Energy companies will need to reshape their commercial policies as a result of yesterday’s ratification of legislation for extraordinary contributions including a mechanism, effective as of July 1, for collection of windfall profits earned by energy producers.
Though the extraordinary contributions energy companies will need to hand over to the state will be far lower than originally planned, the sum, estimated at between 300 and 400 million euros over a nine-month period, will, nevertheless, result in an outflow of earnings to be used by the government for support of its subsidies offered to consumers.
This sum to result from the tax concerns windfall profits earned from October, 2021.
Vertically integrated energy groups will now need to reassess their commercial policies, including discounts, fixed tariffs, installment-based payment arrangements for overdue energy bills, and punctual-customer bonuses, as the new measures will narrow their profit margins.
The windfall profit tax will be set at 90 percent while a price cap is planned to be imposed in the wholesale electricity market. The level at which this price cap is to be set remains unclear.