Dáil Éireann Debate, Thursday - 11 June 2026
24. Deputy Naoise Ó Muirí asked the Minister for Climate, Energy and the Environment the way in which revenue raised through the Market Cap Fund will be allocated; the reasons for the significant underspends under Vote 29 in the 2024 Appropriation Account; and if he will make a statement on the matter. [44487/26]
View answerThe Market Cap Fund was established by the Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Act 2023. This Act implemented EU Council Regulation (EU) 2022/1854. This Regulation sought to address windfall gains in the energy sector by collecting excess revenues from companies that had unexpectedly benefited from the high energy prices arising from the Russian invasion of Ukraine.
The legislation provides that the excess revenues be used to finance measures in support of final electricity consumers to mitigate the impact of high electricity prices and that measures to be considered for allocation from the fund be clearly defined, transparent, proportionate, targeted, non-discriminatory, verifiable and not counteract the obligation to reduce gross electricity demand.
To date, I have approved up to €37 million from the Fund to the SEAI Non-Domestic Micro-generation Grant Scheme, of which €10 million has been approved since June 2025, to cover anticipated payments under this scheme to the end of 2026. The scheme provides support to the SME and not-for-profit sectors to address energy costs and reduce emissions in their buildings, and is open to businesses, public sector bodies, societies and charities. Disbursements to this scheme take place on a regular basis to enable SEAI make payments following completion of installation works by approved applicants. Total disbursements to the end of May 2026 were €15.618 million.
The 2024 outturn for my Department was €1.734 billion, 98% of my Department’s 2024 provision. This left a surplus of €38.479 million (2%) which was surrendered to the Exchequer. The main reasons for the underspends related to demand led schemes where funds were not drawn down during the year. Full details of my department’s financial performance for 2024 is set out in the Appropriation Account, available at www.audit.gov.ie/en/find-report/publications/2025/vote-29-environment-climate-and-communciations.pdf
