Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Act 2023
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Market cap | ||
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8. (1) A producer, intermediary or trader shall each be liable to make a payment, calculated in accordance with this Act, in respect of the market revenue, obtained in the State by the producer, intermediary or trader each month during the relevant period from the sale of electricity produced from a class of fuel source referred to in section 7 , that exceeds the amount specified in subsection (2) in relation to that class of source (in this section referred to as the “market cap”). | ||
(2) Subject to subsection (3), the market cap shall be— | ||
(a) €120 per megawatt hour for electricity produced from the source referred to in paragraph (a), (b) or (d) of section 7 , | ||
(b) €180 per megawatt hour for electricity produced from the source referred to in paragraph (c), (f), (g) or (h) of section 7 , and | ||
(c) for electricity produced from the source referred to in paragraph (e), (i), (j) or (k) of section 7 , a cap per megawatt hour of the greater of— | ||
(i) €180 per megawatt hour, or | ||
(ii) the allowable cost of production for that calendar month plus an allowable margin of— | ||
(I) €15 per megawatt hour for electricity produced from the source referred to in paragraph (e) or (j) of section 7 , | ||
(II) €120 per megawatt hour for electricity produced from the source referred to in paragraph (i) of section 7 , and | ||
(III) €35 per megawatt hour for electricity produced from the source referred to in paragraph (k) of section 7 . | ||
(3) Where electricity is produced in a generating unit from more than one class of fuel source referred to in section 7 , the producer, intermediary or trader concerned shall be liable to make a payment in relation to the market cap applying to the greatest percentage of the fuel source used in the production of electricity in the unit in a month which shall, in that month, be the market cap applying to the sale of all the electricity produced in that unit. | ||
(4) In this section— | ||
“allowable cost of production” shall be calculated by the producer by applying the unit complex bids to the relevant quantity for the generating unit for the month concerned in megawatt hours, then dividing the resulting amount, stated in euros, by the relevant quantity for the generating unit for the month concerned in megawatt hours, to give an amount stated in euros per megawatt hour; | ||
“incremental and decremental priced quality pairs” shall be construed in accordance with Section D.4.4 of Part B of the Trading and Settlement Code; | ||
“no load costs” shall be construed in accordance with Section D.4.3 of Part B of the Trading and Settlement Code; | ||
“relevant period” means the period beginning on 1 December 2022 and ending on 30 June 2023; | ||
“start up costs” shall be construed in accordance with Section D.4.3 of Part B of the Trading and Settlement Code; | ||
“unit complex bids” means complex bid offer data submitted, by or on behalf of a producer, under Section D.4 of Part B of the Trading and Settlement Code, to the SEMO in respect of a generating unit. |