Dáil Éireann Debate, Monday - 11 September 2023
157. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications to provide an update on how the cap on market revenues will be spent; how it will provide relief to households facing high energy costs; how it will be used to target energy poverty; if it will be targeted at large energy users; and if he will make a statement on the matter. [38670/23]
View answerOn the 31st August, the Government published the Energy (Windfall gains in the Energy Sector)(Cap on Market Revenues) Bill 2023. The bill aims to cap the revenues of energy companies, which have experienced large profits in recent times, and provide for the re-distribution of that money back to consumers.
The legal basis for this Bill is provided for in Council Regulation (EU) 2022/1854 which represents an emergency intervention to address high energy prices. Article 10 of the Council Regulation states that surplus revenues collected through the Market Cap must be distributed in accordance with measures to support final electricity customers in a transparent and proportionate manner.
The Council Regulation details potential suitable measures such as financial compensation and direct transfers to final electricity consumers, lowering the cost of purchasing electricity for energy consumers and promoting investments by final energy consumers into de-carbonisation technologies, renewables and energy efficiency investments.
This Article is provided for in Section 28 of the Bill which outlines the arrangement of schemes which can be used for the disbursement of proceeds from the Market Cap Fund. The proceeds from the cap on market revenues will be retained by the Commission for Regulation of Utilities (or EirGrid on their behalf) to be used to support final electricity consumers in line with Article 10 of the Regulation.
