Extraordinary contribution of 90% to electricity profits in Greece

An extraordinary levy of 90% on the profits of electricity producers is introduced in Greece, by a decision of the Ministers of Finance Christos Staikouras, Environment and Energy Kostas Skrekas and Deputy Minister of Finance Theodore Skylakakis, which determines the method of calculation and the procedure for its collection.

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

In particular, according to the decision, the contribution will be calculated per month, with the application of 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.

It is noted that the discounts given during this period to customers with a variable tariff (with an adjustment clause) will be deducted from the profits, as already announced. The amounts of electricity allocated with fixed tariff 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 Energy Regulatory Authority, which will inform the Ministry of Environment and Energy, as well as those liable.

Also, the levy will be imposed by decision of the Minister of Environment and Energy and will be collected by AADE in accordance with the Public Revenue Collection Code within three months from the notification of the act of determination.

It is reported that the revenues will be allocated to the Energy Transition Fund to finance subsidies on electricity bills.

Source: KYPE