New legislation to address windfall profits in the energy sector has been introduced by Minister for the Environment, Climate and Communications, Eamon Ryan.

The new Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill provides for a cap on the market revenues generated by non-gas generators in the wholesale electricity market between December 2022 to June 2023 inclusive, as set out in Council Regulation (EU) 2022/1854.

It is estimated that proceeds from the cap on market revenues are in the range €80 million to €150 million. These proceeds will be retained and used in the electricity sector to provide financial supports to households and businesses affected by high energy prices.

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The publication of this Bill follows the enactment of the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 last month. Companies that fall within the scope of this had to register with the Revenue Commissioners by 30 August, and will have to file their return and pay the 2022 Temporary Solidarity Contribution by 23 September 2023.

In total, it is expected that windfall gains across the Temporary Solidarity Contribution and the market cap can raise between €280 million and €600 million, dependent upon wholesale gas prices, to support householders and businesses, and climate actions.

Minister Ryan said: "I welcome the publication of this Bill. It will result in the collection of significant revenue that will be used to ease the impact of high energy prices on electricity consumers."

The Minister has also announced his intention to bring this Bill through the Houses of the Oireachtas when the Dáil resumes after the summer recess.

The Bill contains the timelines under which companies are required to make formal declarations and payments to the Commission for Regulation of Utilities (CRU). These are as follows:

• 30 November 2023 deadline for submission of formal declaration; and

• 31 December 2023 deadline for payment.