Additional profits with gas 11 billion additional taxes for major energy companies | Melina Gabanelli

Energy companies make huge profits because gas prices due to unexpected events Oil rose, while their purchases were done well before and at a much lower price. For this reason, the government decided by the last aid decree that on the difference between the purchase price and the selling price of gas From October 2021 to March 2022Compared with the same period of the previous year, it is applied more 25% fee. The Treasury budgeted a set of 11 billion euros, to reduce the burden of household chores bills and 30 cents production fee on diesel and gasoline. Which already broke 2 euros per liter at the pump. Enel, Ene, Edison, the main recipients of this “extra tax” have already lined up with lawyers: “The calculations are wrong.” Let’s try to do some math.

What is in a megawatt hour?

The price of electricity depends exclusively on the direction of gas price. Between October and December 2021, the customs agency found that fromAlgeria Gas arrived in Italy 23 EUR to me megawatt hourFromAzerbaijan to me 67From Russia to me 54give her LNG carriers Around 48. These are the prices he pays Ene, Edison and Enel As a result of their pre-stated long-term contracts. From From January to March 2022 instead ofAlgeria arrived in 29 euro to me megawatt hourFromAzerbaijan to me 81From Russia to me 88. No data is available on this via LNG carriers.


From Terna data processing, within MWh of electricity sold to users, there is a share made using Solar which costs between 20 and 30 eurospart of wind force which costs between 30 and 40one of the most important hydroelectricity who oscillates between 10 and 20one made of coalwho travels around 50 euroand part of Nuclear Energywhose cost to import from France ranges between 35/40 EUR. So what is the selling price to consumers?


How is the price formed?

The price has been finalized by the Energy Authority (Arrera). 18 million users paid in greater protection (between electric and gas) from approximately January to March 96 euros per megawatt-hour. big difference. This is for two reasons:
1) The price of natural gas is related to the average price of the previous quarter of Amsterdam Stock Exchange, speculation by funds and brokers, and geopolitical conflicts such as those in Ukraine. Today we pay an average January quarter – Marchwhich is already about 100 euros.
2) The selling price on the invoice is related to the higher megawatt-hour share and 44% of electricity is produced by gas. A mechanism called “marginal price”, which penalizes Italy above all because no other country implements it.

This means that when the price of gas explodes, the price of renewables also goes up

In fact, the cost of solar and wind energy was only half a year ago. On the other hand, it is difficult to know how much electricity was sold in the free market 30 million users, because there are those who conclude a contract at a variable rate and there are those with a fixed price for a period of one or two years. For the latter, the increase was not applied.


speculation

The government to see how long chain of operators are already in their pocketinstructed Arera to go and look at the contracts, renegotiations, trading activity, and how much the derivatives set cost with banks to protect the risk of prices rising or falling too quickly. The market thrives on sales contracts in which the asset is delivered The agreed price is paid on a pre-determined future date. These are bets in advance on the price of gas, usually at three months. If it is expected to go down, it starts selling, and if it is expected to go up it starts buying, then the price goes up. The end user pays for this speculationwhile giant corporations and hedge funds are getting richer like never before. Unknown names such as Man Group, Systemic Investments, Florin Court Capital and Gresham Investment. They have offices in Tax havens, and on Wall Street or London, they do not buy and sell natural gas, but the derivatives with which the physical asset is related. It’s a world so complex and opaque that it’s impossible for Arrera to pinpoint an exact figure.


Great Profits

So how did the Treasury calculate the additional earnings? Regarding the VAT settlement, that is, how much operators buy raw materials and how much they sell. Ene, Enel, and Edison argue why it’s a starting value. They also pose a constitutional problem: “Why do we have to pay only us and not also the banks, Unicredit and Intesa in the lead, which make a lot of money by hedging policies on raw material prices?”. Meanwhile, Enel closed the first quarter with revenues that rose from 18 to 34 billion, almost doubling compared to the same period in 2021, and pre-tax earnings from it grew. 2.1 to 2.3 billion. It generated nearly 1.4 billion gross operating margins from thermal (gas-based) power generation and trading activities alone: ​​442 million in the first quarter of 2021, and 1.61 billion from January to March of this year. In the first quarter of 2022, Eni also doubled its turnover (32 billion euros), while industrial profits rose from 1.3 billion to 5.2 billion from this year. Enel CFO, Alberto Di Paolispecifying that the new tax will weigh a maximum of one hundreds of millions. For Eni, analysts expect the contribution is unlikely to exceed Billion. also Nicola MonteEdison’s head ($7.1 billion in revenue in the first quarter compared to 2.1 in the previous year) explained that the group plans to allocate no more than one hundreds of millions.


We are talking about listed companies that have state-owned companies in their contributionsuch as Cassa Depositi or the French Edf, but also a large group of institutional investors: the giants of managed savings, between London and New York, who are also collecting huge profits thanks to the bills paid by Italian families. In fact, the first installment of these 11 billion must be paid by June 30. If the operators do not pay what is required (and we already know that the disputes of the past years), the funds will have to be found to help families and businesses in difficulty by increasing public debt, or by cutting public services.


Data to calculate inflation

Inflation update is bleak too. The most relevant data to know is specifically energy data: it serves to determine the cost of living and the purchasing power of wages. Getting a complete picture of energy commodity imports from outside the European Union is the task of IstatHowever, the manner in which prices were obtained and communicated Eurostat They are not right. The statistical institute itself admitted this in a note: “We have to wait until October, when the data for 2021 will be consolidated,” also due to the increasing importance of financial transactions. who – which It does not involve physical transit of gas. Translator: In the absence of correct data, it will also be difficult to establish a ceiling for the price of gas.

June 13, 2022 | 07:07

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