2005/231/EC: Council Decision of 7 March 2005 authorising Sweden to apply a reduced rate of taxation to electricity consumed by households and service sector companies situated in certain areas in the north of Sweden in accordance with Article 19 of Directive 2003/96/EC
Date: 2005-03-07
Institutions: Council of the European Union
Subjects: Sweden, electrical energy, environmental tax, household consumption, tax on consumption, tax system

18.3.2005

EN

Official Journal of the European Union

L 72/27

COUNCIL DECISION

of 7 March 2005

authorising Sweden to apply a reduced rate of taxation to electricity consumed by households and
service sector companies situated in certain areas in the north of Sweden in accordance with
Article 19 of Directive 2003/96/EC

(2005/231/EC)

THE COUNCIL OF THE EUROPEAN UNION,

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)

(3)

(4)

By letter of 20 August 2004, the Swedish authorities
applied to the Commission for a derogation allowing
them to apply a reduced rate of taxation to electricity
consumed by households and service sector companies in
the north of Sweden pursuant to Article 19 of Directive
2003/96/EC.

Since July 1981 a reduced energy tax rate has been
applied in Sweden to electricity used in the northern
parts of the country, where electricity consumption for
than
heating purposes
elsewhere in the country.

is on average 25 % higher

Reducing the cost of electricity for households and
service sector companies in the north of Sweden places
those consumers on an equal footing with their coun-
terparts
the country. The
measure therefore has
regional and cohesion policy
objectives.

in the southern parts of

reduced level of

for
The
consumption in the north of Sweden, which rate set
the tax
out

in Directive 2003/96/EC. Furthermore,

taxation on electricity

reduction is proportionate to the extra heating costs
borne by households and service sector companies in
northern Sweden. Consequently, that level of taxation
should ensure that the incentive effect of taxation to
increase energy efficiency is maintained.

The reduction applied for has been reviewed by the
Commission and has been found not to distort compe-
tition or hinder the operation of the internal market and
it is not considered incompatible with Community policy
on the environment, energy and transport.

That approach is in line with the position taken by the
Commission in the State aid Case C 42/03 (2), where no
objections were raised to the State aid element of the tax
reduction for a period ending on 31 December 2005.

It is therefore appropriate to authorise Sweden to apply a
reduced rate of taxation to electricity for consumption in
the north of Sweden until 31 December 2005,

(5)

(6)

(7)

HAS ADOPTED THIS DECISION:

Article 1

Sweden is hereby authorised to apply a reduced rate of taxation
to electricity consumed by households and service sector
companies situated in the municipalities listed in the Annex.

The reduction shall be proportionate to the extra heating costs
due to the northern location, in comparison with the rest of
Sweden.

The reduced rate shall comply with the requirements of
Directive 2003/96/EC, and in particular the minimum rates
laid down in Article 10 of that Directive.

(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 C 189, 9.8.2003, p. 6.

L 72/28

EN

Official Journal of the European Union

18.3.2005

Article 2

This Decision shall expire on 31 December 2005.

This Decision is addressed to the Kingdom of Sweden.

Article 3

Done at Brussels, 7 March 2005.

For the Council
The President

J. KRECKÉ

ANNEX

Regions

Municipalities

Norrbottens län

Västerbottens län

Jämtlands län

Västernorrlands län

Gävleborgs län

Dalarnas län

Värmlands län

All municipalities

All municipalities

All municipalities

Sollefteå, Ånge, Örnsköldsvik

Ljusdal

Malung, Mora, Orsa, Älvdalen

Torsby