Tax strategy consultants are working out a plan to allow the government to impose unexpected taxes on energy companies.
It is understood that a policy similar to the one being introduced in the UK could raise €60m.
Irish proposals are now being shaped under a framework linked to the Tax Strategy Group, which advises on budgetary matters.
Italy and Spain both impose a 25 percent tax on energy utilities.
After the UK government performed a policy U-turn to introduce an unexpected tax, the details of its legislation were carefully scrutinized by civil servants in Merion Street. For example, a similar move here could raise €60m, which would allow an additional 65,000 households to be brought into the fuel allowance scheme.
Under the policy being scrutinized, energy companies could be tapped for an increased share of their profits but banned from paying customers a fee.
The fund will support the inflation relief planned for households in the September budget, including meeting the cost of record energy bills.
Proposals for similar unexpected taxes in the UK, Spain and Italy came amid public unrest over the bumper profits announced by some energy companies.
However, profitability across companies is mixed.
State-owned ESB, which in turn owns Electric Ireland, reported a sharp rise in profits in its most recent accounts for 2021, and SSE, which owns Airtricity, posted strong gains since the start of the energy spike last year. Profits are declared.
Profits at Board Guess Energy dropped last year, partly due to a power plant outage, while at least three providers, including Spanish energy suppliers Iberdrola, Bright Energy and Glopower, pulled out of the Irish market in the past few months, wholesale. Citing an increase in energy costs.
The Irish power pricing model means that providers who supply electricity to the grid from renewable energy are commanding strong income without large input costs, but companies who buy electricity wholesale or use gas and gas to generate electricity. Buying oil, they are over-squeezed.
Michael Martin said last week that the government would consider it.
“We will keep it under review. There are pluses and minuses.
“ESB is a state company and we take dividend from it. Dividend has been increased. ,
Taniste and Fine Gael leader Leo Varadkar are in favor of an unexpected tax, saying it would be logical at a time of unusually high profits.
Similarly, Green Party leader and Energy Minister Eamon Ryan has refused to rule out a multi-million-euro government levy on bumper profit-making power companies.
“We have to manage this until next autumn, and winter is going to be a particularly difficult period,” he said.
“So I will work with (Finance) Minister (Paschal) Donohoe and look into whatever measures may be needed to help further.”
The European Commission has given EU member states the green light to impose an unexpected tax on the “extraordinary profit of energy companies”.