Grid Balancing Tax to Cost Alteo HUF 2 bln in 2022

Energy Trade

Listed alternative energy company Alteo on Thursday said a new windfall profit tax on companies that provide grid balancing services will raise its tax burden by around HUF 2 billion in 2022, according to a report by state news wire MTI.

The tax on companies that even out differences between supply and demand on the electricity grid was introduced on Wednesday for the tax years 2022 and 2023.

Alteo said the tax change does not justify an assessment of its financial situation or any change to its strategy or investment direction.

The company intends to continue its investments in the area of regulatory energy services, which is "one of the most important areas" of the company's strategic investment efforts, it added.

The windfall profit tax is expected to raise HUF 40 bln in budget revenue in both 2022 and 2023.

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