I propose to take Questions Nos. 88 and 109 together.
On 22 November, 2022, the Government approved the introduction of measures to address windfall gains in the energy sector through the implementation of Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices.
The Government approved the placing of a cap on market revenues in the electricity sector which will operate from December 2022 to June 2023.
The Government has also approved the implementation of the temporary solidarity contribution which will apply to fossil fuel production and refining for the years 2022 and 2023. Taxable profits which are more than 20% above the baseline period from 2018 to 2021 will be subject to the temporary solidarity contribution at a rate of 75%.
While the Government has not yet determined how best to distribute the proceeds collected from the cap on market revenues and temporary solidarity contribution, these proceeds must be used in line with the requirements of the Council Regulation. These requirements, including the need to be non-discriminatory, are unlikely to allow the proceeds to be allocated only to a specific area of the country.
My Department is currently developing the legislation required to implement the cap on market revenues and the temporary solidarity contribution.
