Windfall tax on energy companies to make up to €600m when introduced this summer

Photo: Stock image

Gabija Gataveckaite

The new windfall tax on energy companies will make up to €600m when introduced this summer under proposals to be signed off by cabinet ministers today.

Some companies generating wind, solar and oil electricity are going to have their revenues capped from December 2022 to June of this year.

Meanwhile, fossil-fuel production and refining companies will have to pay a temporary solidarity contribution on taxable profits under the long-awaited proposals.

Between €280m and €600m will be collected as a result of the two long-awaited energy windfall measures.

The new laws are set to be enacted before the summer, with the first windfall taxes due to be collected in September.

Green Party leader and Climate Minister Eamon Ryan will bring the plans to his cabinet colleagues today when ministers are expected to sign off on the General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023.

“This legislation is necessary to implement the temporary solidarity contribution and the cap on market revenues to address windfall gains in the energy sector,” said a senior government source.

Meanwhile, a Special Rapporteur on Racial Equality and Racism will be appointed by the Government to implement the new National Action Plan Against Racism.

Children’s Minister Roderic O’Gorman will bring the new action plan to the Cabinet. It will set out specific recommendations for government departments, local authorities and state agencies to address racism across society.

The Special Rapporteur will oversee implementation of the plan.

The Government will also publish an implementation plan for the first year. It will be the first such plan since 2008 and is being led by Joe O’Brien within the Department of Children.

Separately, the Government hopes to recruit an additional 1,000 new gardaí as part of a three-week-long major recruitment drive, Justice Minister Simon Harris will tell the Cabinet.

Currently, there are over 200 trainees in the Garda College, and four further tranches of 225 recruits will enter Templemore throughout the rest of the year. Almost 500 passed through the college in 2022, between those who attested or started their training.

The first candidates from the new campaign will be ready for interview by the Public Appointments Service (PAS) by July. The PAS will increase its current capacity to allow 400 interviews per month, the Cabinet will be told.