The European Union is considering capping the power-generation revenues with a 33% levy on surplus profits from fossil fuel companies on gas, coal, and oil refining companies.

This proposal, understandably, affects both Greek refiners, namely Hellenic Petroleum and Motor Oil, which recently announced record first-half profits thanks to high refining margins. For its part, the Greek government initially seems to agree with the Commission’s initiative, while of course waiting for the final form of the proposal.

According to Bloomberg news agency, the extraordinary levy will be temporary and will “burden” those companies in the oil, gas, coal, and refining sectors that show pre-tax profits, which are 20% higher than the average of the previous three years (2019-2021).

At the same time, the Commission is reportedly proposing to impose a cap on the profits of electricity producers from Renewable Energy Sources (RES) and nuclear plants. The maximum price is expected to be set at 180 to 200 euros per megawatt hour.

Interventions are also expected in the field of demand, with Brussels aiming to reduce overall consumption by 10%. In this context, in fact, a mandatory reduction of demand by 5% during peak hours is proposed.

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