Dáil Éireann Debate, Thursday - 2 July 2026
181. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment to report on the revenue generated from the Cap on Market Revenues; to provide a breakdown on the revenue that has been spent; the amount that remains; and if he will make a statement on the matter. [50379/26]
View answer185. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment if he has conducted any analysis on the revenue that would be earned by the cap on market revenues per year if it had of been kept in place; if he has considered reintroducing same; his reasoning for this; and if he will make a statement on the matter. [50387/26]
View answerI propose to take Questions Nos. 181 and 185 together.
The Market Cap Fund was established by the Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Act 2023. This Act implemented in Ireland EU Council Regulation (EU) 2022/1854 which 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 the allocation of up to €37m from the Market Cap Fund to the Non-Domestic Micro-generation Grant Scheme, of which €10m has been approved since 10 June 2025, to cover anticipated payments by SEAI under this scheme to the end of 2026. That 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 SEAI to the end of June 2026 for this scheme were €16.882m.
The cash balance in the Market Cap Fund at the end of June 2026 is approximately €177m.
I intend that the remaining balances in the Market Cap Fund will be fully deployed, in accordance with the applicable legislation, and subject to consent from the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitisation, to fund suitable measures to support electricity customers. This is expected to include a continuation of funding for the Non-Domestic Micro-generation Grant Scheme as well as consideration of funding for any new measures to be brought forward in a new Energy Affordability Action Plan by the National Energy Affordability Taskforce.
In accordance with the EU Regulation, the cap on excess revenues was introduced as a temporary measure and applied on a once-off basis covering the period 1 December 2022 to 30 June 2023. I have no plans to extend the application of this cap beyond this period on a unilateral basis in Ireland in the absence of a coordinated approach at EU level, which is preferable given the interconnectedness of EU energy markets.
