2006/503/EC: Council Decision of  11 July 2006  amending Decision 2005/231/EC authorising Sweden to apply a reduced rate of taxation to electricity consumed by certain households and service sector companies in accordance with Article 19 of Directive 2003/96/EC
Date: 2006-07-11
Institutions: Council of the European Union
Subjects: Sweden, derogation from EU law, electrical energy, environmental tax, household consumption, tax on consumption, tax system

21.7.2006

EN

Official Journal of the European Union

L 199/19

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 11 July 2006

amending Decision 2005/231/EC authorising Sweden to apply a reduced rate of taxation to
electricity consumed by certain households and service sector companies in accordance with
Article 19 of Directive 2003/96/EC

(2006/503/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)

By Council Decision 2005/231/EC (2) Sweden was
authorised to apply a reduced rate of taxation to elec-
tricity consumed by certain households and service sector
companies in accordance with Article 19 of Directive
2003/96/EC. That authorisation was limited until 31
December 2005. By letter dated 9 December 2005, the
Swedish authorities applied to the Commission for an
extension of the authorisation, until the end of 2011.

the

electricity
In the northern parts of
consumption for heating purposes
than
elsewhere in the country, the difference being 25 % at
present. Therefore, a reduced energy tax rate has been
applied in Sweden to electricity used in the northern

is higher

country,

(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 72, 18.3.2005, p. 27.

parts of the country since July 1981. The percentage of
the reduction as compared to the normal
rate has
however declined since that time.

By reducing the costs of electricity for households and
service sector companies in the north of Sweden those
footing with such
consumers are placed on an equal
consumers
country.
the
Therefore,
and cohesion
policy objectives.

southern parts of
regional

in the
the measure has

reduced level of

taxation on electricity

The
for
consumption in the north of Sweden, which amounts
presently to EUR 22 per MWh, remains much higher
in
set out
than the Community minimum rate
Directive 2003/96/EC. Furthermore,
the tax reduction
should remain proportionate to the extra heating costs
borne by households and service sector companies in
northern Sweden. That level of taxation should ensure
that the incentive effect of taxation to increase energy
efficiency is maintained.

The scheme has been reviewed by the Commission and
been found not to distort competition or hinder the
operation of the internal market and it is not considered
incompatible with Community policy on the envir-
onment, energy and transport.

(3)

(4)

(5)

(6) Without prejudice to the outcome of the State Aid case
N 593/2005 Sweden ‘Prolongation of service sector's
regionally differentiated energy tax on electricity’,
it is
in accordance with the
therefore appropriate to renew,
terms of Article 19(2) of Directive 2003/96/EC,
the
authorisation for Sweden to apply a reduced rate of
taxation to electricity for consumption in the north of
Sweden, until 31 December 2011.

L 199/20

EN

Official Journal of the European Union

21.7.2006

(7)

should be ensured that

the authorisation under
It
Decision 2005/231/EC, granted for similar reasons but
for a short period, continues to apply, without creating a
gap between the expiry of that Decision and the taking
effect of this Decision.

(8)

Decision 2005/231/EC should therefore be amended
accordingly,

Article 2

This Decision shall apply from 1 January 2006.

Article 3

This Decision is addressed to the Kingdom of Sweden.

HAS ADOPTED THIS DECISION:

Done at Brussels, 11 July 2006.

Article 1

In Article 2 of Decision 2005/231/EC, the date ‘31 December
2005’ shall be replaced by the date ‘31 December 2011’.

For the Council
The President

E. HEINÄLUOMA