Minister Eamon Ryan says gas companies may have to make a solidarity contribution from excess profits

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Gas companies could be asked to make a "solidarity contribution" under measures put forward by EU energy ministers.

The bloc's various ministers met today to hammer out a united response to the energy shock from Russia's war on Ukraine, which has sent electricity and heating prices soaring.

Moscow’s invasion has seen the price of natural gas hit record levels, throwing the EU economy into deep uncertainty with all eyes on whether Russian President Vladimir Putin will cut off the energy flow entirely.

The discussion, according to Energy Minister Eamon Ryan, was "good," and he anticipated seeing results in "a matter of weeks."

Two recommendations in particular, according to him, are in line with the objectives of the Irish government.

One of them is a "solidarity payment," which is demanded from European oil and gas corporations that have achieved exceptional profits from the increase in energy prices.

The minister claimed that this money would be returned to homeowners and companies.

Ryan responded that it would include a legislated system that "would have to be delivered upon" across all of Europe when asked if gas firms would be required to make this amount.

He said that the payments would need to be paid quickly and efficiently.

In the coming weeks, Ryan added, the precise amount of the contribution gas firms would have to provide will be decided.

Due to the gas markets fixing the price, the Irish government also supports the concept of removing a portion of the surplus profits that businesses in the oil and wind sectors are making.

Because of the strong relationship between the market price of electricity and the price of gas in Europe, utilities that do not use gas are making a killing while businesses who must pay for gas struggle.

Ryan says he agrees with the commission's previous calls for a price restriction on Russian natural gas and the recycling of surplus cash back to individuals and companies.

This would be accomplished by loosening EU regulations on state rescues of businesses that suddenly face more onerous terms for financing as crisis fears grow.

Ursula von der Leyen, the head of the EU, encouraged member states to agree on a restriction on the price of Russian gas on Wednesday. Putin has warned that such a move would be "an absolutely dumb decision."

There is no time to waste, he added, adding that this coming autumn is "when we're really going to see the high costs taking effect, that's when we need the support, that's when we need to collect some of that money."