Power suppliers windfall profit recovery plan proceeding

The energy ministry has just submitted to parliament an amendment for a mechanism designed to recover windfall earnings gained by electricity suppliers, initially from August 1 to October 31 this year.

The mechanism will be implemented repeatedly over additional three-month periods for as long as it is needed.

A universal windfall earnings level will be set as a benchmark. Earnings exceeding or falling below this level from month to month will be offset for each three-month period, according to the plan.

Electricity suppliers found to have benefited from windfall earnings will need to swiftly return 60 percent of amounts determined by the new formula, while payment of the remaining 40 percent will be expected at latter dates.

For the measure’s initial three-month period, electricity suppliers will need to return 60 percent of windfall earnings by December 23.

The energy ministry notes it has taken into account concerns raised by suppliers over factors shaping actual cost of electricity supply.