Dáil Éireann Debate, Tuesday - 20 September 2022
70. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he intends to recoup the excess profits being made by renewable electricity generators contracted under the renewable energy feed-in tariff schemes; and if he will make a statement on the matter. [45788/22]
Amharc ar fhreagraIncreased wholesale gas prices on the international markets are leading to windfall gains for some energy companies in Ireland and this includes some renewable electricity companies contracted under the Renewable Energy Feed-In Tariff (REFIT) schemes. This situation is replicated across Europe.
The best, long-term approach for Ireland to lower energy prices is to reduce our dependency on imported fossil fuels, through investment in indigenous renewable energy sources. The REFIT schemes were designed to encourage renewable electricity generators in Ireland by providing certainty with a minimum price for each unit of electricity exported to the grid over a 15-year period. Unlike the recent Renewable Electricity Support Scheme contracts, the REFIT contracts do not have a requirement for the repayment to the Public Service Obligation when the wholesale electricity price is higher than the REFIT reference price.
I attended the Council of Energy Ministers earlier this month where the issue of energy companies making excess profits was discussed in some detail. Energy Ministers invited the European Commission to propose measures aimed at capping the revenues of inframarginal electricity producers with low costs of production. This includes renewable electricity generators with REFIT contracts.
Last Wednesday the Commission published a proposal for a Council Regulation on an emergency intervention to address high energy prices. This proposal will assist Government in determining whether and, if so, how a windfall tax and other interventions could be introduced having regard to the overall approach to be adopted at EU level. Officials from my Department continue to work with colleagues across Government on these issues.
