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Image header Agence Europe
Europe Daily Bulletin No. 11990
Contents Publication in full By article 13 / 35
ECONOMY - FINANCE - BUSINESS / State aid

Green light to German measure reducing offshore surcharge for certain energy-intensive companies

On Tuesday 27 March, the European Commission approved a German plan to reduce the offshore surcharge applicable to energy-intensive and railway companies.

The German law on energy provides for funding for the costs of connecting offshore wind turbines to the electricity network from 2019, by means of an offshore surcharge to be invoiced to electricity consumers. Under the same text, reductions on these surcharges may be awarded to certain electricity-intensive and railway companies, thereby reducing their financial burden compared to those of other companies.

The Commission examined the measure in light of the guidelines on state aid for environmental protection and energy (2014-2020) and those concerning state aid for railways undertakings.

Firstly, it noted that the reductions will be limited to businesses active on market segments exposed to international trade. As regards electricity-intensive companies, the institution found that these reductions would be proportionate. For railway companies, it considered that they would help to limit the costs related to electricity in the railway sector, thereby increasing the competitiveness of rail.

Concluding that there was no significant distortion of competition, the Commission therefore approved the scheme. (Original version in French by Lucas Tripoteau)

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