Windfall Tax on the Excess Profits of Energy Companies: Motion [Private Members]
Dail Éireann — 2026-09-30
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Catherine Ardagh (FF), Dublin South-Central

I move amendment No. 1:
To delete all words after "Dáil Éireann" and substitute the following:"
notes that the Government:
— remains deeply concerned about the conflict in the Middle East and its impact on energy prices;
— is acutely aware of the impact on households and businesses of the recent increases in the cost of energy, and is actively monitoring the current geopolitical situation and its impact on costs;
— has taken significant action to help households and businesses with the cost of fuel and energy by introducing one of the most comprehensive support packages in the European Union (EU); and
— affirms that energy affordability is a priority, with the Energy Affordability Action Plan to be submitted to Government in the coming weeks and consideration ongoing of supports for household; and
further notes that:
— the ongoing conflict in the Middle East has caused international wholesale gas prices to increase which has a significant knock-on impact on retail electricity prices;
— supplier hedging strategies have and are continuing to help cushion households from the full volatility in international wholesale energy markets;
— price setting by electricity suppliers, including standing charges is a commercial and operational matter for the companies concerned and each such company has its own different approach to pricing decisions over time, in accordance with factors such as, their overall company strategic direction and costs such as, staffing, tax, and infrastructure;
— the Government understands that any price increase can be a challenge for households and businesses;
— for that reason, the Government has taken action to help households and businesses with the cost of fuel and energy;
— extensions to the package of temporary fuel supports have brought the total cost of these measures to over €1.4 billion and are helping to reduce the cost burden at the petrol pump;
— successive budgets have provided targeted support to help households with energy costs;
— in Budget 2026, key measures included an extension until 2030 of the 9 per cent Value-Added-Tax rate currently applied to gas and electricity bills, enhanced social protection payments, including an increase to the Fuel Allowance weekly rate and an expansion in the eligibility rules, and a record allocation of €640 million for the Sustainable Energy Authority of Ireland (SEAI) retrofit schemes;
— at the same time, additional retrofitting supports have been rolled out to further help households, capital expenditure of over €2 billion has delivered over 287,000 home energy upgrades from 2019 to the end of August 2026, including over 39,500 fully funded upgrades for households at risk of energy poverty under the Warmer Homes Scheme;
— in January this year, we expanded and reformed retrofitting schemes to ensure more homeowners can receive grants, the new measures include, increased attic and wall insulation supports, an increased grant of €12,500 for heat pump installation, and new grants for windows and doors;
— almost 89,000 applications have been processed to the end of August 2026, an increase of 116 per cent on the same period last year;
— this year to the end of August, 2026, almost 42,000 homes have been upgraded through SEAI schemes, including over 6,800 homes at risk of energy poverty under the Warmer Homes Scheme;
— the latest Eurostat report, (comparing electricity prices across the EU), outlines that Ireland had the fifth highest for household electricity prices in the second half of 2025, when adjusted to take account of the 'Purchasing Power Standard' (i.e. practical affordability – taking account of household income);
— the four biggest energy retailers have confirmed that hardship funds and focused measures are in place for any customers in difficulty;
— switching energy supplier or plan could save the average electricity and gas customers up to €700 and €400 (respectively) annually;
— protections are in place for customers experiencing difficulties in paying their bills and households struggling with their bill, are strongly encouraged to engage with their supplier;
— the Department of Social Protection can also provide support through the Additional Needs Payment to help households meet expenses, including difficulties with fuel bills;
— the Government has also established the National Energy Affordability Taskforce (NEAT) to identify, assess and implement measures that will enhance energy affordability for households and businesses, while delivering key renewable commitments and protecting security of supply and economic stability;
— the NEAT has noted a wide array of interventions, including those such as a market's revenue cap and/or solidarity contribution, which in a previous form were based on EU-wide regulations and decisions and will continue to consider all potential interventions and developments in this regard;
— the Government will continue to monitor and assess the situation in relation to energy costs;
— the NEAT continues to work intensively on an Energy Affordability Action Plan to be submitted to Government in the coming weeks; and
— the Government will also make a range of relevant decisions as part of Budget 2027.".
I speak on behalf of the Government on the Social Democrats' motion calling for the introduction of a market revenue cap and a temporary solidarity contribution on the excess profits of energy companies. The Government proposes to reject this motion and amend it. The conflict in the Middle East and in Ukraine have caused significant disruption to the global energy markets that we all know. The Government recognises the pressure that resulting high energy prices are placing on Irish consumers and businesses. We are actively monitoring the current geopolitical situation and its impact on costs to households and businesses. The Government understands that any price increase can be a challenge for households and businesses. As a result, we have been proactive and introduced a series of measures to reduce fuel prices. Further measures are under consideration by the national energy affordability task force and as part of the budgetary process. Specifically on fuel, the package of Government support measures, which now totals over €1.4 billion, is helping to reduce the cost burden at the petrol pump and assist key sectors such as agriculture and haulage that are critical to keeping our economy moving.
