Amendment on power suppliers’ windfall profits

Amendment on power suppliers’ windfall profits

An amendment for the introduction of an emergency subsidy of up to 600 euros for energy consumers and an emergency levy on electricity producers was tabled in Parliament late on Tuesday.

The measures are part of a support package to offset soaring electricity prices recently announced by the government.

The subsidy will be given to households with a net income of up to €45,000 euros in 2020 that do not have fixed-rate electricity bills.

It will amount to 60% of the increase in electricity rates in the six months between December 1, 2021 and up to May 31, 2022, less discounts and state subsidies.

It will be paid directly into the bank account of eligible applicants, following the submission of a special application that will be available on the portal.

The emergency tax on producers will concern excess gross profits between October 1, 2021 and June 30, 2022.

After discounts and returns are deducted, these will be taxed at a rate of 90%.

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