Energy Policy

Dáil Éireann Debate, Tuesday - 6 December 2022

Tuesday, 6 December 2022

Ceisteanna (110)

Seán Sherlock

Ceist:

110. Deputy Sean Sherlock asked the Minister for the Environment, Climate and Communications if enabling legislation will be required to implement the provisions of Council Regulation (EU) 2022/1854 including the temporary solidarity contribution on fossil fuel production and refining; if any analysis has been carried out on the impact of such a levy on strategically important facilities for Ireland’s energy security such as a facility (details supplied); and if he will make a statement on the matter. [60213/22]

Freagraí scríofa

Minister for the Environment, Climate and Communications

Council 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 measures, including a temporary solidarity contribution based on increases in taxable profits in the fossil fuel production and oil refining sector.  

On 22 November, the Government decided that the temporary solidarity contribution will apply for 2022 and 2023, taxable profits which are more than 20% above the baseline period from 2018 to 2021 will be subject to a rate of 75%, and losses from previous years will not be taken into account in the calculation of the taxable profits.  

Legislation will be required to implement the temporary solidarity contribution of this Regulation. My Department is currently working with other Government Departments, agencies and relevant stakeholders on the development of this legislation. This work includes consideration of any potential impact on Ireland's energy security.