A new windfall tax on non-gas electricity generators in the Republic of Ireland will help to protect households against rising costs, the Irish government has said.
Excess profits collected by companies beyond a capped amount will be used to support consumers.
The cap on market revenues will be set at €120 (£103) per megawatt-hour (MWh) for wind and solar and at least €180 (£155) per MWh for oil-fired and coal-fired generation.
The cap will be in effect from December until June 2023.
If electricity suppliers can prove they are passing on lower prices on revnues made in excess of the cap, those revenues will not be subject to the cap.
The change was introduced by Minister for the Environment Eamon Ryan at a cabinet meeting on Tuesday.
A temporary solidarity contribution, as set out in the European Council Regulation, will also come into effect.
“This has not been done to raise revenue for the State, for the general Exchequer,” Mr Ryan explained.
“It is to give us a pool of funds that will help us to take further measures when it comes to protecting people from energy costs.”
Mr 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.
