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POWER: German Constitutional Court Rejects Complaints on Power Windfall Tax

POWER
CEEMEAEurozoneEnergy BulletsGermanyBulletPower BulletsCommodities

Germany’s Constitutional Court on Thursday rejected a suit by energy operators of renewable energy plants over a windfall tax on electricity production profits, it said.

  • The court ruled “that the interference with the freedom of occupation…through the redistribution of the “surplus proceeds” of certain electricity producers in favour of private and commercial electricity consumers is justified in response to an exceptional situation on the electricity market that arose after the start of the war in Ukraine in February 2022”, it said.
  • The court argues that the conflict in Ukraine has led to extraordinary revenues due to the gas shortages, which exceed typical investment expectations. 
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Germany’s Constitutional Court on Thursday rejected a suit by energy operators of renewable energy plants over a windfall tax on electricity production profits, it said.

  • The court ruled “that the interference with the freedom of occupation…through the redistribution of the “surplus proceeds” of certain electricity producers in favour of private and commercial electricity consumers is justified in response to an exceptional situation on the electricity market that arose after the start of the war in Ukraine in February 2022”, it said.
  • The court argues that the conflict in Ukraine has led to extraordinary revenues due to the gas shortages, which exceed typical investment expectations.