WRITTEN QUESTION E-3782/00

by Erik Meijer (GUE/NGL) to the Commission

(4 December 2000)

Subject: Price rises for clean electricity as a result of EU competition rules

1. Is the Commission aware of the report in the Dutch newspaper De Volkskrant of 18 November 2000 that there is a serious difference in the interpretation of the Commission's policy, with the Netherlands energy firms maintaining that the consumer price for electricity from renewable sources (clean electricity) must be increased on the Commission's instructions, while Greenpeace describes this claim as nonsense?

2. Is it true that the Commission will be deciding in December that clean electricity in the Netherlands, which is exempt from the environmental tax, will be required in 2001 to be increased because the environmental tax on dirty electricity will then be rising from 8,5 cents to 12,5 cents per kW/h, thus placing clean electricity in a better competitive position and enabling it to price a competing product out of the market?

3. Can the Commission confirm that the cost price of wind-generated power can be lower than that for electricity generated by fossil fuels which are subject to the environmental tax? Has it in the past taken action to prevent such power being available to consumers at the same or a lower price?

4. Does the Commission agree that it is not enough if only environmentally aware people on high incomes have the opportunity to contribute voluntarily to cleaner forms of energy, while clean power remains unaffordable for the majority of users and there is no change in electricity production for the majority?

5. Is the Commission prepared to encourage a growth in the number of users of clean power by removing obstacles such as the relatively high price as far as possible?

Answer given by Mrs de Palacio on behalf of the Commission

(1 March 2001)

1. The Commission cannot confirm that the consumer price for electricity from renewable energy sources must be increased on its instructions. To the contrary, the Commission adopted in May 2000 a proposal for a Directive of the Parliament and of the Council on the promotion of electricity from renewable energy sources in the internal electricity market(1). The basic objective underlying this proposal for a Directive is to create a framework that will facilitate a significant medium-term increase in renewable generated electricity within the Community. To this end the Commission proposal recognises in its recital 18 that public support for renewable electricity will be necessary to reach the Community's objectives with regard to its expansion, in particular as long as electricity prices in the internal market do not reflect the full social and environmental costs and benefits of energy sources used.

2. The regulatory energy tax in the Netherlands includes a zero tax rate for renewable electricity. This measure was approved by the Commission for the period up to 1 January 2003(2). The Netherlands increased the general tax rates within this energy tax as of 1 January 2000. This increase made a new assessment of the measure under the state aid rules by the Commission necessary. At the moment, the Commission is assessing the case and thus a decision on this point is still pending.

3. The cost-price of wind power is subject to numerous factors, including offer and demand on the electricity market, the efficiency of the wind-power technology employed as well as the application of support schemes in favour of wind power. Furthermore, the state aid rules of the Treaty in principle do not prohibit the use of fiscal instruments to support electricity produced from renewable energy sources. Furthermore, the Commission on 29 November 2000 adopted a Green Paper that outlines a long-term European strategy for the security of energy supplies(3). This Green Paper finds that the Community must rebalance its supply policy by clear actions in favour of a demand policy. With regard to demand, the Green Paper is consequently calling for a real change in consumer behaviour. It thus highlights the value of taxation measures to steer demand towards better-controlled consumption that is more respectful of the environment.

4. and 5. As mentioned above, the Commission is pursuing a policy in favour of increasing the market share of electricity from renewable energy sources. The Commission believes that such a policy will lead to a fall in prices for this type of electricity and will thus make it affordable for a wide range of consumers. In this context, the Commission adopted on 21 December 2000 new Guidelines on State aid for environmental protection(4). These guidelines authorise Member States to grant investment and operating aid to renewable energies, under very flexible conditions.

(1) OJ C 311 E, 31.10.2000.

(2) OJ C 244, 4.8.1998.

(3) COM(2000) 769 final.

(4) OJ C 37, 3.2.2001.