Proposal for a COUNCIL IMPLEMENTING DECISION authorising Sweden to apply a reduced rate of electricity tax to electricity directly provided to vessels at berth in a port ('shore-side electricity') in accordance with Article 19 of Directive 2003/96/EC
Date: 2011-04-08
Institutions: European Commission
Subjects: Sweden, domestic market, electrical energy, fishing port, tax, tax exemption, tax system, vessel

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EUROPEAN COMMISSION 

Brussels, 8.4.2011 
COM(2011) 158 final 

2011/0067 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

authorising Sweden to apply a reduced rate of electricity tax to electricity directly 
provided to vessels at berth in a port ('shore-side electricity') in accordance with Article 
19 of Directive 2003/96/EC 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Taxation  of  energy  products  and  electricity  in  the  Union  is  governed  by  Council  Directive 
2003/96/EC1 (hereafter referred to as the “Energy Taxation Directive” or the “Directive”). 

Pursuant to Article 19(1) of the Directive, in addition to the provisions foreseen in particular 
in  its  Articles  5,  15  and  17,  the  Council,  acting  unanimously  on  a  proposal  from  the 
Commission, may authorise any Member State to introduce further exemptions or reductions 
in the level of taxation for specific policy considerations. 

The objective of this proposal is to allow Sweden to apply a reduced rate of electricity tax to 
electricity  directly  provided  to  vessels  at  berth  in  a  port  (hereafter  referred  to  as  'shore-side 
electricity'). This exemption is meant to give an economic incentive to the use of shore-side 
electricity in order to reduce air pollution in port cities. 

2 

THE REQUEST AND ITS GENERAL CONTEXT 

By  letter  dated  4  March  2010,  the  Swedish  authorities  informed  the  Commission  that  they 
intended  to  apply  a  reduced  rate  of  0,5  öre/kWh  of  electricity  tax  to  shore-side  electricity. 
Supplementary information was received from Sweden on 4 October 2010. 

Sweden has requested for the reduction to be granted for a period of six years, which is the 
maximum period indicated in Article 19(2) of the Directive. 

With  the  requested  measure  Sweden  wants  to  give  an  incentive  for  the  use  of  shore-side 
electricity which is considered a less polluting alternative to the generation of electricity on 
board the vessels lying at berth in a port. Currently shore-side electricity has to be taxed at the 
general rate of the electricity tax, which is 28 öre/kWh (18,5 öre/kWh in Northern Sweden). 
On  the  other  hand,  Member  States  have  to  exempt  electricity  generated  on  board  ships  for 
navigation  within  Community  waters  according  to  Article  14(1)(c)  of  the  Energy  Taxation 
Directive and may do so in the case of electricity produced on board ships for navigation on 
inland waterways according to Article 15(1)(f). 

Sweden  would  like  to  apply  a  reduced  rate  of  0,5  öre/kWh  to  shore-side  electricity, 
considering that by applying this tax rate the minimum rate of taxation for electricity as laid 
down in Directive 2003/96/EC is respected. The reduced rate of electricity taxation is to apply 
to  all  supplies  of  shore-side  electricity  of  at  least  380  volt  to  vessels  used  for  commercial 
shipping of at least 400 gross tonnage. The limit is considered appropriate so as to ensure that 
the absolute majority of vessels used in international traffic and larger vessels used in national 
traffic  will  be  covered  by  the  proposed  reduction.  These  are  the  vessels  considered  to  be 
responsible  for  the  largest  part  of  emissions  caused  by  the  running  of  auxiliary  motors  on 
board while berthed in ports. 

1 

Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for taxation 
of energy products and electricity, OJ L 283 of 31.10.2003 p. 51. 

