Government budgets €434 million from energy sector levy in 2027

The government's 2027 State Budget proposal keeps the Extraordinary Contribution on the Energy Sector and forecasts €434 million in revenue from it next year. That is €171 million, or 65.2%, more than the estimate for 2026. The levy was introduced in 2014 under Pedro Passos Coelho as a temporary measure but has remained in place, and it was repealed last year for the natural gas subsector. EDP, Galp and REN have challenged it in court, and in July last year the Constitutional Court ruled the payment rule unconstitutional for natural gas firms. Parliament debates the budget on 27 and 28 October, with the final vote on 24 November.