Energy firms: The decision to tax excess profits has been published

The method of calculation and the procedure for collecting the extraordinary contribution of 90% on the profits of electricity producers is determined by the decision of the Ministers of Finance Christos Staikouras, Environment and Energy Kostas Skrekas and Deputy Minister of Finance Theodoros Skylakakis.

The levy is imposed for the period from October 1, 2021 to June 30, 2022, as the new framework has been implemented since July, which established a ceiling on the revenues of power producers per technology.

In particular, according to the decision:

-The contribution will be calculated per month, applying a rate of 90% on the positive difference of the Gross Profit Margin between the month of examination and the same month of the previous year.

– As already announced, the discounts given during this period to customers with a variable billing (with an adjustment clause) will be deducted from the profits. The amounts of electricity allocated with fixed billing contracts (without clause) are also deducted.

-The amount of the levy for each producer will be determined with the methodology defined by the decision by the Regulatory Authority for Energy which will inform the Ministry of Environment and Energy, as well as those liable.

– The levy will be imposed by decision of the Minister of Environment and Energy and will be collected by the Independent Authority for Public Revenue-AADE in accordance with the Public Revenue Collection Code within three months of notification of the act of determination. The proceeds will be allocated to the Energy Transition Fund to finance subsidies on electricity bills.