Filenews 29 November 2022
The Ministry of Finance has launched a public consultation on two bills aimed at imposing a windfall profit fee for 2022 on producers and suppliers of electricity from Renewable Energy Sources (RES) and adopting a temporary solidarity contribution imposed on activities in the crude oil, natural gas, coal and refinery sectors, based on European Regulation (EU) 2022/1854
The two bills are entitled "The Special Fee for Windfall Energy Profits Law of 2022" and "The Temporary Solidarity Contribution on Excess Profits in the Crude Oil, Natural Gas, Coal and Refinery Sectors Law of 2022".
According to an announcement by the Ministry of Finance, the 1st draft bill entitled "The Special Fee for Energy Windfall Profits Law of 2022" aims to impose a special fee on the windfall profits of the year 2022 of producers and suppliers of electricity from Renewable Energy Sources (RES) participating in Plans for commercial purposes with the final outcome of the Competitive Electricity Market (AAH) and / or RES Project Plans in the context of the Transitional Market Regulation with final ending in AHW, which resulted from the high energy prices of 2022.
The 2nd draft bill entitled "The Temporary Solidarity Contribution on Excess Profits in the Sectors of Crude Oil, Natural Gas, Coal and Refineries Law of 2022" aims to adopt in the provisions of national law the provisions of Council Regulation (EU) 2022/1854 of 6 October 2022 on emergency intervention to address high energy prices.
Articles 14-16 of this Regulation provide for the support of energy customers through a temporary solidarity contribution imposed on activities in the crude oil, natural gas, coal and refinery sectors.
The relevant documents have been posted on the website of the Ministry of Finance: www.mof.gov.cy.
Calculation by the suppliers themselves
According to the bill, the amount of the special fee is declared after a calculation made by the energy company itself, on a form approved by the Superintendent and obligatorily submitted by the energy company with the simultaneous payment of the special fee on March 31, 2023.
For the calculation of the fee, specific calculation formulas are provided for suppliers and producers operating in 2021 and 2022.
It is also noted that in the event that an energy company refuses, omits or neglects to submit a declaration and pay the special fee as provided for in this article or in case a special fee payable arises for any reason, the Tax Commissioner may certify the special fee at his discretion.
