The European Commission has approved a €578 million (Rp 2.9 billion) Romanian scheme to reduce the electricity tariff for energy-intensive businesses, in line with EU state aid rules.
The fee is intended to support electricity from renewable energy sources. The scheme aims to mitigate the risk that the levy could lead energy-intensive companies to relocate their activities to places outside the EU with less ambitious climate policies.
Romanian system
In 2011, Romania introduced green certificates to support electricity from renewable energy sources, under which eligible renewable energy producers receive green certificates for each megawatt-hour produced and delivered to the grid. Electricity suppliers are required to purchase a mandatory quota of green certificates. The cost of the green certificates is ultimately passed on to consumers through a levy.
The aim of the scheme is to reduce the levy rate for energy-intensive businesses, thereby mitigating the risk that they will relocate to locations outside the EU with less ambitious climate policies. The scheme will run until 31 December 2031 and has an estimated budget of €578 million (RON 2.9 billion).
The measure will benefit companies in the sectors listed in Annex 1 Guidelines for State aid in the field of climate, environment and energy 2022 ("CEEAG"). These industries are heavily dependent on electricity and are particularly exposed to international trade. Recipients will receive a reduction in the levy ranging from 75 to 85 % depending on their risk exposure. The applicable reduction must not lead to a levy lower than EUR 0,5/MWh.
Under the scheme, beneficiaries will have to either implement certain energy audit recommendations, cover at least 30 % of electricity consumption with carbon-free sources, or invest at least 50 % of support in projects leading to a substantial reduction of greenhouse gas emissions at the facility.
The scheme approved today replaces the previous scheme approved by the Commission in October 2014which had the same objective and aligns the scheme with the CEEAG rules.
Commission assessment
The Commission assessed the scheme under EU State aid rules, in particular under Article 107(3)(c) Treaty on the Functioning of the European Union (TFEU), which allows Member States to promote the development of certain economic activities under certain conditions, and under CEEAG guidelineswhich allow Member States to provide support in the form of reduced electricity charges for energy-intensive users.
In particular, the Commission found that:
- The mode facilitates the development of certain economic activities that are heavily dependent on electricity and are particularly exposed to international competition.
- The measure is necessary a suitable for to contribute to the achievement of the objectives European Green Agreements.
- The measure is Adequateas the individual aid amounts do not exceed the maximum aid amounts allowed under the CEE guidelines and are limited to the sectors listed in the CEE guidelines.
- Positive effects of the scheme outweigh the potential negative effects on competition and trade in the EU.
On this basis, the Commission approved the Romanian scheme under EU state aid rules.
"This €578 million programme allows Romania to support companies that are particularly exposed to international trade and whose activities are heavily dependent on electricity. This programme maintains incentives for the effective decarbonisation of the Romanian economy in line with the European Green Deal objectives. At the same time, it keeps distortions of competition to a minimum," said the Commission's executive vice-president responsible for competition policy Margrethe Vestager.
2022 CEEAG provide guidance on how the Commission will assess the compatibility of environmental protection measures, including climate protection, and energy aid measures subject to notification under Article 107(3)(c) TFEU.
Communicating the European Green Deal 2019, the Commission has set a target of zero net greenhouse gas emissions in 2050, which is enshrined in the European climate law. The law, which has been in force since July 2021, also introduced an interim target to reduce net greenhouse gas emissions. by 2030 at least o 55 %. Thanks Adoption of the "Fit for 55" legislative proposals the EU has legally binding climate targets in place that apply to all key sectors of the economy.
A non-confidential version of the decision will be made available under case number SA.110166 in the State Aid Register on the Commission's website dedicated to competitiononce any confidentiality issues have been resolved. New publications of State aid decisions on the Internet and in the Official Journal are listed in Competition Weekly e-journal.
EC/ gnews - RoZ
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