Greek power firms face tax bill from windfall profits on gas price hikes

Motor Oil (Hellas) Corinth Refineries

11/05/2022 07:59

ATHENS, May 11 (Reuters) - Greek energy firms are facing
hefty supplementary tax bills after the country's energy
ministry said on Wednesday its regulator had identified windfall
profits of around 590 million euros ($620 million) stemming from
soaring energy prices.
    European gas prices hit record levels last year and have
remained at or near historic highs amid rising concerns over
supply disruptions after Russia, Europe's top supplier, invaded
Ukraine.
    With Greek households under pressure from soaring inflation,
the government tasked the energy regulator with identifying
windfall profits based on firms' gross profit margins stemming
from the gas price rises.
    The regulator estimated such profits - which the government
has said it plans to tax at 90% and use those proceeds to offset
consumers' higher energy bills - at around 590 million euros
between October and March.
    The final taxable sum will strip out any discounts that
Greek suppliers have themselves offered to consumers, the energy
ministry said.
    Greece, which imported more than 40% of its gas from Russia
last year, has spent more than 4 billion euros in subsidising
power bills for households, businesses and farmers since last
year. It announced an additional support package of 3 billion
euros this month.
   ($1 = 0.9484 euros)

 (Reporting by Angeliki Koutantou; Writing by Renee Maltezou;
editing by John Stonestreet)
 ((renee.maltezou@thomsonreuters.com; +30 210 3376439; Reuters
Messaging: renee.maltezou.reuters.com@reuters.net))