Germany: Power surcharge inequalities spark competition concerns

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.

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

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