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

-----speaking on the hedging arrangement so we are all fine here. I thank Deputy Whitmore. We are all clear.

I thank the Deputies for their contributions. I thank Deputy Whitmore for tabling the amendment. The cap on market revenues, including the hedging arrangements that pertain to it, is going to apply, as per the Council regulation, from 1 December 2022 to 30 June 2023. It is not going to be extended beyond this timeframe. The Department received legal advice on applying the cap beyond these dates. It advised that where the State departs from the regulation, those aspects would be more vulnerable to legal challenge on the grounds of retrospectivity and interference with constitutional rights, including property rights. The Commission decided not to extend the cap on market revenues.

It decided this on the basis of concerns regarding regulatory uncertainty, incentives for new investment, high administration costs, reduced production by generators and potential interference with electricity market design. Those concerns were brought to the Council of Ministers, which looked at them and approved the proposed time period. With regard to this amendment, Ireland is not going to extend the cap on market revenues as a national measure. For that reason, I do not propose to accept the amendment.

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