Just today, the government presented its profit skimming from the energy companies as an initiative proposal in the National Council. The coalition partners from OMV, Verbund & Co want to get two to four billion euros. Finance Minister Magnus Brunner justified this somewhat vague estimate by saying that the energy market will continue to be subject to high price fluctuations in the coming months.
The aim of the measure is “to bring more justice to the scene of the fault,” said Vice Chancellor Werner Kogler. The war in Ukraine has led to a shortage of supply, especially for gas. “That makes some people’s coffers ring, while others pay to an extent that is no longer acceptable,” said the Vice Chancellor. “In truth, you could say that’s actually a war dividend.”
- ZIB 17:00: The government has presented a tax on excess profits:
criticism from the opposition
Part of the profits of oil and gas companies are to be skimmed off, while the revenues of electricity producers are to be capped (see chart). Specifically, the average profit of the four years 2018 to 2021 should be taken as the basis for oil and gas companies. If the current profit is more than 20 percent above this average, 40 percent of it should be skimmed off.
However, since corporation tax is still due on this profit, 65 percent of these profits will ultimately be levied, said Kogler. If companies can prove that they are investing in renewable energy, the levy drops from 40 to 33 percent. According to the Minister of Finance, OMV or the gas storage company RAG are affected here. However, companies that trade in fossil fuels, such as gas stations, are not included. In the case of companies generating or trading electricity, the revenue should be capped at 180 euros per MWh. This maximum revenue drops to 140 euros/MWh if no investments in renewable energies can be proven. 90 percent of the proceeds that exceed 180 or 140 euros are then skimmed off.
Criticism of this measure comes from the electricity industry because they take too little account of market conditions. In a water-poor year like this year, the electricity suppliers themselves would have to buy electricity from the exchange at a price well above this 180 euros in order to guarantee security of supply. In addition, an industry expert misses the steering effect of this levy.
Criticism has also come from the opposition, the chamber of labor and the trade union federation. The SPÖ vice club boss Jörg Leichtfried criticized the proposal as “pure profit gift” for energy companies. “With an estimated excess profit of OMV of six billion euros in 2022, OMV will have five billion more, and the association can keep almost the entire excess profit for 2022 because the tax will only take effect from December 1st.”
The affected companies themselves, above all OMV and Verbund, reacted cautiously. You first have to analyze the text of the law in detail, details are still missing. (hn)
Source: Nachrichten
