On 15 March 2023, the government of Luxembourg presented Bill 8175 to the Parliament to introduce a temporary windfall tax on surplus revenue from electricity production in accordance with EU Regulation 2022/1854.
Electricity providers will be subject to a tax of 90% on surplus revenue from electricity production. The mandatory limits are as follows:
- for hydroelectric power, the limit is EUR 100 per megawatt hour;
- for wind energy, solar energy, municipal and industrial waste, and gas from water treatment plants, the limit is EUR 130 per megawatt hour; and
- for fuels from solid biomass or scrap wood and biogas, the limit is EUR 180 per megawatt hour.
From 1 December 2022, the windfall tax would be applied retroactively and would continue to be in effect until 31 December 2023.
