EU agreement on tax on excess profits and electricity savings

2022-09-30

The regulation, proposed this month by the Commission and which this Friday received the political endorsement of the 27, provides for a 33% tax on the excessive profits of fossil fuel companies, to be converted into a “solidarity contribution” to be redistributed to the most vulnerable, a ceiling on the profits of low-cost (renewable) electricity companies, and plans to reduce electricity consumption, voluntary (10% for general demand), and mandatory (5% in ‘peak hours’) .

“Wake up! Ministers reached a political agreement on measures to mitigate high electricity prices: mandatory reduction of electricity demand, limitation of market revenues of infra-marginal electricity producers and solidarity contribution from fossil fuel producers”, announced the current Czech presidency of the EU Council.