Brussels, 19/12/2013 (Agence Europe) - The European Commission wants to examine whether competition is distorted by the reductions granted to energy-intensive companies under the German renewable energy law (EEG-Act).
On 18 December, the Commission opened two in-depth investigations to check the compatibility with EU state aid rules of two aspects of the German EEG-Act as amended in 2012. The two aspects reportedly benefit certain companies that consume large amounts of energy by granting them a reduction in the tax intended to finance renewable energy sources.
The EEG Act of 2012 provides for a surcharge on the consumption of electricity. Reductions of this tax are only permitted in two cases - on the one hand, for companies in the manufacturing sector that have a consumption of at least 1 GWh/a and that have electricity costs representing 14% of their gross added value, which in the Commission's view could give these companies a selective advantage that is likely to distort competition; and on the other hand, for suppliers that source 50% of their electricity portfolio from German renewable electricity produced in plants that have not been in operation more than 20 years, which in the Commission's view could result in discrimination between German green electricity and that produced in other member states by similar plants.
Speaking on German radio on 19 December, European Commissioner for Energy Günther Oettinger said he was confident that the Commission and the German government “will resolve the issue in the next six to ten months through a reform of the German energy legislation in line with European law”. “This is our objective. We are full of good will in Brussels and Berlin”, he added. Responding to the announcement of the investigation the previous day, Germany's Chancellor Angela Merkel gave assurances that she would defend this benefit given to energy-intensive industries - industries which, in her opinion, are crucial for maintaining employment. The coalition partners forming the new Merkel government have already said they want to reform the legislation on renewable energy as quickly as possible, but keeping the exemption mechanism for energy-intensive industries. “Are its criteria and its parameters good?” asked Oettinger, implying that the Commission has nothing against the rule in itself and could agree to a limitation of its scope. (FG/EH/transl.fl)