#Carbon Charge for Energy Companies in #Ireland Removed

The Irish Government has repealed, with immediate effect from Friday, the multimillion euro carbon levy on fossil fuel-based energy generation, which had allowed energy companies to increase the wholesale electricity price.

The policy implemented in 2010 was designed to prevent the operators of electricity generation plants from making massive windfall profits by including a notional “opportunity cost” of EU carbon credits in their wholesale prices, when they actually received these credits for free.

The levy had raised an estimated €75 million for the exchequer in 2011 which will now be required to be raised from other sources.