Dáil Éireann Debate, Tuesday - 26 May 2026
172. Deputy Pa Daly asked the Tánaiste and Minister for Finance if he has considered introducing a windfall tax on energy companies; if he has raised this with other EU member states; if he will make this a priority during Ireland's EU Presidency; and if he will make a statement on the matter. [39598/26]
View answerThe current energy market disruption and implications for long-term energy security, together with the imperatives of decarbonisation and increasing the production of renewable energy, are central to many discussions at Ministerial and official level in EU fora.
The European Commission’s AccelerateEU communication addresses the EU’s rising energy costs on volatile fossil fuel markets and aims to accelerate the clean energy transition and strengthen EU energy resilience. While the communication notes that Member States may take domestic measures with regard to windfall profits, no EU-wide approach has as yet been agreed.
As the Deputy may be aware, a Temporary Solidarity Contribution (TSC) 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, following the commencement of war in Ukraine. 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 at the time could not be sufficiently achieved by Member States individually.
It continues to be the Government’s view that tackling the energy crisis in a coordinated way between EU Member States is preferable, given the interconnectedness of EU energy markets.
In this context, windfall contributions and broader energy market developments continue to be a central focus of many EU discussions and Ireland will engage constructively with its EU partners, including during its forthcoming EU Presidency, to ensure any response is coordinated and effective.
The Government is conscious of the increased financial pressure on households and businesses arising from the ongoing conflict in the Middle East. In response, the Government has introduced temporary and targeted measures to reduce fuel prices for households and businesses, with additional supports for key sectors of the Irish economy. This includes the reduction of excise on petrol and diesel, extending the fuel allowance season by a further four weeks, and targeted relief to haulage and bus passenger operators. Measures have also been taken to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. Alongside this, work is ongoing through the National Energy Affordability Taskforce to identify further measures to enhance energy affordability.