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With the tax reduction Sweden wants to give an incentive for vessel operators to use shore-
side electricity in order to reduce airborne emissions and noise from vessels at berth as well as 
CO2 emissions. The application of a reduced tax rate would improve the competitive situation 
of  shore-side  electricity  relative  to  the  burning  of  bunker  fuels  on  board,  which  is  fully  tax 
exempt.  The  Swedish  authorities  note  that  facilities  for  the  use  of  shore-side  electricity 
currently exist in five Swedish ports (Stockholm, Gothenburg, Piteå, Helsingborg, Luleå) and 
that  preparations  for  the  use  of  shore-side  electricity  are  being  undertaken  in  a  number  of 
further  ports  in  Sweden.  Nevertheless,  the  number  of  vessels  availing  themselves  of  this 
option is currently limited. They indicate that under the assumption that 20% of the quantity 
of vessel fuel sold would be replaced by shore-side electricity, annual emission reductions of 
76 tonnes sulphur dioxide, 830 tonnes of nitric oxides, 8.4 tonnes of particulates and 42 000 
tonnes of carbon dioxide could be achieved. 

that 

Sweden  considers 
line  with  Commission  recommendation 
in 
2006/339/EC2  on  the  promotion  of  shore-side  electricity  for  use  by  ships  at  berth  in 
Community  ports  and  with 
the  Commission  Communication  "Strategic  goals  and 
recommendations for the EU's maritime transport policy until 2018" (COM(2009)8)3.  

this  measure 

is 

Arguments  of  the  Swedish  authorities  concerning  the  impact  of  the  measure  on  the 
internal market 

The Swedish authorities acknowledge that the measure constitutes state aid and that it favours 
owners of ships used for commercial shipping. They also claim that it is neutral with respect 
to competition between ship owners or operators since it is available to all ships at berth in 
Swedish  ports  independently  of  their  flag.  As  regards  the  effect  on  trade  between  Member 
States, Sweden assumes that the effect will be negligible as the choice of ports depends on the 
cargo's destination rather than on the reduced costs of berthing caused by the tax reduction for 
shore-side electricity. 

Existing provisions in the area of the proposal 

Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the  Community  framework 
for the taxation of energy products and electricity, in particular Articles 14(1)(c) and 15(1)(f). 

3. 

ASSESSMENT OF THE MEASURE UNDER ARTICLE 19 OF DIRECTIVE 2003/96/EC 

Specific policy considerations 

Article 19(1), first subparagraph, of the Directive reads as follows:  

"In addition to the provisions set out in the previous Articles, in particular in Articles 
5, 15 and 17, the Council, acting unanimously on a proposal from the Commission, 
may  authorise  any  Member  State  to  introduce  further  exemptions  or  reductions  for 
specific policy considerations." 

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Commission Reccomendation 2006/339/EC of 8 May 2006 on the promotion of shore-side electricity 
for us by ships at berth in Community ports (OJ L 125, 12.5.2006). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  –  Strategic  goals  and 
recommendations for the EU's maritime transport policy until 2018, COM (2009) 8 final. 

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By  means  of  the  tax  reduction  in  question  the  Swedish  authorities  pursue  the  objective  to 
promote an environmentally less harmful way for ships to satisfy their electricity needs while 
lying at berth in ports and thereby to improve local air quality. As Sweden has pointed out, the 
Commission  has  in  fact  already  recommended  the  use  of  shore-side  electricity  as  an 
alternative to the generation of electricity on board the vessels at berth and thereby recognised 
its  environmental  advantages4.  It  is  noted  that  electricity  supplied  to  vessels  at  berth  is 
currently taxed at 28 öre/kWh in Sweden (18,5 öre/kWh in Northern Sweden). The requested 
exemption would thus lead to an additional incentive for the use of this technology equal to 
27,5  öre/kWh,  or  29,83  €/MWh 5  (18  öre/kWh,  or  19,53  €/MWh  in  Northern  Sweden)  and 
therefore contribute to the stated policy objective.  

The Commission also notes that in Sweden the necessary on-shore infrastructure is already in 
place in several ports. In such a situation, reduced operational costs in the form of a lower end 
price for the electricity consumed can be an effective incentive for a more widespread use of 
existing installations. In so far as the measure is also intended to increase the number of ports 
offering  the  possibility  to  use  shore-side  electricity,  the  Commission  expects  that  additional 
policy  measures  promoting  the  built-up  of  the  on-shore  infrastructure  are  likely  to  be 
necessary  to  achieve  the  policy  objective  of  the  tax  exemption  in  question.  Overall,  at  the 
current state of development of shore-side electricity in Sweden the Commission agrees that 
the  application  of  a  significantly  reduced  tax  rate  could  act  as  an  important  signal  for  port 
authorities  and  ship  owners  alike  to  further  invest  in  the  technology,  especially  if  it  is 
followed up by accompanying measures promoting shore-side electricity, be it in the form of 
financial incentives or ultimately use obligations. In this context attention is drawn not only to 
the  fact  that  shore-side  electricity  is  already  used  in  a  number  of  ports,  but  also  to  the 
considerable  interest  that  was  manifested  by  stakeholders  in  reaction  to  the  public 
consultation  on  the  design  of  the  proposed  tax  reduction  conducted  by  the  Swedish 
authorities. 

