Cap on electricity firms' revenue signed off by Cabinet

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Cap on electricity firms' revenue signed off by Cabinet
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The Government has agreed to place a cap on all market revenues of non-gas electricity generators

The cap on market revenues will be set at €120 per MWh for wind and solar.Where electricity suppliers can show that revenues in excess of the cap are being passed on through lower prices to consumers, those revenues will not be subject to the cap.The Government has also decided to implement the temporary solidarity contribution, as set out in the European Council Regulation, to companies active in fossil fuel production and refining for the years 2022 and 2023.

Minister Eamon Ryan said given the volatility of gas prices, the level of proceeds from the cap on market revenues and the temporary solidarity contribution cannot be estimated with any certainty. Proceeds from the cap on market revenues are expected to be collected in 2023, with proceeds from the temporary solidarity contribution to be collected in 2023 and 2024.

— RTÉ News November 22, 2022 The Taoiseach said earlier that there was a very comprehensive agenda before the Cabinet, which deals with many issues including energy, policing and housing.Asked about the proposed windfall tax on the profits of energy companies, Mr Martin said that it will be significant.

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