Dáil Éireann Debate, Wednesday - 26 April 2023
38. Deputy Ivana Bacik asked the Minister for the Environment, Climate and Communications the further measures he intends to introduce for consumers using the revenue from energy windfall taxes; the estimated revenue he expects to be available in 2023; if the revenue will accrue to his Department or the central fund; and if he will make a statement on the matter. [19676/23]
View answerCouncil 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. It is estimated that the two measures will result in proceeds of between €280 million and €600 million being collected. The majority of these proceeds are expected to be collected in 2023. It should be noted that the level of proceeds collected from these measures will be dependent on many variables, such as the cost of wholesale gas. The proceeds from the temporary solidarity contribution will be collected by the Revenue Commissioners and remitted to the Exchequer. The proceeds from the cap on market revenues will be collected by the Commission for Regulation of Utilities. 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.
