Eamon Ryan (Dublin Bay South, Green Party)
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Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices came into force in October 2022. This Regulation seeks to address windfall gains in the energy sector through a temporary solidarity contribution based on taxable profits in the fossil fuel production and refining sector and a cap on market revenues of specific generation technologies in the electricity sector.

A General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023, which will implement the temporary solidarity contribution and the cap on market revenues, was approved by Government and published on 21 March.

The cap on market revenues in the electricity sector 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. The temporary solidarity contribution will apply for 2022 and 2023.

It is estimated that the two measures will result in proceeds of between €280 million and €600 million being collected. It will be a matter for Government, as part of the annual Budget process and in line with the Council Regulation, to determine how the proceeds collected from the windfall measures temporary solidarity contribution will be distributed. The proceeds from the Temporary Solidarity Contribution and the Cap on Market Revenues may be used to provide financial supports to households and companies heavily affected by soaring energy prices. It may also be used to help support investment in areas such as renewable energy.