Jennifer Whitmore
Ceist:151. Deputy Jennifer Whitmore asked the Tánaiste and Minister for Finance for an update on the introduction of a windfall tax for large energy companies. [65222/26]
Amharc ar fhreagraTuesday, 29 September 2026
Ceisteanna (151)
Freagraí scríofa
The Government is conscious of the increased financial pressure on households and businesses in recent months arising from conflict in the Middle East. In response, this Government has delivered one of the largest support packages in the EU per head capita with over €1.3 billion in supports. 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.
As the Deputy is aware, the European Commission's AccelerateEU Communication addresses the EU's rising energy costs and volatile fossil fuel markets and aims to accelerate the clean energy transition and strengthen EU energy resilience. While the Communication notes Member States may take domestic measures, no EU-wide approach has yet been agreed. The temporary solidarity contribution, TSC, was introduced in line with Council Regulation 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 - when we acted, we did so at an EU level - 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 co-ordinated way between EU member states is preferable, given the interconnectedness of EU energy markets.
As Minister of Finance, and in the context of Ireland’s Presidency of the Council of the EU, I received a joint letter from six EU Member States regarding the possibility of a windfall levy on exceptional profits made by oil companies as a result of heightened prices due to the conflict in the Middle East.
Governments across Europe are rightly attentive to developments in energy markets and their impact on households, businesses and the wider economy. The topic was discussed as part of the recent informal ECOFIN in Dublin and I have requested the Commission to reflect on those discussions and report back on this issue at the upcoming ECOFIN in October.
When introducing any measure, particularly in the context of global crises, policymakers must strike a balance between addressing short-term distributional concerns and safeguarding longer-term objectives such as energy security, investment certainty and the pace of decarbonisation.
It is the Government's view that the best long-term approach for Ireland to insulate consumers from volatility on international wholesale energy markets is to invest in energy efficiency and renewable energy. Cutting our dependence on fossil fuels and generating power from our own renewable sources will ensure a cleaner, cheaper energy future in the long term.