Extraordinary tax on power supplier windfall earnings

The energy ministry is preparing an amendment for an extraordinary tax of 90 percent on any windfall earnings gained by electricity suppliers since August, which it expects to submit to parliament by the end of November, sources have informed.

This extraordinary tax will be imposed on any windfall earnings made by electricity suppliers between August, 2022 and November, 2022.

Excess earnings will be calculated based on a reasonable monthly electricity supply price to be set for all companies. Earnings exceeding or not reaching resulting levels from month to month will be offset and the net sum will be subject to the 90 percent windfall tax.

This measure comes in addition to a number of other extraordinary tax measures introduced in the energy sector as the government seeks to raise revenues to ensure the continuation of electricity bill subsidies and safeguard state budget resources.

Officials are already moving ahead with another extraordinary tax of 90 percent on windfall earnings of electricity producers between October, 2021 and April, 2022, the aim of this measure being to raise 460 million euros.