An energy windfall tax must be used to benefit those struggling the most, according to Fine Gael MEP, Sean Kelly.
His comments follow reports that the Cabinet is expected to sign off on such a tax today (Tuesday, November 22). Wind and solar energy companies are expected to have their market revenues capped.
It’s understood there is also a proposal that companies producing fossil fuels be required to pay a solidarity contribution.
The European Union (EU) put forward the idea of skimming excessive profits of energy companies back in September. Since then prices have started to fall, but it is feared many companies and households are struggling with their bills.
Some reports suggest the windfall tax could bring in €1 billion for the Irish government.
MEP Sean Kelly, says ministers must be honest and open about how the cash is shared out. He told EuroParlRadio:
“I think it should be redistributed to those who are suffering most in paying their energy bills, those in energy poverty, those who can’t warm their houses, who are struggling to put food on the table.
“I hope that they will make it very clear, and people can see transparently that they are distributing them to those who need it most.”
Wind energy
Meanwhile, wind energy reached a new generating record in Ireland in October as it accounted for 45% of the country’s total electricity demand, according to a report published last week.
This was an increase of 95% compared to September and meant that, similar to 2021, wind energy was the largest contributor to power generation in October, the Gas Networks Ireland (GNI) report said.
During certain periods last month, wind accounted for up to three quarters of power generated.
Given the nature of the renewable energy, wind supply dropped almost entirely at times last month resulting in less than 1% of electricity generation.