Energy Policy

12. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment if he is aware of recent comments by Wopke Hoekstra, the EU climate Commissioner, and EU Commissioner Dan Jørgensen, who have confirmed that member states can take measures to tackle windfall profits of energy companies; if he will therefore reintroduce the cap on market revenues; if not, to outline the reasons; and if he will make a statement on the matter. [78166/26]

Chun an taifead a cheartú, bhíomar ag caint níos luaithe mar gheall ar Tonn Nua agus dúramar “Lí Bán”. Just to correct the record, it is Lí Ban, which is, of course, the name of a mermaid. Another myth, of course, has been that we were unable to tackle windfall profits of energy companies in this country. EU climate Commissioner Wopke Hoekstra recently said that member states are able to take measures to tackle energy companies and introduce a windfall tax. Will the Minister of State do that? Other countries have recognised this can be done. Will the Government take any action on it?

The major disruption to global energy supply due to the situation in Iran and the Middle East is reflected in extremely volatile commodity prices over the past number of months. This has resulted in high energy prices for households and businesses across Europe, including Ireland. Officials in my Department and other relevant Departments continue to closely monitor developments to assess their impact on Ireland, as well as develop appropriate responses. There are a number of practical and administrative challenges in designing and introducing an effective windfall tax or market revenue cap, particularly in the absence of an EU-wide measure. When introducing any measure, particularly in the context of global crises, policymakers must strike a balance between addressing affordability and distributional concerns in the immediate term and safeguarding long-term objectives, such as energy security, investment certainty for our future energy system and the pace of decarbonisation. It is important to evaluate and consider the unintended consequences that may arise from the implementation of a windfall tax or market revenue cap, including long-term effects on investment, market behaviour and energy supply. The Government proactively established the national energy affordability task force to examine energy affordability changes and identify practical measures to support households and businesses. The work of the task force has helped inform key aspects of budget 2027, with a focus on those most vulnerable and at highest risk. Budget 2027 provided a record €654 million for residential and community home upgrades. The investment will support households to improve energy performance of their homes, lower energy consumption and reduce bills. The task force is finalising this action plan and it is due for publication.

To allow my colleague, Deputy Ward, to get in, I will put a very short question. The cap on market revenues measure was operational for about six months. There is €170 million of that money still lying in the coffers of the Government. Why has that not been spent? Are there any plans to spend it?

I do not have that detail on me but will certainly furnish the Deputy with it.