Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 62: To ask the Minister for Communications, Energy and Natural Resources if he plans to introduce a carbon windfall profits tax on energy generation here; if so, when he will take action on same. [16609/10]

Eamon Ryan (Dublin South, Green Party)
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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. 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. I can advise the Deputy that, subject to final legal drafting, I intend to introduce amendments at Committee stage of the Biofuels Obligation Bill which is currently before the House that will place a levy upon electricity generators to recover a substantial proportion of these gains. These amendments will be circulated shortly and I look forward to the Committee Stage debate on them.