Windfall Tax on the Excess Profits of Energy Companies: Motion [Private Members]
Dail Éireann — 2026-09-30
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Michael Cahill (FF), Kerry

There is no doubt that households and businesses are under enormous pressure from rising energy costs. Wholesale electricity prices increased by almost 10% in August alone, significantly higher than they were a year ago. The international situation, in particular the conflict in the Middle East, is having a direct impact on global energy markets and, ultimately, consumers in Ireland.
The Government has already put significant supports in place. The 9% VAT rate on gas and electricity has been extended. The fuel allowance has increased to €38 per week. Eligibility for the working family payment has been expanded. The fuel allowance season was extended by four weeks this year. There has also been substantial investment in energy efficiency. Budget 2026 provided a record €660 million for retrofitting, while more than 287,000 houses have received energy upgrades since 2019.
We cannot be complacent. The issue raised by the Social Democrats is a legitimate one. When energy companies are benefiting from extraordinary market conditions, we need to examine whether the State is capturing an appropriate share of these gains and whether they can be used to protect consumers. Ireland has already demonstrated that such mechanisms can raise significant revenue. The previous temporary solidarity contribution and market revenue cap raised a combined €456 million.
At the same time, we have to be careful about the design of any new measure. Ireland operates in the interconnected European electricity market and the position of the Government is that a co-ordinated EU approach would provide a more effective and level playing field than individual member states acting separately. As a Government backbench TD, I believe it is important that we continue to keep every available option under review, including mechanisms to address extraordinary profits where they arise. The national energy affordability task force is currently working on an energy affordability action plan and the Government has indicated that further decisions will also form part of the Government 2027 process.

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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