The excess profits energy producers make from the sale of electricity from their non-gas-fired powered stations will be subject to an additional levy for 6 months from 1 December. As electricity prices are linked to gas prices, the price of electricity, including that produced by nuclear power stations and renewables, is currently very high. This means that companies that produce electricity from wind farms or in nuclear reactors are currently making extremely large profits. These excess profits will now be subject to a levy, the money raised from which will be used to help reduced domestic consumers’ bills.
Speaking, in the Federal Parliament on Thursday the Federal Energy Minister Tinne Van der Straeten (Flemish green) said that new European rules will provide her with the legal framework for skim off energy producers’ excess profits and that she certainly intends to do so. In Belgium there is already a tax on nuclear energy. Ms Van der Straeten says that this will bring in around 700 million euros in 2022. However, the energy crisis and the huge increase in electricity prices that it has brought with it means that “there is an extra surplus of profits” in azddition to this, the Federal Energy Minister says.
Europe’s Energy Ministers also agreed on binding measures to reduce energy consumption. They agreed to a 5% reduction in peak time electricity consumption between 1 December 2022 and 31 March 2023.