Brussels, 23/11/2000 (Agence Europe) - The European Commission authorised the German regime that exonerates from taxes on mineral oils certain high efficiency combined cycle gas turbine power plants, this measure that was notified by the German government, enables the high efficiency electricity power stations (that is to say with a minimum electrical efficiency of 57.5%), equipped with gas vapour turbines, to be exonerated from taxes on mineral oils for five years as of the sustained beginning of electricity production. This exoneration only applies to power station completed after 31 December 1999 and that have started to produce electricity for the first time in a sustained manner, before 1 January 2004.
The Commission feels that this tax break, which has as aim to encourage the investments in this type of power station, constitute State aid to the extent that it is not a neutral provision from the point of view of competition that may benefit all the economic actors, but a regime specially favouring the electricity production companies that supply the electricity network, in a sector where there exists exchanges between Member States. Following its investigation, the Community Executive felt that this aid answered the Community framework principals for State aid for the protection of the environment (as an aid toward energy savings), to the decisions taken previously in other Member States and concerning similar regimes as well as the Community policy in terms of the environment. As a result it decided to exceptionally authorise this measure for five years, as an operational aid. This done, it took into account the fact that the exemption will only be granted to new installations, it compensated the unique excess production in the form of tax on mineral oils and that it is in accordance with Community policy in terms of energy efficiency.