EDP appeals €300M tax bill in Poland

 In EDP, Energy, News

Portugal’s multinational electricity and renewables energy company EDP is expected to cough up taxes of €300 million on profits made in Poland and Romania.

This is because of the extraordinary ‘windfall’ in profits the company has made due to the current high energy prices in the electricity market.
The unexpected “bill” has resulted from legislative changes introduced in both countries which EDP is challenging because their governments have not taken into account the financial outlay that energy companies have made to offset the impact of price volatility. EDP says it will appeal the decision.
In order to comply with an European Union Council request for an emergency intervention to address high energy prices, governments in Romania and Poland recently introduced emergency clawback mechanisms to restrict the revenues earned by renewable energy producers and other market participants. Under a government emergency decree approved in September, Romania applies a 100% tax on revenues over 450 lei (US$96/€91) per MWh as well as a withholding tax on behalf of offtakers, EDP Renewables noted.
EDP Renewables plans to build a wind park with a total installed capacity of 226.5 MW in southeastern Romania, data published by electricity transmission system operator Transelectrica in October indicated. In March, the Romanian government said that EDP Renewables would invest in additional green energy projects with a capacity of 1,000 MW in Romania.
Last year EDP acquired Soon Energy in Poland. EDP Renewables (EDPR) also inaugurated a new wind farm in Budzyń, western Poland, with a total capacity of 70 MW which will produce enough energy to power more than 85,000 households.
The project reflects EDPR’s investment strategy in energy transition and energy independence of Poland, and Europe as a whole. EDPR is the world’s fourth largest renewable energy producer, and second in the Polish renewable energy market.

Photo: EDP