The State Council seeks clarification of the bill to impose an excess tax on electricity producers.
The excess profit tax subtracts all profits of traditional electricity producers above 130 euros per megawatt hour, from August to June next year. In addition, there will be a separate cap of €180 per MWh for electricity generation from biomass, biogas and waste. Where production costs are very high, such as in old wind farms, the ceiling can be even higher. The proceeds should be used to finance the energy measures that the federal government has adopted to help families get through the winter.
The measure has long been debated and tax experts doubted that the measure did not conflict with European rules. The federal government was convinced of this, which is now not denied by the Council of State, which has issued an urgent opinion on the regulation.
The Council of State asks that the text be better motivated here and there, because the rule with a ceiling of 130 euros per MWh is more stringent than the European proposal of 180 euros per MWh. The Council warns that the general interest and the financial interest of producers must remain in balance.
Deadline: December 1st
The government refers to a study by energy regulator Creg, which calculated that a few years ago electricity producers could expect a maximum price of €80 per MWh as the maximum price for their electricity. The federal government has added another fifty euros to determine the ceiling. But the Council of State wants the government to give better reasons because fifty euros is a reasonable margin.
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Equally, the Council calls on the government to provide better reasons why for nuclear power plants the current revenue distribution levy of up to EUR 130 per MWh is combined with an excess profit tax for higher amounts. Also in this case, a balance must be maintained between the general interest and the interest of the producers themselves, warns the Giunta.
Better motivation is a classic in the recommendations of the State Council. In this case, the wording of the law is very precise. Electricity producers should immediately attack the excess profit tax. If they are right, there will be another hole in the federal budget. But there is little time. The government wants the regulation to be published in the Staatsblad by 1 December.
