A joint ministerial decision needed from the energy and finance ministries so that RAAEY, the Regulatory Authority for Waste, Energy and Water, can proceed with a formula taxing any windfall earnings accumulated by electricity suppliers since August, 2022, when emergency measures were introduced in the retail electricity market, is close to being finalized.

The recently re-elected conservative New Democracy party’s government had planned to implement the tax measure prior to the country’s recent two rounds of general elections, in May and June, but election-related interferences delayed the plan.

At this stage, it is not clear if the tax measure’s planned duration, from August to December, 2022, will be maintained or extended to also cover part of 2023. Related legislation for the original five-month period has been ratified. A legislative revision would be required if authorities decide to extend the tax measure’s duration.

A longer windfall taxation period would ensure a fairer balance of amounts electricity suppliers may need to pay.

A 25-euro per MWh upper limit subjecting supplier earnings beyond this level to the windfall tax had been established prior to the elections and seems unlikely to be changed.