On the paths of Greece, Berlin: Examines the taxation of excess profits in electricity companies

To imposing a ceiling on electricity prices for households and industry is being launched by the German government to bear the brunt of increases in energy costs. According to a document from the Ministry of Economy of Germany that came into his possession Reuters, Berlin is considering the taxation of surplus profits in the country’s electricity companies, to subsidize the cap and stabilize the grid.

If implemented, this project will receive parallel funding from the €200 billion support package announced in September by the Soltz government. It is recalled that this package aims to support households and businesses to cope with rising energy prices.

The draft does not indicate the exact limit, but it is reported that it will have a similar form to the “brake” that has been announced for natural gas in the country. But unlike the one presented a few days ago, there will be no lump sum payment to cover a month’s bills this year.

In the framework of the plan, Berlin probablyi to proceed with a deduction of 90% of the excess profits (those that exceed production costs). With regard to spot prices, i.e. the next day’s market, the tax will be applied retroactively from March, while for future prices it will be applied from December.

The plan will be presented to Germany’s cabinet on November 18 and notes that electricity generation from coal, natural gas and biomethane will be excluded from the measures due to high production costs.

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