Engie is very “worried” about the Belgian project to tax surplus profits: the extension of nuclear power in danger?

Energy Minister Tinne Van der Straeten (Groen) has announced the outlines of her plan to tax excess profits made in the energy sector. The idea is in particular to tax electricity producers when they sell their production above the price of 130 euros per MWh, a level stricter than the minimum of 180 euros recommended by Europe. In the viewfinder, there would be nuclear power plants in particular, whose production costs are much lower, around 30 or 35 euros per MWh.

Contacted, Engie, the owner of the power plants, said to himself “very worried” by this project. Engie notes that the government wishes to go “considerably further” than what Europe offers. The energy company indicates that this tax could have repercussions on its ability to invest in Belgium, particularly in renewables, in its project for a new gas-fired power station, but also in “possible prolongation” of Doel 4 and Tihange 3. Engie also indicates that this project could constitute a possible double taxation of its nuclear income. As a reminder, a specific nuclear tax already affects its reactors. The energy company therefore calls for consultation on the project.

For her part, Tinne Van der Straeten indicates that the Belgian proposal stems from the agreement reached at European level. According to the ecologist, it will therefore hold the road legally. In addition, Tinne Van der Straeten believes that his project will not be called into question by the agreement signed between the Michel government and Engie in 2015. As a reminder, this agreement notably governs the taxation regime for Engie’s nuclear fleet.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.