Dáil Éireann Debate, Thursday - 19 June 2025
210. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment further to Parliamentary Question No. 238 of 10 June 2025, to provide a breakdown of the revenue generated from the temporary solidarity contribution that was used to support measures for final energy customers, introduced in Budgets 2024 and 2025. [33493/25]
Amharc ar fhreagraCouncil Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices provides for a temporary solidarity contribution on unexpected surplus profits (“windfall gains”) in the fossil fuel production and refining sectors as a result of the Ukraine war.
The temporary solidarity contribution was implemented in Ireland through the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023. This Act provides for two payments of temporary solidarity contribution in respect of the years 2022 and 2023 and also provides the Revenue Commissioners with the legislative powers to administer, collect and enforce the temporary solidarity contribution.
Classified as non-tax revenue in the Exchequer Returns, the Temporary Solidarity Charge collected amounted to €167.2 million for 2023 and €99.7 million for 2024. Proceeds from the contribution must be used for financial support measures for final energy customers, and in particular vulnerable households, to mitigate the effects of high energy prices, in a targeted manner. These funds were used as part of the financial support measures for final energy customers introduced in Budgets 2024 and 2025.
As part of Budget 2024, 2.2 million households were granted energy credits in 3 instalments of €150 which were applied on 1 December 2023, 1 January 2024 and 1 March 2024. For this Budget 2024 measure, the total cost to the Irish Exchequer was approximately €1 bn. The €167.2m collected in 2023 was used to part fund these energy credits.
As part of Budget 2025, a similar measure was applied where Energy Credits were granted in 2 instalments of €125 which were applied on 1 November 2024 and 1 January 2025. For this Budget 2025 measure, the total cost to the Irish Exchequer was approximately €570 million. The €99.7m collected in 2024 was used to part fund these energy credits.
