EU accuses Germany of renewables subsidies scam; may bill Berlin up to €9 billion

"In an internal statement on the grid charges, the legal service of the European Commission noted last October that “German lawmakers are deliberately favoring certain energy-intensive companies, which threatens to distort competition and is apt to obstruct trade between member states.

Consequently, a few weeks ago, the Competition Commission introduced formal proceedings against Germany, which it suspects of providing “inadmissible subsidies.” In a first step, the case revolves around company exemptions from grid charges, Oettinger told his small audience in Brussels. This amounts to about €800 million in 2013. According to Oettinger, companies and the German government are likely to see sanctions from Brussels this year.

How much could German industry be hit for this? Tim Worstall suggests up to 9 billion euros. If this happens reforming Germany’s renewable subsidies will be even more of a nightmare. Getting rid of the exemptions for industry appears, on balance, to be the right thing. (A rare thing I can agree with the German Green party on). However, if the EU goes hard and tries to reclaim all prior exemptions then political pressure to cut the subsidies will grow even stronger."

http://theenergycollective.com/robertwilson190/232111/eu-may-make-german-industry-pay-renewables?utm_source=feedburner&utm_medium=feed&utm_campaign=The+Energy+Collective+%28all+posts%29