Considerations on COM(2024)39 - Authorisation of 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 - Main contents
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| dossier | COM(2024)39 - Authorisation of Sweden to apply reduced excise duty rates on electricity consumed by households and service sector companies ... |
|---|---|
| document | COM(2024)39 |
| date | March 4, 2024 |
(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 4 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 clarifications.
(3) In the areas concerned, the costs of heating are on average higher 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 will 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 to 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 consumers concerned with a sufficient degree of certainty, the authorisation should be granted for a period of 4 years, as requested.
(8) It is important to ensure that the authorisation granted under Decision (EU) 2017/2409 continues to apply in order to avoid creating a vacuum between the expiry of that Decision and the date of application of this Decision.
(9) In order not to undermine future general developments of the existing legal framework, it is appropriate to provide that, should the Council, acting on the basis of Article 113, or any other relevant provision of the Treaty on the Functioning of the European Union, introduce, during the period of authorisation set out in this Decision, a modified general system for the taxation of energy products and electricity to which this authorisation would not be adapted, the authorisation should cease to apply on the day on which those general rules become applicable.
(10) This Decision is without prejudice to the application of the Union rules regarding State aid.