The government is preparing to introduce a windfall profit tax on electricity suppliers for earnings between August, 2022 and June, 2023, which is expected to rake in up to 275 million euros in tax revenue, calculations have indicated.

The energy ministry, now set to co-sign a joint ministerial decision that will enable the tax measure’s introduction, has received relevant financial data provided by electricity suppliers to determine if an existing tax formula shaped for the measure will need any revising as a result of the time that has elapsed since its establishment.

Under the current plan, the windfall tax formula will be applied in segments to calculate taxes covering an initial five-month period from August to December last year, and then over two successive three-month periods running from January to March, 2023 and April to June, 2023.

The tax measure could also be applied over one eleven-month period, but this would require a legislative revision.

If implemented in fragmented fashion, as currently planned, the tax measure is seen raising approximately 275 million euros, while, if applied over one continual period, the measure would raise roughly 250 million euros.

Electricity suppliers will be expected to make immediate payments covering 60 percent of any resulting windfall tax amounts, followed by the other 40 percent at latter dates.

Tax revenue raised through this extraordinary measure is planned to be injected into the country’s Energy Transition Fund.