High energy prices are currently burdening private households and companies – and in view of the Ukraine war and the throttled gas supplies from Russia, the situation is likely to worsen. Federal Finance Minister Christian Lindner (FDP) therefore wants to relieve energy-intensive industry by several billion euros over the next two years. This comes from a paper from his ministry, which the Süddeutsche Zeitung present.
It is about the so-called peak equalization. Energy-intensive companies have been getting this since 2012; since 2013, however, only on the condition that they demonstrably reduce their energy consumption. In concrete terms, companies can have part of the energy or electricity taxes paid on heating fuel and electricity reimbursed by the state in a year. In addition to the peak compensation, there is also a general tax relief for the entire energy and electricity consumption of the companies that meet the conditions. Both regulations would actually expire at the end of the year. But Lindner wants to extend it for the years 2023 and 2024. Cost: almost 2.9 billion euros a year.
“It’s important to me not to leave energy-intensive industry alone,” the finance minister told the SZ. “In order to ensure our prosperity, energy-intensive production must continue to be possible in Germany.” Therefore, the companies concerned are guaranteed “planning security with regard to energy prices and significant financial relief”.
The relief is already shown in Lindner’s draft budget for 2023
According to the ministry, around 9,000 companies will benefit from peak compensation, and 33,000 from the general relief – for example in the chemical industry, plastics or metal production, glass and ceramics production or the automotive industry. In addition to industry, mining companies will also be relieved and companies in the energy and water supply or in the construction industry.
With regard to the electricity tax, the Ministry assumes that the state will lose 1.5 billion euros annually for the peak balance; another billion will be added for the general relief. In the case of the energy tax, it is 180 million euros for peak compensation and 177 million for general relief. The ministry’s paper shows that these shortfalls in revenue were already anticipated in the recently updated tax estimate – because the regulations have also been extended in the past.
In Lindner’s draft budget for 2023, the relief is also already shown. In addition to the almost 2.9 billion for the peak equalization and the general tax relief for energy and electricity consumption, another budget relief is planned: for certain energy-intensive processes and procedures such as glass, concrete or cement production or metal products. For this, a reduction in income of 1.4 billion euros is planned – making a total of 4.3 billion euros a year in relief for energy-intensive industry.
In order to put his plan into practice, Lindner now wants to present a regulation for the two-year extension of the relief regulations in the short term. The legislative process will “be completed in good time,” the paper says. At the end of the year, the “subsidy exemption notice” should also be sent to the EU – the relief is state aid that has to be approved by Brussels.