EU agrees to tax windfall profits of energy producers

Deputy Prime Minister Josez Sikela and European Commissioner for Energy Kadri Simson, during a press conference after the meeting between European energy ministers, in Brussels on September 30, 2022. © Yves Herman, Reuters

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European energy ministers met again in Brussels on Friday 30 September to painfully strive to reduce energy bills and reduce the risk of social crisis and business bankruptcies as the EU approaches. winter.

The Twenty-Seven notably validated the Commission's proposals aimed at recovering part of the “superprofits” of energy producers to redistribute them to consumers and reduce the demand for electricity.

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With our correspondent in Brussels,

Pierre Benazet

Companies that market or refine oil, coal and gas will be subject to

a European levy

on profits above the average of the past four years.

Called “

temporary solidarity contribution

”, it is actually a 33% tax which must be used to

amortize the bills of households and SMEs

.

The other

levy will hit

not the profits, but the turnover of electricity generators - with the exception of those who produce electricity with gas.

For the others, Brussels sets a maximum price of €180 per MWh.

Beyond this limit, the prices are considered excessive in relation to the cost price, so the turnover achieved will be paid back by the producers with a view to redistributing the income to the consumers, this is what is called here “ 

rent capture

 ”.

However, Brussels still does not have an agreement on the cap on the price of natural gas: the European Commission

proposes to cap only the prices of gas imported from Russia

.

Germany

, the Netherlands and Austria fear that a broader measure could drive suppliers away to other, more profitable markets.

But about fifteen governments, including France, Poland and Italy, want

a cap on all imports

, in order to also fight against inflation.

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