The European Commission has opened an in-depth investigation to examine whether the reduction granted to energy-intensive companies on a surcharge for the financing of renewable energy sources in Germany (the so-called "EEG-surcharge") is compatible with EU state aid rules.
The Commission will also investigate the reduction on the EEG-surcharge granted when a supplier sources 50% of its electricity portfolio from domestic renewable electricity ("green electricity privilege"). The opening of an in-depth investigation gives third parties an opportunity to comment on the measure under assessment without predetermining the outcome of the investigation. It also allows third parties to bring forward information that can help better understand the impact of the surcharge on possible risks of relocation and the impact of the reductions on competition, the statement said.
The Commission examined the EEG-Act 2012 during a preliminary investigation triggered by numerous complaints received from consumers and competitors. In 2012, the EEG-Act was substantially amended, resulting in a change in the structure of the German support mechanism for electricity from renewable sources so that it constitutes state aid as far as EU rules are concerned, because it is financed by a resource under the control of the state.
The Commission has found that public support to producers of renewable electricity granted under the EEG-Act 2012 in the form of feed-in tariffs and market premiums constitutes aid but is in line with the Commission's 2008 guidelines on state aid for environmental protection.
By contrast, at this stage the Commission has concerns that two aspects of the EEG-Act may not be in line with EU state aid rules: firstly, the surcharge reduction for energy intensive companies appears to be financed from a state resource and seems to give the beneficiaries a selective advantage that is likely to distort competition within the EU internal market. Secondly, the "green electricity privilege" could possibly result in discriminatory taxation. The reduced EEG-surcharge is available to suppliers only if 50% of the electricity portfolio is sourced from domestic renewable electricity produced in plants that are not already more than 20 years in operation. This seems to discriminate between domestic and imported electricity from renewable sources produced in similar plants.
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