Dáil Éireann Debate, Tuesday - 21 April 2026
303. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance if he will impose a windfall tax on energy companies, similar to the temporary solidarity tax imposed during the initial invasion of Ukraine in 2022, in order to ensure that unjustified profits are not made on the recent spike in international gas prices; and if he will make a statement on the matter. [26929/26]
View answerThe Temporary Solidarity Contribution (TSC) was a temporary and time-limited emergency intervention, arising out of the increase in energy prices as a result of the war in Ukraine. It was introduced in line with Council Regulation (EU) 2022/1854 of 6 October 2022 to tackle windfall gains being made in the energy sector at the time. Specifically, the TSC was levied on fossil fuel producers and applied at a rate of 75 per cent on surplus taxable profits in both fiscal years 2022 and 2023.
Importantly, while the TSC was administered by the Revenue Commissioners, it was not a tax measure; it was a solidarity contribution provided for in an energy regulation agreed at EU-level under Qualified Majority Voting (QMV) procedures. As such, the TSC formed part of a co-ordinated European response, reflecting the highly interconnected nature of EU energy markets and a view that an emergency intervention to mitigate the effects of high energy prices could not be sufficiently achieved by Member States individually.
It is also worth noting that it was introduced in response to a more significant price shock – I am advised by the Department of Climate, Energy and the Environment that the average gas price in the second half of 2022 was 319 GBpence/therm, compared to 131 GBpence/therm for the month of March 2026.
In June 2025, the Department of Climate, Energy and Environment established the National Energy Affordability Taskforce (NEAT) to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewables commitments, and protecting security of supply and economic stability. The First Report of the Taskforce was published last November.
In response to the ongoing conflict in the Middle East, further NEAT meetings have taken place over the last month, bringing together senior representatives from across Government, the energy sector, and the Commission for the Regulation of Utilities (CRU) to examine the macro implications of the conflict for global energy markets; current supply and pricing conditions across oil, gas and electricity in Ireland; customer support measures in place; and the European response to the crisis.
At present the Government is taking action to help households and businesses with the cost of fuel and energy through the reduction of excise on petrol and diesel and a reduction in the NORA Levy. The combined March and April support packages delivered reductions of 32 cent per litre of diesel and 27 cent per litre of petrol. Government has also extended the fuel allowance season by a further four weeks, providing support to vulnerable groups such as pensioners, carers, people with a disability and low-income working families. To provide targeted relief to haulage and bus passenger operators, the Government has increased the maximum repayment allowable under the Diesel Rebate Scheme from 7.5 cent to 12 cent per litre of diesel. This will apply to diesel purchased from 1 January 2026 until 30 June 2026. The measures are a direct response to the worrying conflict in the Middle East, a conflict that we all hope can be brought to an end. Government has also deferred the carbon tax increase which was scheduled to take effect from 1 May until 14 October 2026. This will provide additional relief to consumers of kerosene, marked gas oil, natural gas, solid fuels and other relevant fuels.
Furthermore, Government announced a comprehensive €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. The April support package also includes further supports for haulage and bus passenger operators, including local link and school transport providers.
Government is also making crucial investments in renewable energy, in our electricity grid and, importantly, in energy efficiency. The ongoing conflict in the Middle East underlines – once again – why we must accelerate the deployment of renewables across all sectors, continue to invest in our grid, and continue to invest in retrofitting of homes and businesses across the country.
Further analysis will now be carried out in order to inform the Energy Affordability Action Plan. A dedicated NEAT subgroup is being established to monitor global and national energy supply, with a separate subgroup to advise on appropriate demand-side responses. This Plan will include a broad review of cost drivers in the energy sector and will identify a comprehensive range of solutions. It will further progress work that has been completed to date on energy poverty, including work from the Energy Poverty Steering Group. Specific engagement and measures to address those most at risk of energy poverty will also be a key feature of the Energy Affordability Action Plan due for publication later this year.
