Energy reform includes seven new taxes levied at 6% on entire power generation

The Council of Ministers has approved a draft bill with tax measures to raise € 2.734 billion in 2013 and to halt in 2013 generation of the electricity tariff deficit. Its wording provides for the creation of seven charges or taxes.

These measures include a general tax on the sale of electricity and other specific taxes on renewable energy such as wind and solar thermal, nuclear waste, hydroelectric production, coal, gas and diesel for electrical power generation, among others.

In the case of renewable energy under special regime, preference will not be given to energy produced by the use of fossil fuels, such as solar thermal, when renewable sources are used during generation and feed-in tariffs cannot be charged for that energy.

However, biomass would be excluded from this measure as the wood used is sourced from forests cleared in order to prevent fires.

The so-called “green cent” tax will also apply to natural gas for consumption and electricity generation, as well as to coal, fuel oil and diesel used for electrical power generation. This new levy will have an impact of € 571.7 million on companies operating under ordinary regime (nuclear, hydroelectric, combined cycles, coal, etc….) and € 688 million for those under special regime (renewable and cogeneration).

The goal is to achieve additional revenue to eliminate the deficit and ensure sustainability of the system, both environmentally as well as in financial and economic terms.

According to government calculations in the review, not implementing the measures contained in this draft bill would result in the current tariff deficit doubling in 2015.