this period.
It will be a matter for Government, as part of the annual Budget process and in line with the Council Regulation, to determine how the proceeds collected from the temporary solidarity contribution and cap on market revenues will be distributed.
