Dáil Éireann Debate, Tuesday - 27 September 2022
28. Deputy Violet-Anne Wynne asked the Minister for the Environment, Climate and Communications if a windfall tax on energy suppliers will be introduced in the short-term; if this tax will be linked to the profits derived from energy sources other than the costs associated with wholesale gas purchases; and if he will make a statement on the matter. [46748/22]
Amharc ar fhreagraIncreased wholesale gas prices, which are mainly caused by Russia reducing supplies to Europe and the war in Ukraine, are leading to unprecedented increases in electricity and gas prices for households and businesses.
They are also leading to windfall gains for some energy companies across Europe, particularly those companies involved in the production of fossil fuels and those who are producing energy at a much lower cost that the cost of gas.
At the Council of Energy Ministers meeting on 9 September, which I attended, the issue of windfall gains was discussed in some detail. Outline proposals were discussed and the Council of Energy Ministers invited the European Commission to make formal proposals.
On 14 September the European Commission published a proposed regulation which includes measures aimed at addressing windfall gains in the electricity sector and in fossil fuel production. This proposal is expected to raise additional revenues which will be used to reduce the cost of energy for households and businesses.
The proposal is currently being negotiated throughout and is expected to be finalised and approved at a meeting of the Council of Energy Ministers on 30 September. I fully support the objectives of this proposal and am working to ensure it fully addresses the issues of windfall gains in Ireland.
