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European Commission approves lower CHP surcharges in Germany and Italy

The European Commission has cleared reductions granted to energy-intensive companies on surcharges to finance support for cogeneration (CHP) in Germany, and reductions on surcharges to finance support for cogeneration and renewables in Italy, considering that these measures helped EU energy and climate targets while ensuring the global competitiveness of energy-intensive industries.



Until 2014, energy-intensive companies in Germany were exempted from paying the renewable energy surcharge (EEG surcharge) to avoid soaring costs for industrial customers. In 2014, the European Commission considered that this exemption was not unfair competition but approved it only for auto-producing industrial companies until 2017. In October 2016, it opened an in-depth investigation to determine whether reductions to these surcharges for these users were in line with EU state aid rules. Germany amended its conditions for exemptions, limiting the reductions to a maximum of 85% of the surcharge. This modified regulation now are in line with EU state rules.



As well, Italy introduced reductions in renewable surcharges for energy-intensive companies active in sectors exposed to international trade. The reduction were limited to maximum 85% of the renewable and cogeneration surcharge; on this basis, the Commission approved the Italian renewable support scheme in April 2016 and found that the Italian surcharge reduction plans are in line with EU state aid rules.

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