Energy prices: Creg wants to tax up to 70% on excess profits for gas-fired power plants

Should the excess profits of energy producers be taxed? The rise in electricity and gas prices since the beginning of the Russian-Ukrainian crisis has enabled some suppliers to reap significant profits.

CREG suggests considering profits of gas-fired power plants in excess of €100 per megawatt and per year as excess profits and imposing a tax of up to 70%, in order to maintain control of energy prices. On Saturday, as more and more families struggle to pay their bills.

Within three months, Engie/Electrabel generated more than half a billion euros in profits through its nuclear power plants. According to CREG’s calculations, gas power plants are also going through a good period.

This is why CREG is proposing a tax on excess profits for gas-fired power plants, which will apply as long as profits remain exceptionally high. A situation that should continue until 2024.

Another option proposed by the commission is to link the excess profits to the Capacity Bonus Mechanism (CRM), which should ensure the security of supplies in the country after five of the seven nuclear reactors are closed. This link should prevent gas-fired power plants from combining their excess profits with CRM support from 2025.

This report came to MPs as the Energy Secretary prepares an unexpected tax proposal. On our antennas, the co-chair of Ecolo announced a plan for July. At the beginning of the week, the Socialists raised the possibility of imposing a tax targeting the excess profits of energy producers to support the purchasing power of citizens.