As regards the nature of the policy objective pursued the Commission would point out that the 
promotion  of  shore-side  electricity  is  in  fact  a  common  policy  objective  that  should  be 
pursued  by  the  Union  as  a  whole.  This  is  stated  clearly  in  the  Commission  Communication 
COM(2007)575  on  an  integrated  maritime  policy  and  the  accompanying  Commission  staff 
working  paper6,  which  announce  that  this  objective  will  be  taken  up  in  the  context  of  a 
revision of Directive 2003/96/EC. However, the purpose of Article 19 is to react to specific 
circumstances  in  individual  Member  States  that  are  not  reflected  in  the  Directive  itself.  A 
derogation on the basis of Article 19 which pursues the policy objective of promoting shore-
side  electricity  can  therefore  only  be  granted  as  a  transitional  measure  before  this  objective 
has been addressed in the context of a revision of Directive 2003/96/EC. 

Consistency with the other policies and objectives of the Union 

The requested measure concerns mainly the EU's environmental policy. To the extent that it 
will help to reduce the burning of bunker fuels on board the vessels in ports the measure will 

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Cf. note 2 above. 
Based on the exchange rate on 1 October 2010, i.e. 9.2183 SEK = 1 €, OJ C 286 of 2.10.2010. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions – An Integrated Maritime Policy 
for the European Union of 10.10.2007, COM (2007) 575 final and Commission staff working document 
– Accompanying document to the Communication from the Commission to the European Parliament, 
the  Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions  –  An 
Integrated Maritime Policy for the European Union of 10.10.2007, SEC (2007) 1278. 

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in fact contribute to the objective of improving local air quality. The measure is also likely to 
lead to a reduction of CO2 emissions to the extent that the electricity mix from the onshore 
grid is less carbon intensive than the electricity produced on board by burning bunker fuels, 
due to higher system efficiency and the difference in input fuels used. In this context it can be 
noted that the average electricity mix in the relevant market area is considerably less carbon-
intensive than the EU average. Although the carbon intensity of additional electricity supplied 
is usually higher than the one of the average electricity mix and highly dependent on the time 
of day when the additional demand occurs, CO2 reductions resulting from the measure will 
remain relatively significant7.  

It has to be recalled at this point that one important reason for the unfavourable competitive 
position of shore-side electricity lies in the fact that the alternative, i.e. electricity produced on 
board the vessels while in maritime ports, currently enjoys a full net tax exemption: not only 
is  the  bunker  fuel  burnt  for  generating  the  electricity  exempt  from  taxation,  which 
corresponds to the normal position under Article 14(1)(a) of Directive 2003/96/EC, but also 
the electricity produced on board the vessels is itself exempt (cf. Article 14(1)(c) of Directive 
2003/96/EC). Although the latter exemption could as such be considered difficult to reconcile 
with the environmental objectives of the Union, it mirrors considerations of practicability. In 
fact,  taxation  of  the  electricity  produced  on  board  would  require  a  declaration  by  the  ship 
owner  -  often  established  in  a  third  country  -  or  operator  of  the  amount  of  electricity 
consumed. The declaration would  furthermore have to determine the share of the electricity 
consumed in the territorial waters of the Member State where the tax is due. It would create a 
huge  administrative  burden  for  ship-owners  to  have  to  make  such  declarations  for  every 
Member  States  whose  territorial  waters  are  concerned.  Under  these  circumstances  it  can  be 
justified  not  to  penalize  the  less-polluting  alternative  of  shore-side  electricity  by  allowing 
Sweden to apply a reduced rate of taxation. 

