October 15, 2024
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Rompetrol Rafinare challenges 60% solidarity contribution in Constitutional Court

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Rompetrol Rafinare, part of the KMGI Group and operator of the Petromidia and Vega refineries, has received notification from the Constanta Court of Appeal regarding its challenge against the constitutionality of a government emergency ordinance. This ordinance, enacted at the end of 2022, imposes a 60% solidarity contribution on the extra profits of companies in the crude oil, natural gas, coal and refining sectors, based on a corresponding EU Regulation.

Initially, the company contested the surcharge through administrative complaints, which were rejected by the Fiscal Authority and the Ministry of Finance. Following this, Rompetrol filed a court action seeking annulment of the surcharge and restitution of nearly €116 million paid as a solidarity contribution. Additionally, the company sought to refer the matter to the Court of Justice of the European Union, but this request was deemed inadmissible by a Romanian civil court, leaving open the option for an appeal.

The Constitutional Court will now assess the constitutionality of Emergency Ordinance 186/2022, which implements Council Regulation (EU) 2022/1.854, aimed at addressing high energy prices.

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In 2022, the state utilized the funds collected from the solidarity contribution to compensate electricity and natural gas suppliers for the disparity between wholesale market costs and legally capped prices charged to consumers. In 2023, budget receipts from this contribution exceeded €600 million.

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