• Germany is investigating whether a planned levy on energy companies’ coincidental profits can be retroactive.
• Chancellor Olaf Scholz said the levy was necessary to stabilise the electricity market.
• Germany’s decision to extend the lives of two nuclear power plants was made solely to ensure adequate electricity supply this winter.

Germany is investigating whether it is legal to make a planned levy on energy companies’ coincidental profits retroactive, according to Germany Chancellor Olaf Scholz.

Berlin imposed a levy on power producers on Sunday as part of a 65 billion euro ($64.44 billion) package to redistribute power profits from producers who benefited from high gas prices.

The levy, dubbed a “coincidental profit tax,” is expected to generate revenues in the billions of euros.

When asked if the levy could be implemented retroactively, Scholz told the Frankfurter Allgemeine, “That will have to be checked legally.”

Scholz said the levy was necessary to stabilise the electricity market, adding that there would be enough electricity in Europe’s largest economy but warning that the energy crisis would not end soon.

“Unfortunately, the energy crisis will be with us for some time to come,” he added.

Scholz stated that Germany’s decision to extend the lives of two nuclear power plants was made solely to ensure adequate electricity supply this winter and does not imply that Berlin is reconsidering its nuclear energy exit.