WRITTEN QUESTION E-1754/01

by Alexander de Roo (Verts/ALE) to the Commission

(15 June 2001)

Subject: Electricity from renewable sources in the Netherlands

No fewer than 40 % of households in the Netherlands are considering switching to electricity from renewable sources. As from 1 July 2001, consumers in the Netherlands will be able to select their own supplier of renewable (green) electricity, no matter where they live. Essent BV is already offering green electricity at prices which undercut those of electricity from non-renewable sources. The price differential has been made possible by the Regulatory Energy Tax, which is not levied on green electricity. In order to meet the rapidly growing demand, Dutch suppliers wish to buy in green electricity from abroad.

The Netherlands Ministry of Economic Affairs wishes to limit imports of green electricity because it fears the loss of revenue from the Regulatory Energy Tax if large numbers of people switch to green electricity. The sum at stake is said to be 1,8 billion (NLG 4 billion).

The Regulatory Energy Tax (commonly referred to as the EcoTax) was introduced with the aim of curbing energy consumption and encouraging consumers to switch to green electricity. The revenue is intended to enable income tax to be cut and labour made cheaper in relation to energy.

Surely this is a senseless turn of events?

To what extent are the plans of the Ministry of Economic Affairs incompatible with the liberalisation of the energy market?

Answer given by Mrs de Palacio on behalf of the Commission

(1 August 2001)

The Commission always felt that the changing circumstances due to liberalisation of Community's energy markets had to be reflected in a European framework for the promotion of electricity renewable energy sources within the internal market. With the recent agreement by Council and Parliament on the Commission proposal for a Directive on the promotion of electricity produced from renewable energy sources in the internal electricity market, this framework will soon be in place and will give a positive impetus to the situation of electricity from renewable energy sources.

Concerning the Dutch situation, at the moment, around half a million customers have decided to switch to green electricity in the Netherlands. They can either switch supplier or stay with their current electricity supplier. The demand of the customers that have chosen for green electricity at this moment equals more or less the percentage of current production of green electricity in the Netherlands.

Imports of renewable generated electricity into the Netherlands are allowed until 1 January 2002, under the conditions that also count for Dutch produced green electricity, meaning that they benefit from an exemption from the regulating energy tax (REB). The Dutch authorities are not in any way considering closing the borders for green electricity. On the contrary, if demand for green electricity keeps growing, imports will need to play an important role.

The Dutch authorities are now considering the options for dealing with the issue of imported green electricity from 2002 onwards. As soon as clarity has been provided by the Dutch authorities in this matter, the Commission will inform the Honourable Member of the details.