Dáil Éireann Debate, Tuesday - 7 March 2023
182. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if it is the case that the windfall tax on electricity companies operating here will apply only from 1 December 2022 to 30 June 2023; if there is provision in the Council Regulation (EU) 2022/1854 to apply the tax retrospectively to account for the super-normal profits prior to that period; and if he will make a statement on the matter. [11366/23]
Amharc ar fhreagra185. Deputy Ged Nash asked the Minister for the Environment, Climate and Communications if he will provide a specific timeline for the introduction of a windfall tax on the extraordinary profits of energy companies; what he expects the tax to raise in its first 12 months; and if he will make a statement on the matter. [11261/23]
Amharc ar fhreagraI propose to take Questions Nos. 182 and 185 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.
This includes the introduction of a temporary solidarity contribution which will apply to the fossil fuel production and refining sectors for the years 2022 and 2023.
It also includes a cap on market revenues in the electricity sector which will apply for the period December 2022 to June 2023. The Council Regulation does not provide scope to extend the cap on market revenues prior to this period.
It is estimated that the two measures will result in proceeds of between €280 and $600 million being collected. The majority of these proceeds are expected to be collected in 2023. It should be noted that the level of proceeds collected from these measures will be dependent on many variables, such as the cost of wholesale gas over the coming months.
My Department is currently developing the legislation required to implement the temporary solidarity contribution and the cap on market revenues. A general scheme of a bill is expected to be brought to Government for approval in the coming weeks.
