Council Implementing Decision (EU) 2024/831 of 4 March 2024 authorising Sweden to apply reduced excise duty rates on electricity consumed by households and service sector companies located in certain areas in the North of Sweden
Date: 2024-03-04
Institutions: Council of the European Union
Subjects: Middle Norrland (Sweden), North Middle Sweden, Sweden, Upper Norrland (Sweden), derogation from EU law, electrical energy, environmental tax, excise duty, household consumption, tax relief, tertiary sector




L_202400831EN.000101.fmx.xml












Official Journal of the European Union


EN
Series L













2024/831


6.3.2024







            COUNCIL IMPLEMENTING DECISION (EU) 2024/831
of 4 March 2024
         
authorising Sweden to apply reduced excise duty rates on electricity consumed by households and service sector companies located in certain areas in the North of Sweden


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 electricity (1), and in particular Article 19(1) thereof,


Having regard to the proposal from the European Commission,

Whereas:







(1)


Council Implementing Decision (EU) 2017/2409 (2) authorised Sweden to apply, until 31 December 2023, a reduced rate of excise duty to electricity consumed by households and service sector companies in certain areas in the North of Sweden pursuant to Article 19 of Directive 2003/96/EC.












(2)


By letter of 11 April 2023, Sweden requested authorisation to continue to apply a reduced rate of excise duty to electricity consumed by the same beneficiaries for an additional period of four years, that is from 1 January 2024 until 31 December 2027. The reduction is to be limited to SEK 96 per MWh. By letter of 10 October 2023, Sweden sent additional information and clarification.












(3)


In the areas concerned, the costs of heating are higher on average than in the rest of the country, due to the longer heating period. Reducing the costs of electricity for households and service sector companies in these areas therefore narrows the gap between overall costs of heating for consumers in the North of Sweden and those borne by consumers in the rest of the country. The measure therefore contributes to achieving regional and cohesion policy objectives. The tax reduction should not exceed what is necessary to compensate for the additional costs of heating for households and service sector companies in certain areas in the North of Sweden.












(4)


The reduced rates of taxation should be above the minimum rates laid down in Article 10 of Directive 2003/96/EC.












(5)


In view of the remote nature of the areas to which it applies and given that the tax reduction is limited to households and service sector companies, without exceeding the additional costs of heating in the North of Sweden, the measure is not expected to lead to significant distortions of competition or changes in trade between Member States.












(6)


Consequently, the measure is acceptable with regard to the proper functioning of the internal market and the need to ensure fair competition. It is also compatible with the Union’s health, environment, energy and transport policies.












(7)


In accordance with Article 19(2) of Directive 2003/96/EC, each authorisation granted under that provision is to be limited in time. In order to provide the households and service sector companies concerned with a sufficient degree of certainty, the authorisation should be granted for a period of four years, as requested. However, the authorisation should cease to apply from the date of application of a modified general system for the taxation of energy products and electricity adopted by the Council under Article 113 or any other relevant provision of the Treaty on the Functioning of the European Union, should such provisions become applicable during the period of the authorisation.












(8)


In order to avoid any disruption for the households and service sector companies concerned, it should be ensured that Sweden may continue to apply a reduced rate of excise duty to electricity consumed by the same beneficiaries without interruption. The authorisation requested should therefore be granted with effect from 1 January 2024, in order to seamlessly follow on from the prior arrangements under Implementing Decision (EU) 2017/2409. By providing for application as from a date prior to the entry into force of the special measure, legitimate expectations of the households and service sector companies concerned are respected, as the special measure does not encroach upon their rights and obligations.












(9)


This Decision is without prejudice to the application of the Union rules regarding State aid,





HAS ADOPTED THIS DECISION:



Article 1

1.   Sweden is hereby authorised to apply a reduced excise duty rate to electricity consumed by households and service sector companies situated in the municipalities listed in the Annex. The reduction from the standard national excise duty rate for electricity shall not exceed what is necessary to compensate for the extra heating costs due to the northern location, in comparison with the rest of Sweden, and shall not exceed SEK 96 per MWh.


2.   The reduced rates must comply with the requirements of Directive 2003/96/EC, and in particular with the minimum rates laid down in Article 10 thereof.



Article 2
This Decision shall apply from 1 January 2024 until 31 December 2027.


Article 3
This Decision is addressed to the Kingdom of Sweden.




Done at Brussels, 4 March 2024.


For the Council


The President

A. VERLINDEN
            





(1)  
            OJ L 283, 31.10.2003, p. 51.

(2)  Council Implementing Decision (EU) 2017/2409 of 18 December 2017 authorising Sweden to apply a reduced rate of excise duty on 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 (OJ L 342, 21.12.2017, p. 10).




ANNEX






Regions


Municipalities




Norrbottens län


All municipalities




Västerbottens län


All municipalities




Jämtlands län


All municipalities




Västernorrlands län


Sollefteå, Ånge, Örnsköldsvik




Gävleborgs län


Ljusdal




Dalarnas län


Malung-Sälen, Mora, Orsa, Älvdalen




Värmlands län


Torsby







ELI: http://data.europa.eu/eli/dec_impl/2024/831/oj
ISSN 1977-0677 (electronic edition)