Slovenia, Government presented a draft legislation that would impose a windfall tax on energy companies

, SEE Energy News

The Slovenian Government presented a draft legislation that would impose a windfall tax on energy companies in 2022 and 2023, which would be used to finance incentives for renewable energy production and measures for reducing electricity consumption during peak hours.

According to the draft, any profit from electricity produced in Slovenia and sold in the wholesale market at the price higher than 180 euros/MWh would be redirected to the state budget. Producers whose production costs exceed 180 euros/MWh would be exempted, as well as electricity produced at gas-fired power plants and facilities with installed capacity less than 500 kW.

A windfall tax would also be imposed on companies that produce and process crude oil and natural gas in Slovenia, causing them to pay a solidarity fee for 2022 and 2023, defined as the difference between the company’s profit in 2022 or 2023 and the average profit in 2018-2021 period, multiplied by a factor of 1.2. The vast majority of energy producers in Slovenia, which includes almost the entire energy sector, is partially or fully owned by the state. The windfall tax is linked to a series of measures designed to reduce demand in peak consumption periods by at least 5 % during the winter.

Slovenian Prime Minister Robert Golob emphasized that the money from taxes will be used to encourage renewables and finance measures to reduce the electricity demand during peak hours. At the end of September, PM Golob said that the fight against the energy crisis next year will cost Slovenia 5 billion euros.