Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

This is a fair question to raise and a good thing to discuss. The cap on market revenues is going to operate from 1 December 2022 until 30 June 2023. That is set out in the European Union regulation, which states that a set of measures should be urgent, temporary and exceptional. The regulation does not provide for the cap to extend to periods after this period or before this period. The Department received legal advice as regards applying the cap beyond December 2022. That advised that where the State departs from the regulation, those aspects will be more vulnerable to legal challenge on the grounds of retrospectivity and interference with Irish constitutional rights such as property rights and retrospectivity, which are specifically referenced in the Irish Constitution. At European level, the European Commission decided not to extend the cap on market revenues, citing concerns for regulatory uncertainty, incentives for new investment, high administration costs, reduced production by generators and potential interference with electricity market design. The Parliament will not be extending the cap on market revenues as a national measure and I do not propose to accept the amendment.