Germany Proposes to Skim Off 90% of Profits in Spot Power Market

The German government floated plans to slap a windfall tax on power producers, which would see almost all their profits from spot-market sales wiped out.

Proceeds from the levy, which would be backdated to March 1 and end on Nov. 30, would be used to subsidize consumers’ electricity bills, which have soared amid Europe’s worst energy crunch in decades. The proposal comes just days after a panel of experts recommended the government spend almost €100 billion ($98 billion) to ease the cost of natural gas for homes and businesses.

Germany is at the heart of Europe’s energy crisis as Russia ...