The European Commission wants to tax the extra profits of electricity companies for gas to invest in renewables

  • 50

The energy crisis that Europe is experiencing, aggravated by the war in Ukraine, has made the EU consider changes that it had previously rejected, such as the decoupling of the price of gas electricity. Now, the European Commission is going to propose another measure that it had not considered addressing: tax extraordinary profits that energy companies obtained as a result of the increase in gas prices in recent months, as reported by Reuters.

The intention of the Commission is that the money obtained with this tax invest in renewable energy and energy saving measuressuch as aid to reform buildings and make them more efficient, and thus reduce the energy dependence of the European Union on fossil fuels.

Just a few months ago, the Government of Spain already tried tax the profits that energy companies had obtained as a result of gas price increases, but finally reduced the measure because it faced strong opposition from companies in the sector. What Europe is proposing now is similar, although the Executive of Pedro Sánchez thought of it as a measure to reduce the price of the electricity bill and the EU sees it mainly as a way to move towards its energy independence through renewables.

a national tax

The sources consulted by Reuters indicate that the European Commission’s plan is not to introduce a tax throughout the EU, but to enable legal mechanisms so that the 27 member countries pcan introduce this levy at the national level without infringing the norms community.

The governments of almost all EU member states, including Spain, have already implemented extraordinary measures to try to reduce the impact of rising gas prices on household electricity bills, mainly through exemptions taxes and subsidies. The Commission states that part of the proceeds from this tax also could go, in part, to support affected consumers and industries due to high electricity prices.

This proposal is included in climate change policies that the European Union is currently negotiating with the member countries and their Parliament, and will be presented publicly next week. Until then, the draft seen by Reuters this week could change.

Image | Anton Romko

The energy crisis that Europe is experiencing, aggravated by the war in Ukraine, has made the EU consider changes that…

The energy crisis that Europe is experiencing, aggravated by the war in Ukraine, has made the EU consider changes that…

Leave a Reply

Your email address will not be published.