EC allows energy tax rebate for Germany

EC allows energy tax rebate for Germany's intensive users

Brussels (Platts)--31Mar2004


Germany's energy intensive users are allowed special treatment under the
state's environmental tax scheme, the European Commission ruled Tuesday. In
1999 Germany introduced a tax on electricity and raised taxes on oil use, but
in 2003 it offered a rebate--called Spitzenausgleich--to the most energy
intensive users. The EC said Tuesday that the rebate complies with European
Union state aid rules, as even with it German energy intensive users will be
paying more tax than the minimum stated in the European energy tax directive
that came into force on Jan 1, 2004. The approval applies retroactively from
Jan 1, 2003 to Dec 31, 2006--the end of the rebate scheme. The EC added that
the penalty mechanism, according to which eligible companies benefiting from
the rebate were obliged to fulfil certain targets in reducing emissions, was
no longer relevant, as long as the rebate was in line with the 2004 energy tax
directive.