| 15°C Dublin

EU energy tax will help fund fuel subsidies, says Taoiseach Micheál Martin

Close

European Commissioner for Energy Kadri Simson speaks during a news conference after a European Union energy ministers meeting on high energy prices in Brussels yesterday. Photo: Yves Herman/Reuters

European Commissioner for Energy Kadri Simson speaks during a news conference after a European Union energy ministers meeting on high energy prices in Brussels yesterday. Photo: Yves Herman/Reuters

European Commissioner for Energy Kadri Simson speaks during a news conference after a European Union energy ministers meeting on high energy prices in Brussels yesterday. Photo: Yves Herman/Reuters

Taoiseach Micheál Martin said an EU deal on windfall energy company tax can raise “a couple of billion” for Ireland that would be an “additional help” for fuel subsidies.

He was speaking after EU energy ministers approved the tax in principle and Energy Minister Eamon Ryan suggested it could net €2bn toward winter fuel subsidies.

“It’s complex and that’s why one has to proceed cautiously in relation to the energy market and that’s why we will be taking a bit more time to look at the fundamentals of demand in terms of the relationship, for example, of gas with renewables in terms of the pricing issue,” the Taoiseach said.

The 27 EU energy ministers meeting in Brussels have agreed initial emergency measures aimed at reducing electricity costs for consumers, although they fell short of an agreement on a price cap for wholesale gas coming into the EU.

Plans include a reduction in energy consumption during peak hours to cut gas prices and redirecting excess revenues from non-gas energy providers toward struggling citizens and small and medium-sized enterprises.

Crucially for Ireland, the EU levy applied relates to where the revenue is made, and not where the provider is based.

“If they’re making the profit in Ireland, it’s Ireland that can levy the money,” a Brussels official said. “If you look at it conversely, you couldn’t have one company based in a member state and that member state getting all of the excess revenue as part of this plan.

The EU Commission estimated the levy at €140bn.

Daily Digest Newsletter

Get ahead of the day with the morning headlines at 7.30am and Fionnán Sheahan's exclusive take on the day's news every afternoon, with our free daily newsletter.

This field is required


Related topics


Most Watched





Privacy