Energy companies are already overloaded with taxes, and since the beginning of the energy crisis, the state has earned 45 billion lei from them. A new tax of 1% of turnover will block investments in the network, says the head of E.ON Romania.

“In distribution, we talk about a regulated business, which means that we only make a profit to be able to finance our investments. This profit is guaranteed, but in this sector we already have a turnover tax, it is called a monopoly tax. This means that we will have two sales taxes on a regulated business. I am convinced that this must be fixed as soon as possible, because otherwise we will not be able to finance the investment, that’s clear,” said Volker Raffel, CEO of E.ON Romania, at the conference “Romania and the New European Energy Order” organized by the Governance Course.

Regarding the supply business, he explained that energy suppliers collect a lot of tariffs which they then pass on, so it is unfair that they charge turnover.

“Suppliers bill a lot because we bill for our tariffs, as well as distribution services, transport, environmental certificates and taxes. If we add all this, the turnover will be high, but our business is a small fraction, so if we tax all of this turnover, the approach is wrong. This is where, in my opinion, it needs to be corrected,” said Raffel.

He also said that since the start of the energy crisis, the Romanian state has received 45 billion lei from taxation, surcharges and dividends and has reimbursed only 18 billion lei to suppliers based on legislation capping electricity and gas final tariffs.

“In the energy sector, this is a special situation and we should not charge twice,” said the responsible representative of E.ON Romania.