Suppliers’ windfall earnings recovery formula before vote

The energy ministry is striving to soon issue – definitely ahead of the country’s May 21 legislative election – a joint ministerial decision, along with the finance ministry, providing the details of formula for the recovery of windfall profits earned by electricity suppliers over a five-month period from August to December in 2022.

A joint ministerial decision is needed so that the recovery mechanism, legislated by the energy ministry last November, can be implemented.

The energy and finance ministries have finalized their text co-authored for the joint ministerial decision, which includes a supplier earnings cap of 25 euros per MWh, sources informed.

This earnings cap, to subject any excess amounts earned by electricity suppliers to the windfall recovery mechanism, was adopted by the two ministries following a proposal made by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Once the overall procedure leading to the introduction of the recovery mechanism has been completed, no political decisions will be needed for its extension into 2023 as the measure will have been largely standardized. Its implementation ahead of the May 21 legislative election promises to safeguard the measure should the election fail to produce a new government.