Dáil Éireann Debate, Tuesday - 28 November 2023
207. Deputy Eoin Ó Broin asked the Minister for Finance to outline what legislative basis the Revenue Commissioner has for using the fuel mix disclosure, as published by the Commission for Regulation of Utilities, when making a determination on the percentage of electricity that is from renewable sources and therefore eligible for relief from the electricity tax. [52480/23]
View answerIreland’s taxation of fuel and electricity is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD provisions regarding taxation of electricity are transposed into national law in Chapter 1 of Part 2 of Finance Act 2008 (as amended). This provides for the application of an excise duty, in the form of Electricity Tax, on electricity supplied to consumers in the State. Liability rests with the suppliers and returns are filed annually. The current rate of Electricity Tax is €1.00 per megawatt hour which is one of the lowest excise rates on electricity in the EU.
Section 63(1)(b) of the Finance Act 2008 provides for a relief from Electricity Tax for electricity generated from renewable sources. Qualifying renewable sources are set out in section 63(2)(a) and include solar, wind, wave, tidal, geothermal, hydraulic, biomass, products produced from biomass, and fuel cells. Electricity Tax is self-assessed and liable suppliers claim relief for renewable electricity supplies by way of remission in the first instance, or by way of repayment where Electricity Tax has been overpaid. I am advised by Revenue that suppliers claiming relief must sign relevant declarations regarding the factual accuracy of all details provided. As is the norm with self-assessed taxes, claims for relief are subject to compliance interventions on a risk basis. In circumstances where the origin of the electricity supplied cannot be established, section 63(4)(c)(i) of the Finance Act 2008 provides that a determination shall be made by reference to the data on the fuel mix in respect of the supplier concerned, as published by the Commission for Regulation of Utilities (CRU). As previously outlined to the Deputy, policy and legislation with regard to the market regulatory framework, including requirements for electricity suppliers to report Fuel Mix Disclosures to the CRU, comes within the remit of my colleague the Minister for the Environment, Climate and Communications.
