By Paul Homewood
From Bloomberg:
Germany has laid out plans to recover 90% of income from some clean power plants as the government seeks funding for a consumer support package.
The government is planning to cut income by more than 130 euros a megawatt-hour for solar, wind and nuclear, according to a draft law seen by Bloomberg News. Politicians are trying to reclaim some of the profits that companies like RWE AG are making from high electricity prices.
A surprise tax will be imposed on electricity producers based on the fuel they use. Lignite plants will be taxed on income over €82 per megawatt hour and oil plants above €280. These measures will be in place for 10 months, starting from September 2022, until the end of June 2023, and can be extended until the end of 2024.
Germany launched a 54 billion euro package on November 22 to limit gas prices for companies and households from next year with more going for electricity. Aid for the bills will be partly financed from the surprise tax, from which the government is expected to raise double-digit billions of euros, according to officials.
The proposed rate is lower than that of the European Commission of €180 per megawatt hour. Manufacturers of renewable generators in Germany have warned that such a tax would prevent the investments needed to help the country phase out imported fossil fuels.
The more than 200-page legislation proposal, which is expected to pass the cabinet on Friday, has drawn widespread criticism from energy lobbying groups. Andreas Jung, a lawmaker from the opposition Christian Democratic Party, said the tax would “strangle” renewable energy companies because they have invested so much money in new technology.
The law is expected to be passed by the senate on December 16 to take effect on January 1.
It looks like Germany is following the UK measures announced last week, although the rates are variable.
I literally had to laugh when I heard the renewables lobbyists complain that a surprise tax would discourage investment. If wind farms cannot make a profit at 130 euros/MWh, then they are clearly not the cheap alternative we have been told.
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