As  regards  electricity  consumed  by  vessels  at  berth  in  ports  along  inland  waterways,  and 
contrary to the situation obtaining in maritime ports, exemption of the electricity produced on 
board  is  merely  optional  for  Member  States  (Article  15(1)(f)).  Therefore,  no  legal  obstacle 
would  prevent  Member  States  from  treating  equally  shore-side  electricity  and  on-board 
generation in ports along inland waterways. However, the option offered by Article 15(1)(f) 
of  the  Directive  not  to  tax  electricity  generated  on  board  is  again  to  be  explained  by 
considerations of practicability on the part of the legislator and at the same time closely linked 
to  the  optional  tax  advantages  for  the  purposes  of  navigation  on  inland  waterways.  The 
majority  of  Member  States,  among  which  Sweden,  have  decided  not  to  tax  fuels  used  for 
these  purposes.  They  also  consider  it  impractical  to  tax  the  input  fuel  instead  of  taxing  the 
electricity [cf. Article 21(5), third subparagraph, of Directive 2003/96/EC] because this would 
suppose,  at  the  very  least,  a  separate  treatment  of  the  fuel  used  for  the  generation  of 
electricity.  In  fact,  in  deciding  whether  to  extend  the  tax  exemption  applicable  to  maritime 
shipping  to  fuels  used  for  navigation  on  inland  waterways,  Member  States  will  take  into 
consideration  a  number  of  aspects,  including  wider  objectives  of  national  transport  policy 
such  as  environmental  considerations,  which  may  lead  them  not  to  tax  fuels  used  for  these 
purposes.  

7 

The combined share of renewables and nuclear in the NordPool electricity mix was at 86.6% in 2008, 
cf.  http://www.nordpoolspot.com/reports/Production_split/.  However,  both  nuclear  and  hydropower, 
which  accounts  for  most  of  the  renewables  generation in the  Nordic  market,  are  mainly  used  as  base 
load whereas peak load is more carbon intensive on average. 

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It  is  therefore  considered  justified,  at  the  present  stage,  to  extend  the  possibility  to  exempt 
shore-side electricity to ports in inland waterways. 

Internal market and fair competition 

From  the  point  of  view  of  the  internal  market  and  fair  competition  the  measure  requested 
would reduce the existing distortion between two competing sources of electricity for boats at 
berth,  i.e.  on  board  generation  and  shore-side  electricity,  caused  by  the  tax  exemption  for 
bunker fuels.  

As  regards  competition  between  vessel  operators,  it  first  has  to  be  reiterated  that  there  are 
currently very few vessels which use shore-side electricity on a commercial basis. Significant 
distortions  in  competition  could  therefore  only  arise  between  vessels  benefitting  from  the 
measure requested by changing to shore-side electricity and others that would continue to use 
on-board generation. Although precise cost projections depend crucially on the development 
of  the  oil  price  and  are  therefore  very  difficult,  the  available  evidence  indicates  that  overall 
even  a  full  tax  exemption  would  in  most  cases  not  reduce  operational  costs  of  shore-side 
electricity  below  the  costs  of  on-board  generation8  and  would  therefore  not,  in  any  event, 
represent a significant competitive benefit on vessel operators using shore-side electricity as 
opposed to those using on-board generation. In the present case, a significant distortion of the 
above  mentioned  kind  can  all  the  less  be  expected  since  Sweden  will  respect  the  minimum 
level of taxation prescribed by Directive 2003/96/EC. Furthermore, Sweden intends to limit 
the  tax  advantage  to  vessels  with  a  gross  tonnage  of  at  least  400  as  well  as  to  supplies  of 
shore-side electricity of at least 380 volts in order to target the measure to those vessels with 
significant  on-board  generation  while  limiting  the  overall  number  of  beneficiaries.  As 
explained by the Swedish authorities, both threshold values have been set at a relatively low 
level in response to concerns by national associations that otherwise national vessels might be 
disadvantaged  as  against  non-Swedish  ones.  Conversely,  it  can  reasonably  be  assumed  that 
vessels that might be excluded from the tax benefit through the threshold values will rather be 
national than from other EU countries and that the threshold values will therefore in any case 
not  lead  to  a  more  advantageous  tax  treatment  of  national  economic  actors  over  their 
competitors from other EU Member States. 

