BERLIN (Reuters) – The German government does not plan to extend a levy on electricity companies’ windfall profits beyond the end of this month, according to a document seen by Reuters on Friday.
Germany’s electricity supply is secured, the German Economy Ministry said in the letter to the president of the Bundestag parliament.
It said that specific details on the income generated by the levy in its first months would only be possible in August 2023.
Given a significant fall in electricity prices on the spot market since December 2022, there were little to no windfall profits for electricity companies.
The government could have extended the measure until the end of April 2024 at the latest, the letter states.
The levy, which skims 90% of electricity companies’ windfall revenue, was introduced to finance a cap on energy prices that soared in the wake of Russia’s invasion of Ukraine.
(Reporting by Christian Kraemer, Writing by Anastasiia Kozlova, Editing by Rachel More and Miranda Murray)
