The details of a windfall profit tax imposed on Greek power producers will remain unchanged, for the time being, despite a political agreement at the Council of EU Energy Ministers last Friday exempting natural gas-fueled power stations from a price cap.

Greek officials estimate the current formula for recovery of windfall profits earned by power producers has accumulated 2.6 billion euros from July until the present, sources informed, adding producers have sufficient leeway.

The sources contended the Greek model’s principles should not change as they are based on the assumption that gas-fueled power stations purchase gas that is not based on TTF hub prices, but at lower prices, while, at the same time, their offers submitted to the day-ahead market take into account higher TTF prices.

Details on how last Friday’s agreement by the EU-27’s energy ministers will be implemented remain to be seen. An official document providing this information will soon be released, possibly this week.

According to the agreement, a ceiling of 180 euros per MWh will be implemented on the earnings of all power producers of all technologies (RES, nuclear, hydropower without storage, lignite, biofuels and geothermal) except natural gas. This limit will apply until June 30, 2023.

The EU energy ministers also agreed on a solidarity tax for fossil fuel producers, which, sources noted, will be set at a rate of 33 percent for windfall profits in 2022.

This extraordinary tax will not generate tax revenues until 2023, once corporate groups have announced their results for 2022. The Greek government plans to impose this solidarity tax on refineries, which have expressed opposition.