A range of measures in budget 2026 also supported households with energy costs, including an extension until 2030 of the 9% VAT rate currently applied to gas and electricity bills and enhanced social protection payments, including an increase to the fuel allowance rate and an expansion in the eligibility, as well as a €400 income tax disregard for households involved in micro-generation, which was extended for a further three years until the end of 2028.
The best way of insulating our economy and society from fuel price shocks is to reduce our dependence on fossil fuels. That is why we are investing record amounts in retrofitting, both through part- and fully-funded schemes. Budget 2026 provided a record allocation of €640 million for the Sustainable Energy Authority of Ireland's residential and community grant schemes, allowing us to target 73,000 home energy upgrades this year alone. In January this year, we expanded and reformed retrofitting schemes to ensure more homeowners can receive grants. The new measures included increased attic and wall insulation supports, an increased grant of €12,500 for heat pump installation and new grants for windows and doors. Simple upgrades like attic insulation, cavity wall or external wall insulation can reduce heating bills by up to €230 annually. A full home retrofit can lead to savings of €750 to €1,120 per year on energy costs.
Almost 89,000 applications have been processed to the end of August 2026.
As of yesterday, the Minister, Deputy Darragh O'Brien, and the Government have also approved an expanded range of grants for people, including a new €2,000 boiler scrappage grant, a new grant for battery storage and expanded access to certain measures for warmer home eligibility applicants and those in rental accommodation scheme, RAS, tenancies. These measures are aimed at making it easier and more accessible for people to reduce their energy bills. This compares with 41,100 applications received by the end of August last year. This is a 111% increase year on year and follows changes to the schemes the Minister introduced earlier this year. Capital expenditure of more than €2 billion delivered more than 287,000 home energy upgrades between 2019 and August 2026, including more than 39,500 fully funded upgrades for households at risk of energy poverty under the warmer homes scheme. As of the end of August 2026, the domestic solar PV scheme has supported more than 21,000 homes to install solar PV panels this year and more than 35,000 applications have been received. This is a 72% increase in applications year on year and indicates that the scheme is working extremely well and that householders are recognising the benefit of investing in solar PV.
A number of protections are in place for customers experiencing difficulties paying their bills. Anyone who is struggling with their bill is strongly encouraged to engage with their supplier. Suppliers have hardship funds and focused measures in place for any customers who find themselves in difficulty and will not disconnect customers who engage with them. In addition, the Department of Social Protection can also provide support through the additional needs payment to help households meet expenses, including those who face difficulty with fuel bills.
The national energy affordability task force, which the Minister chairs, will have a key role in identifying measures to enhance energy affordability. This cross-government task force was established to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewable commitments and protecting security of supply and economic stability. The task force is working extensively on the energy affordability action plan to be submitted to the Government in the coming weeks. This action plan will be focused on short, medium and longer term measures to support households and businesses to meet their energy costs.
The energy affordability action plan includes the identification of measures, such as a market revenues cap, which, in a previous form, were based on the 2022 EU Council Regulation (EU) 2022/185. Ireland would engage constructively on the development of proposals from the European Commission on a potential EU-wide windfall tax or levy if such proposals are brought forward, as outlined by Deputy Whitmore. It continues to be the Government's view that tackling the energy crisis in a co-ordinated way among EU member states is preferable, given the interconnectedness of the EU energy markets. Governments across Europe are rightly attentive to developments in energy markets and their impact on households, businesses and the wider economy. The Tánaiste and Minister for Finance, in the context of Ireland's Presidency of the Council of the EU, received a joint letter from six EU member state finance Ministers regarding a windfall levy on exceptional profits made by oil companies as a result of heightened prices due to the conflict in the Middle East. This item was put on the agenda by the Tánaiste and discussed as part of the recent informal ECOFIN meeting in Dublin. As a result, the Tánaiste requested the European Commission to reflect on this discussion and report back on the issue in the upcoming ECOFIN meeting in October.
The Government introduced substantial supports during the volatile period in April. They are timely and necessary, and we will continue to monitor the situation closely. Supporting those most vulnerable in society must remain a priority and the Government will continue to do 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 cleaner and cheaper energy in the long term. I reiterate that the Government rejects this motion. I propose the Government countermotion, which more accurately reflects the reality of the situation.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-09-30/debate/main
Retrieved: 2026-10-05T01:00:59+00:00
Sitting date: 2026-09-30