The left-wing political party AKEL has submitted a bill to the Cypriot Parliament that seeks to tax the excess profits of electricity producers and suppliers operating in the renewable energy sector. The legislative proposal was officially tabled on Thursday by AKEL’s General Secretary, Stefanos Stefanou.

The bill aims to amend the existing Income Tax Law by introducing special provisions targeting surplus earnings generated by producers and suppliers of electricity from Renewable Energy Sources (RES). According to the explanatory report accompanying the bill, the proposal is based on a recent communication from the European Commissioner for Energy, dated February 21, 2025. The Commission’s guidance allows EU member states to implement tax measures to address extraordinary profits in the energy sector.

AKEL argues that the measure aims to ensure fairness and social justice amid growing concerns over windfall profits in the energy market—especially as households continue to face high electricity costs. The party believes that taxing excess profits from RES operations can help redistribute gains made during energy price surges, in line with broader European policy trends.