The turquoise-green federal government has agreed to skim off excess profits energy companies made as a result of the war in Ukraine. Up to 40 percent of the difference with an average profit of the last four years is collected. The money will be invested in renewable energy and used for emergency measures, Vice Chancellor Werner Kogler (Greens) and Finance Minister Magnus Brunner (ÖVP) announced Friday.
Companies that have invested in renewable energy themselves receive a tax credit to lower the tax to 33 percent. The revenues of producers of sustainable electricity will also be skimmed off, they will receive a maximum of 140 euros per megawatt hour (MWh) from 1 December. 90 percent of the proceeds are collected – that’s how incentives should be preserved, Kogler explains.
Up to four billion turnover
“In normal times” he is not in favor of intervention in the market, but now it is a “matter of fairness”, Finance Minister Brunner confirmed. The period of validity here is until the end of 2023, the government expects two to four billion euros in revenue from the temporary measure.
“This skimming of the war-related casual profits and the particularly high returns is in line with the demands of the EU,” the vice-chancellor stressed. Since Putin’s “savage attack” on Ukraine, Europe has been embroiled in an energy war. As a result, gas prices are rising and, due to the so-called merit order, electricity prices are also rising. “That makes the treasury ring at energy companies, while others pay,” Kogler confirmed. Actually, the extra income is a “war dividend”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
