Dinny McGinley (Donegal South West, Fine Gael)
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Question 61: To ask the Minister for Communications, Energy and Natural Resources his plans to address the issue of windfall profits being made by electricity generators on the back of charging consumers for the cost of carbon; and if he will make a statement on the matter. [10212/10]

Michael D Higgins (Galway West, Labour)
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Question 69: To ask the Minister for Communications, Energy and Natural Resources his plans to address the issue of windfall profits being made by electricity generators; the position regarding the types of legislative mechanisms that may be put in place to recover carbon windfall gains from electricity generation companies; the most recent amount of windfall profits generated; and if he will make a statement on the matter. [10140/10]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 61 and 69 together.

My Department in consultation with the Office of the Attorney General has been working to progress a scheme to provide for the recovery of carbon windfall gains from electricity generators to the end of the current EU Emissions Trading Scheme in 2012. Under the current Emissions Trading Scheme there is a free allocation of carbon credits to electricity generators.

The Single Electricity Market Committee has statutory responsibility for the operation of the all island electricity market. The Committee decided in 2008 that the full costs of the free carbon allocations should be passed through to the market. This has been a cause of considerable concern to business because of the impact on the wholesale cost of electricity. Business Groups have also expressed concerns about the related carbon windfall profits earned by electricity generators. These concerns have been raised consistently in the context of energy costs for business and their impact on competitiveness.

In July last year the Government agreed a series of measures to mitigate where possible energy costs for business. As part of those measures the Government decided to progress the introduction of legislation to recover carbon windfall gains from generators up to 2012.

There are legal, technical and other complex considerations inherent in any potential treatment of carbon windfall gains. My Department has been working to comprehensively address all these considerations in finalising proposals for the drafting of legislation. I can advise the Deputy that the Government have today approved my proposals to draft legislation on the implementation of a carbon windfall levy. My Department will be working with the Office of the Parliamentary Counsel to finalise the draft legislative provision with a view to its publication shortly.