Concerning competition between ports, the Swedish authorities have stated that they consider 
as  negligible  any  potential  impact  on  trade  between  Member  States  which  could  result  if 
vessels  alter  their  routes  because  of  the  possibility  to  consume  shore-side  electricity  at  a 
reduced tax rate. In a situation where, as stated above, the use of shore-side electricity is, at 
least in the short term, unlikely to become more economic than on-board generation in spite 
of  the  tax  reduction,  this  tax  reduction  for  shore-side  electricity  is  also  unlikely  to 
significantly  distort  competition  between  ports  by  inducing  vessels  to  change  their  itinerary 
according to the availability of this option. 

Finally,  it  can  be  added  that  the  timeframe  for  which  it  is  proposed  to  authorize  the 
application  of  a  reduced  tax  rate  is  sufficiently  short  to  make  it  unlikely  that  the  analysis 
conducted in the two preceding paragraphs will change before the date of expiry.  

8 

Cf.  European  Commission  Directorate  General  Environment,  Service  Contract  Ship  Emissions: 
Assignment, Abatement and Market-based Instruments, Task 2a – Shore-Side Electricity, August 2005, 
http://ec.europa.eu/environment/air/pdf/task2_shoreside.pdf.  The  cost  analysis  is  carried  out  for  the 
three ports of Gothenburg (Sweden), Juneau and Long Beach (USA). 

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Period of application of the measure and development of the EU framework on Energy 
Taxation 

In principle, the period of application of the derogation should be long enough in order not to 
discourage  port  operators  from  making  the  necessary  investments.  This  objective  has  to  be 
reconciled, though, with the need not to undermine future developments of the existing legal 
framework.  In  this  regard,  it  should  be  borne  in  mind  that  the  Commission  is  currently 
assessing a possible revision of Directive 2003/96/EC with a view to bringing it more closely 
in  line  with  the  objectives  of  energy  and  environment  policies  and  in  particular  the  climate 
change objectives for the period after 2013. A corresponding proposal could also address the 
issue  of  the  tax  treatment  of  shore-side  electricity.  Under  these  circumstances,  it  appears 
appropriate to grant the authorisation requested for a period of three years, subject however to 
the entry into application of general provisions in the matter, at a point in time earlier than the 
expiry thus foreseen. 

4. 

STATE AID RULES 

On  the  basis  of  the  relevant  exchange  rate  of  1  October  2010  as  published  in  the  Official 
Journal  of  the  European  Union9,  the  tax  rate  of  0,5  öre/kWh  envisaged  by  the  Swedish 
authorities  respects  the  minimum  level  of  taxation  pursuant  to  Article  10  of  Directive 
2003/96/EC.  The  measure  therefore  falls  under  the  so-called  General  Block  Exemption 
Regulation (Regulation (EC) No 800/2008)10 and is, by consequence, exempt from the prior 
notification requirement. 

5. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES  AND  IMPACT 
ASSESSMENT 

Consultation of interested parties 

This proposal is based on a request made by Sweden and concerns only this Member State.  

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

This proposal concerns an authorisation for an individual Member State upon its own request. 

9 

10 

The  exchange  rate  relevant  for  assessing  compliance  with  the  minimum  rates,  cf.  Article  13  (1)  of 
Directive 2003/96/EC, cf. also footnote 5 above. 
Commission  Regulation  (EC)  No  800/2008  of  6  August  2008  declaring  certain  categories  of  aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty (General block 
exemption Regulation), OJ L 214, 9.8.2008. 

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6. 

LEGAL ELEMENTS OF THE PROPOSAL 

The proposal aims at authorising Sweden to derogate from the general provisions of Council 
Directive 2003/96/EC and to apply a reduced rate of 0,5 öre/kWh electricity tax to electricity 
directly provided to vessels at berth in a port.  

Legal basis 

Article 19 of Council Directive 2003/96/EC. 

Subsidiarity principle 

The field of indirect taxation covered by Article 113 TFEU is not in itself within the exclusive 
competence of the European Union within the meaning of Article 3 TFEU. 

However,  the  exercise  by  Member  States  of  their  competences  in  this  field  is  strictly 
circumscribed  and  limited  by  existing  EU  law.  Pursuant  to  Article  19  of  Directive 
2003/96/EC, only the Council is empowered to authorise a Member State to introduce further 
exemptions  or  reductions  within  the  meaning  of  that  provision.  Member  States  cannot 
substitute themselves for the Council.  

