The German Economy and Energy Minister has reversed plans to strike out the renewable energy tax (EEG-Umlage) rebate for train operators.
The EEG-Umlage is intended to finance the transition in Germany towards the use of renewable sources of energy. Article 41 of Germany’s renewable energy law governs the conditions under which the rebate may be given to energy-intensive companies. The tax rebate is aimed at supporting businesses with cheaper energy to improve their international competitiveness.
Over 2,000 companies will benefit from savings of about EUR5.1bn this year. The European Union (EU) is challenging the tax concession, however, arguing that the provisions are a form of illegal state aid. The Economy and Energy Minister is therefore redesigning the tax break in consultation with the EU, to ensure that the tax break is compatible with EU law.
