CREG develops digital platform for excess tax on electricity producers: “Important first step” | Energy prices

The excess profit tax was created to make the energy crisis more bearable for consumers. For example, gas and electricity prices have skyrocketed since the Russian invasion of Ukraine. That was certainly the case in the autumn of 2022. Energy producers, on the other hand, benefit from those excessive prices and make extra profits.

For that reason, the government decided to tax all profits above a ceiling of 130 euros per megawatt hour. The intention is to use that money to finance support measures for consumers.

It is up to the CREG to calculate the excess profit tax and to make a proposal. The energy regulator does this on the basis of a statement from the producers involved. This means that the tax will be levied via a declaration and that the companies will therefore have to calculate how much tax they owe. For the period from 1 August to the end of December 2022, the CREG has developed a digital declaration platform. “An important first step”, it sounds.

The declaration by the power producers must be made before the end of April. In concrete terms, the tax applies to operators of nuclear power plants, wind turbines, solar parks and geothermal, biomass and waste plants. For the sake of clarity, these are units with a capacity of more than 1 megawatt, which corresponds to approximately 3,000 solar panels or one large wind turbine. Private individuals with solar panels are therefore not involved.

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