WRITTEN QUESTION E-0367/00 by Marie-Noëlle Lienemann (PSE) to the Commission. Reduced VAT rates for district heating systems' customers.
Date: 2000-02-14
Institutions: European Parliament, Provisional data
Subjects: VAT rate, consumer protection, energy industry, heating

21.11.2000

EN

Official Journal of the European Communities

C 330 E/141

(2000/C 330 E/158)

WRITTEN QUESTION E-0367/00

by Marie-Noºlle Lienemann (PSE) to the Commission

Subject: Reduced VAT rates for district heating systems(cid:146) customers

(14 February 2000)

To date, the supply of gas and electricity appears in the Community list of projects to which the Member
States of the European Union may apply a reduced VAT rate. On the other hand, this is not the case for
customers of district heating networks.

However, these urban networks often help in a reprocessing of domestic waste and in energy diversifica-
tion, which is a European Union objective; finally, with regard to the social requirements which determine
the reduced rate, whether the consumer uses gas, electricity or a district heating system, the tax burden
should be the same, especially since the consumer often hardly has any choice (people living in blocks of
flats, etc.).

Can the Commission please explain what could have justified such an imbalance between the different
types of energy supply? Does it intend to correct this imbalance by proposing the inclusion of agreements
concluded with district heating networks in the list of projects which may benefit from reduced VAT rates?

Answer given by Mr Bolkestein on behalf of the Commission

(22 March 2000)

Current Community legislation does not allow Member States to apply a reduced VAT rate to district
heating systems(cid:146) customers.

The current rules were adopted after negotiations within the Council which led to the amendment of the
Commission(cid:146)s original proposal (1) dropping the possibility of applying a reduced VAT rate to natural gas
and electricity.

In its proposal on the harmonisation of rates the Commission stated that the obligatory reduced rate
should apply to energy products for heating and lighting in order to avoid distortions.

The Commission will examine this matter at the next meeting on the contents of Annex H to the Sixth
VAT Directive (77/388/EEC) (2) to which the reduced rate applies. It cannot, however, at this stage predict
the outcome of the Council(cid:146)s discussions on any new proposals.

(1) OJ C 250, 18.9.1987, amended by OJ C 44, 19.2.1992.
(2) OJ L 262, 15.10.1977.

(2000/C 330 E/159)

WRITTEN QUESTION E-0368/00

by Benedetto Della Vedova (TDI) to the Commission

(14 February 2000)

Subject: Transfer of part of the electricity generation capacity of ENEL S.p.A., the former Italian state

monopoly in this sector

As part of the process of privatising and liberalising the electrical energy production sector, the Italian
Government recently decided in its capacity as controlling shareholder, and in accordance with the
relevant legal provisions, to remove 21 plants with a total capacity of 15 thousand megawatts from the
former state monopoly ENEL S.p.A (equal to about a quarter of its production capacity) and hand them
over to three separate and newly established companies: Eurogen S.p.A., Elettrogen S.p.A. and Interpower
S.p.A.

On 25 January 2000 the Italian Cabinet passed a decree laying down the procedures for the transfer
involving the three private companies, stipulating that it should be done through private negotiation,
under the control of ENEL S.p.A. and under the supervision of the Treasury Minister and the Minister for
Industry, as well as with the assistance of the advisory committee for privatisations.