Profits of 2.3 bln go to subsidy
Excessive earnings of power companies have automatically returned to electricity consumers
More than 2.3 billion euros was directed straight from the wholesale power market to the Energy Transition Fund for subsidizing electricity bills in the first quarter of implementation of the mechanism for imposing a ceiling on electricity producers’ revenues.
The lion’s share came from renewable energy sources, whose total surpluses reached €1.116 billion (56%): €804 million from PPC, €235 million from Heron, €137 million from Mytilineos and €53 million from Elpedison.
Electricity producers PPC, Heron and Mytilineos generated a total of €316 million from the total amount of RES surpluses from the production of their green portfolio. The largest RES surpluses (€860 million) were generated by the portfolio managed by the Renewable Energy Sources and Guarantees of Origin Administrator (DAPEEP).
The government and the jointly competent ministries are launching a series of decisions in order to expand the range of funding sources since there is a firm commitment to continue supporting households and businesses for as long as the crisis lasts.
Immediate plans include the taxation of the surplus profits of the refining and natural gas companies – i.e. the two refineries (HELLENiQ Energy and Motor Oil) and the Public Gas Corporation (DEPA) – at a rate of 33%. Although the measure promoted by the EU has not been finalized at the European level, the government has reportedly also calculated the revenue it will derive from the imposition of an extraordinary solidarity levy for the profits of 2022. According to statements by Finance Minister Christos Staikouras, this is estimated to generate revenues of €300-400 million.
Energy Minister Kostas Skrekas has announced the taxation of the surpluses that may be generated for suppliers in the retail market, with the new model of pricing based on a forecast for wholesale costs that replaced the adjustment clause. Forecast “failures” can lead suppliers either to a loss, as was the case for example in August, or to a surplus, as in September.
