EDPR to take legal action over Romania and Poland energy taxes

Illustration shows Electric power transmission pylon miniatures and EDP Renovaveis logo
Electric power transmission pylon miniatures and EDP Renovaveis logo are seen in this illustration taken, December 9, 2022. REUTERS/Dado Ruvic/Illustration

MADRID, Jan 9 (Reuters) - Portuguese renewable energy provider EDP Renovaveis (EDPR.LS), said on Monday it will take legal action against newly created taxes on energy in Poland and Romania.

Like other European Union countries, Romania and Poland have recently introduced emergency measures to claw back revenue from utilities to help consumers facing soaring energy prices.

EDP Renovaveis said in a statement it believes the measures in both countries do not follow the European Union principle of clawing back only realised market revenue.

It said the measures do not take into account price hedging and thus would tax profits which companies such as EDP Renovaveis did not actually make.

"EDP will pursue all legal actions to contribute to the return to a fair rule of law that may support much-needed investments in renewables in these countries and within the European Union," the company said, without specifying what action it would take or in which court.

It said the new taxes could result in "unreasonable payments" and potential costs of about 300 million euros ($320 million).

EDP Renovaveis operates renewable power plants with a capacity of 697 megawatts (MW) in Poland and 521 megawatts (MW) in Romania.

($1 = 0.9369 euros)

Reporting by Matteo Allievi; editing by Inti Landauro and Jason Neely

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