In a report on the third chapter of the 2022 Council Regulation on emergency intervention to address rising energy prices, the European Commission indicated on Monday, 19 May, that the revenue collected from the mandatory solidarity contribution for EU companies on the surplus generated in 2022 and 2023 could amount to €28.661 billion.
As of 30 June 2024, the collected revenue for tax year 2022 amounted to €16.497 billion, and that for tax year 2023, €9.653 billion. However, total estimated revenue for tax year 2023 is €12.164 billion—which, once this revenue has been collected, would bring the total to €28.661 billion.
This amount exceeds the European Commission’s initial estimate of €25 billion when the proposal for a regulation was adopted.
This regulation was adopted following the Russian invasion of Ukraine in 2022 (see EUROPE 13037/33). The purpose of the third chapter was to establish a temporary solidarity contribution on surplus profits generated during tax years 2022 and 2023 for companies operating in the crude oil, natural gas, coal, and refining sectors and generating at least 75% of their turnover from activities such as extraction, mining, or even refining crude oil.
Although this crisis measure did not aim to fully finance the fiscal cost of the various domestic policy measures designed to alleviate the effects of soaring energy prices, the report points out, “it has undoubtedly contributed to help[ing] Member States mitigate the impact of the energy crisis on households and businesses across the EU”.
The European Commission indicates that according to Member States’ reports, most of them have chosen to allocate the revenue to financial support measures for final energy consumers—for vulnerable households in particular.
Furthermore, the report presents an overview of the fossil fuel sector and stresses that although prices remain above historical levels, “the environment for generating windfall profits has tempered” compared to the extraordinary conditions in 2022.
To see the report: https://aeur.eu/f/gwm (Original version in French by Pauline Denys)