Electricity producers will likely have to pay windfall fees to sell it. The Sete approved an amendment to the Energy Law that introduces an upper limit on electricity prices for producers, the so-called capping. The House of Representatives approved it last Friday. The bill will now be sent to the president for sigture.
The state plans to collect about 80 billion crowns a year in taxes. They are designed to compensate for high energy prices. The levy should already apply to electricity produced from 1 December of the current year until the end of next year. It will be 90 percent of the difference between the selling price and the statutory price per megawatt-hour. The maximum prices for electricity producers will vary depending on the source and should also guarantee a reasoble profit. The Energy Regulatory Authority will be responsible for administering the levy and the Fincial Authority should assist it in its selection.
The amendment, as approved, will also allow the government to impose caps on electricity and gas prices, even for large companies. The form of the price cap for these companies will be determined by the Cabinet of Ministers in its resolution. It will have to comply with state aid rules and is subject to approval by the European Commission.