The proposal therefore respects the principle of subsidiarity.  

Proportionality principle 

The proposal respects the principle of proportionality. The tax reduction does not exceed what 
is necessary to attain the objective in question (cf. the considerations on the Internal market 
and fair competition aspects, above). 

Choice of instruments 

Instrument(s) proposed: Council Implementing Decision. 

Article 19 of Directive 2003/96 makes provision for this type of measure only. 

7. 

BUDGETARY IMPLICATIONS  

The  measure  does  not  impose  any  financial  or  administrative  burden  on  the  Union.  The 
proposal therefore has no impact on the budget of the Union.  

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2011/0067 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

authorising Sweden to apply a reduced rate of electricity tax to electricity directly provided to 
vessels at berth in a port ('shore-side electricity') in accordance with Article 19 of Directive 
2003/96/EC 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having  regard  to  Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the  Community 
framework for the taxation of energy products and electricity11, and in particular Article 19 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

By  letter  of  4  March  2010,  Sweden  sought  the  authorisation  to  apply  a  reduced  rate  of 
electricity tax to electricity directly provided to vessels at berth in a port ('shore-side electricity') 
pursuant to Article 19 of Directive 2003/96/EC.  

(2)  With the tax reduction it intends to apply, Sweden aims at promoting a more widespread use of 
shore-side electricity as an environmentally less harmful way for ships to satisfy their electricity 
needs  while  lying  at  berth  in  ports  as  compared  to  the  burning  of  bunker  fuels  on  board  the 
vessels.  

(3) 

In so far as the use of shore-side electricity avoids emissions of air pollutants associated with 
the burning of bunker fuels on board the vessels at berth, it contributes to an improvement of 
local  air  quality  in  port  cities.  Under  the  specific  conditions  of  the  electricity  generation 
structure in the region concerned, i.e. the Nordic electricity market including Sweden, Denmark, 
Finland and Norway, the use of electricity from the onshore grid instead of electricity generated 
by burning bunker fuels on board is furthermore expected to avoid CO2 emissions. The measure 
is  therefore  expected  to  contribute  to  the  EU's  environmental,  health  and  climate  policy 
objectives. 

(4) 

Allowing  Sweden  to  apply  a  reduced  rate  of  electricity  taxation  to  shore-side  electricity  does 
not  go  beyond  what  is  necessary  to  achieve  the  above  mentioned  objective,  since  on-board 
generation will remain the more competitive alternative in most cases. For the same reason, and 
because  of  the  current  relatively  low  degree  of  market  penetration  of  the  technology,  the 

11 

OJ L 283, 31.10.2003, p. 51. 

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measure is unlikely to lead to significant distortions in competition during its lifetime and will 
thus not negatively affect the proper functioning of the internal market. 

(5) 

It follows from Article 19(2) of Directive 2003/96/EC that each authorisation granted under that 
provision must be strictly limited in time. Given the need for a period long enough in order not 
to  discourage  port  operators  from  making  the  necessary  investments,  but  also  the  need  not  to 
undermine  future  developments  of  the  existing  legal  framework,  it  is  appropriate  to  grant  the 
authorisation requested for a period of three years, subject however to the entry into application 
of general provisions in the matter, at a point in time earlier than the expiry thus foreseen,  

HAS ADOPTED THIS DECISION:  

Article 1 

Sweden  is  hereby  authorised  to  apply  a  reduced  rate  of  electricity  taxation  to  electricity  directly 
supplied to vessels berthed in ports, other than private pleasure craft, provided that the minimum levels 
of taxation pursuant to Article 10 of Directive 2003/96/EC are respected. 

Article 2 

This  Decision  shall  apply  from  the  20th  day  following  its  publication  in  the  Official  Journal  of  the 
European Union. It shall cease to apply three years thereafter. 

However, should the Council, acting on the basis of Article 113 TFEU, provide for general rules on tax 
advantages  for  shore-side  electricity,  this  Decision  shall  cease  to  apply  on  the  day  on  which  those 
general rules become applicable.  

Article 3 

This Decision is addressed to the Kingdom of Sweden. 

Done at Brussels, 

For the Council 
The President 

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