Law 155/2020 – “windfall tax” imposed on natural gas suppliers to domestic customers
“windfall tax” imposed on natural gas suppliers
The new energy law adopted by the Romanian Parliament introduces a 90% tax on the difference between the actual purchase price and the price imposed prior to market liberalization, as a regulated price. Thus, the taxation scheme will apply only for the quantities of natural gas that have a purchase price of less than 68 lei / MWh. This "windfall tax" contributes to the establishment of a special fund intended exclusively for the protection of vulnerable consumers of natural gas.
Law 155/2020 was published in the Official Journal of Romania no.665 on 27 July 2020. Law 155/2020 amends the Electricity and Natural Gas Law (no. 123/2012) and other legislation. According to it, a special account will be set up within the state budget, in which funds will be collected exclusively for the protection of vulnerable customers.
Starting 30 July 2020, the selling price of natural gas charged by licensees for the supply of natural gas will be formed on a free market basis, from the unit cost of natural gas, excluding quantities of natural gas from import and storage, plus the transport rate, distribution rate, storage rate and supply rate, plus related taxes.
This regulation will apply for sales of natural gas to household customers and heat producers, only for the amount of natural gas used to produce heat in cogeneration plants and in thermal power plants intended for public consumption.
For the above-mentioned suppliers, the amount resulting from the difference between the actual purchase price and the regulated price of 68 lei / MWh, will have the following uses:
- 10% will remain with the supplier;
- 90% will go to the state budget, and be placed in a special account intended exclusively for the protection of vulnerable customers.
The measure, which is to be applied until 30 June 2021, targets only the quantities of natural gas that have a purchase price below 68 lei / MWh.
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