A PYMNTS Company

Germany: Power surcharge inequalities spark competition concerns

By  |  November 19, 2013

The European Commission warned hundreds of German industrial companies that they could become insolvent unless officials revise its renewable energy law, the legislation that has risen competition concerns, say reports.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    European Energy Commissioner Guenther Oettinger said Tuesday that EU regulators are concerned the legislation’s methods for charging power users are disproportionate and could harm competition. Under the law, the government collects charges from electricity users that go towards funding wind and solar power project; firms that heavily use electricity, such a chemical plants, are exempt from such a surcharge to prevent the companies from being “priced out of the global market,” say reports.

    Europe’s energy chief is now warning that the companies could be at risk unless the legislation is revised, as an investigation by the European Commission would put a stop to the discounts offered to heavy energy users.

    Oettinger said European Commissioner Joaquin Almunia plans to decide within the next few days whether to launch a formal probe into the matter.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.