Windfall tax on renewables
Deputy O’Rourke argued the windfall tax on renewable electricity would miss supernormal profits because the date window is too narrow. The Taoiseach said the legislation was still being drafted and he would examine the suggested change.
By the Government's own assessment, anything above €92 per megawatt hour for wind- and solar-generated electricity can be considered a windfall gain. Last July, Irish renewable energy companies were paid €182 for wind and solar; in August, €204; and in September, €341. By any measure, these are supernormal windfall profits, but here is the problem. The Government's windfall tax will tax none of these supernormal profits because the cap on market revenues will apply only from December 2022 to June 2023. Other countries - France, Belgium, Austria and the Netherlands - have recognised the madness of this and will tax, using a mechanism outside the EU regulation, more of the 2022 profits of renewable energy companies. Will the Taoiseach's Government do the same?
Comment on this
I thank the Deputy. We will certainly examine that. The legislation is only being drafted at the moment. The plan is to have the legislation through the Houses by the summer recess and to impose the tax both in September 2023 and September 2024 retrospectively on profits made, but we will certainly examine the starting point. The legislation is not yet agreed by Cabinet, so I will give the Deputy's suggestion some consideration.