Collecting more profits from green electricity will likely yield much less returns.

Collecting more profits from green electricity will likely yield much less returns.

The tax that energy producers have to pay on the profits they make from the electricity they generate from wind turbines and solar panels is far less efficient than expected. Minister Jetten (Climate and Energy) writes to the House of Representatives that the expected 1.8 billion euros for the state treasury will not be achieved in the remote possibility.

The tax was designed to attract excess profits from energy producers. Due to the energy crisis and the associated rise in energy prices, they earn a disproportionately large amount from the electricity they produce sustainably, that is, without oil and gas.

Since the production costs of this green electricity did not increase, the cabinet found it logical for companies to pay profit taxes above a certain cap. European energy ministers also appreciated such a “solidarity contribution”.

“Annunciation to the Citizens”

So in November Jetten still assumed the tax would bring in 1.8 billion euros. But now energy prices have fallen sharply again. “These significantly lower prices are good news for citizens and companies, who will see their electricity costs come down,” Jetten told the room.

But it also means that many producers’ profits are again below the ceiling. As a result, the minister expects the tax not to exceed 100 to 200 million euros.

He relies on the Central Planning Office’s latest estimate. However, this amount is also uncertain, as experience has shown that electricity prices can fluctuate sharply in a short period of time.

Solidarity surcharge for green electricity generation should be applied until 30 June and will be applied retrospectively from 1 December 2022.

Source: NOS