2005/153/EC: Council Decision of 17 February 2005 authorising the United Kingdom to apply an exemption from climate change levy for low-value solid fuel in accordance with Article 19 of Directive 2003/96/EC
Date: 2005-02-15
Institutions: Council of the European Union
Subjects: United Kingdom, derogation from EU law, environmental tax, fuel tax, tax exemption, waste recycling

24.2.2005

EN

Official Journal of the European Union

L 51/17

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 17 February 2005

authorising the United Kingdom to apply an exemption from climate change levy for low-value
solid fuel in accordance with Article 19 of Directive 2003/96/EC

(2005/153/EC)

THE COUNCIL OF THE EUROPEAN UNION,

a value of less than GBP 15 per tonne, such as the mixed
sweepings and debris left from coal and coke mining,
have been exempted from the levy.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Directive 2003/96/EC of 27 October
2003 restructuring the Community framework for the taxation
of energy products and electricity (1), and in particular Article
19(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

By letter of 18 June 2004, the authorities of the United
Kingdom applied to the Commission for a derogation
allowing them to continue to apply an exemption from
climate change levy (CCL)
in
for low-value solid fuel
accordance with Article 19 of Directive 2003/96/EC.

The United Kingdom CCL is designed to encourage
energy efficiency and low carbon technologies in the
It applies to gas, coal, electricity
non-domestic sector.
and liquefied petroleum gas used for heating by
business and the public sector.

(3)

Exemptions from the CCL were introduced in 2001 to
encourage good environmental practice. Solid fuels with

(4) With the entry into force of Directive 2003/96/EC,
Member States which did not tax these fuels have to
introduce such taxes.

(5)

(6)

A tax exemption would support the use of low-value
solid fuel for energy production instead of landfilling it.
While energy use is preferable to landfilling from an
environmental policy point of view,
the polluter-pays
principle would lead to the application of a lower rate
of tax to such low-value solid fuel, in connection with its
energy content. Given the varied quality and energy
content of the material and the consequent difficulties
to establish an exact
tax rate as well as the small
amounts concerned, a complete exemption could be
acceptable as a temporary measure. The exemption
should therefore be time-limited.

The annual cost to the UK Exchequer of the current relief
across the whole sector amounts to approximately GBP
100 000. Insofar as the tax exemption constitutes State
aid, the normal rules apply. It appears that the relief is
covered by Commission Regulation (EC) No 69/2001 of
12 January 2001 on the application of Articles 87 and
88 of the EC Treaty to de minimis aid (2). Nevertheless, if
the benefit to any single undertaking exceeds the ceiling
laid down in that Regulation, it should be notified to the
Commission in accordance with Regulation (EC) No
659/1999 of 22 March 1999 laying down detailed
rules for the application of Article 93 of the EC Treaty (3).

(1) OJ L 283, 31.10.2003, p. 51. Directive as last amended by Directive

2004/75/EC (OJ L 157, 30.4.2004, p. 100).

(2) OJ L 10, 13.1.2001, p. 30.
(3) OJ L 83, 27.3.1999, p. 1.

L 51/18

EN

Official Journal of the European Union

24.2.2005

(7)

reviews

and
The Commission regularly
exemptions to check that they do not distort competition
or hinder the operation of the internal market and are
not incompatible with Community policy on protection
of the environment, energy and transport,

reductions

HAS ADOPTED THIS DECISION:

Article 1

The United Kingdom is hereby authorised to apply an
exemption from excise duties in favour of low-value solid fuel
of less than GBP 15 per tonne.

Article 2

This Decision shall expire on 31 December 2009.

Article 3

This Decision is addressed to the United Kingdom of Great
Britain and Northern Ireland.

Done at Brussels, 17 February 2005.

For the Council
The President

J.-C. JUNCKER