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Germany negotiates the removal of industrial discounts on EEG

Germany is discussing with the European Commission the removal of the discount on the EEG (renewable energy surcharge paid by electricity end-consumers) awarded to industrials. The German government will seek to reach a resolution with the Commission by April 2014 to maintain rebates in 2015. Should the EU rule these discounts were unfair, industrials could be forced to pay them back. EEG exemptions are estimated at €4bn in 2013 and should rise to €5.1bn in 2014, while the total surcharge paid by end consumers may total €24bn in 2014.

In 2014, the EEG levy increased by 18% from €2.577c/kWh in 2013 to €6.24c/kWh. To limit the impacts on energy-intensive industries and preserve their international competitiveness, the latter were granted EEG reductions (as of 2003, and renewed under the Renewable Energy Law as amended in 2012). The EU extended probe of financial breaks in December 2013, as these exemptions could be violating EU state-aid rules.