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Parliament approves bill on taxing electricity surplus profits

The Greek Parliament approved on Wednesday an amendment to tax surplus profits of electricity suppliers.

According to the regulation, surpluses are defined as the difference between the “Reasonable Average Retail Price” to be determined by ministerial decision based on costs and a reasonable profit margin, and the actual price that suppliers charged their customers.

When the arrangement is first implemented, the excess income for the period from August 1st to October 31st will be recovered, and thereafter it will be recovered quarterly.

In the first phase, 60% of the surplus will be paid and the remaining 40% at the end of the recovery mechanism.

All revenues will be channeled into the Energy Transition Fund to finance energy bill subsidies.

According to daily imerisia, the state is expected to collect around 400 million euros in the first stage.

The Environment & Energy Ministry’s bill was reoirtedly approved in plenary by the votes of ruling New Democracy alone, and it was rejected by main opposition SYRIZA-Progressive Alliance, the Communist Party of Greece, and MeRA25. PASOK-KINAL and Greek Solution voted ‘present’ during the proceedings.

Environment & Energy Minister Kostas Skrekas said “we envisage the extension of this mechanism for taxing surplus profits in the supply sector too.”

He added that Greece has created a mechanism for taxing surplus profits in the production sector, which has so far yielded about 2.5 billion euros, which have been returned to electricity bills.

For the first time after the abolition of the adjustment clause, he added, “we have obliged suppliers to declare electricity prices for the following month on the 20th of every month.”

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