“The decree exempts coal-fired and co-generation power plants from the 2% turnover tax. Regardless of motivation, the measure is discriminatory, it qualifies as state aid and requires European Commission approval,” she explained.

She added the fact that those power plants are on the brink of insolvency is not a sound reason to approve state aid, which the EC might reject.

The government plans to keep a 2% tax on turnover for energy producers, exempting state-owned thermal and coal-fired power plants, and will cap electricity and natural gas prices for households and some industrial consumers until end-February 2022, according to a draft emergency decree published by the finance ministry late Tuesday.