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The European Commission has today authorised the restriction of the CHP surcharge (surcharge under the Combined Heat and Power Act) for energy-intensive companies.

State Secretary Rainer Baake from the Federal Ministry for Economic Affairs and Energy said: “We greatly welcome today’s decision by the European Commission. Following intensive discussions with the European Commission, this provides the necessary legal certainty for the relevant companies. The authorisation means that the restrictions on the level of the CHP surcharge to be paid by energy-intensive companies can now be granted.”

In line with the special equalisation scheme of the Renewable Energy Sources Act, the Combined Heat and Power Act (CHP Act) provides that the CHP surcharge for energy-intensive companies facing international competition is restricted in line with the situation of the individual company. The German government had already implemented this in the Act amending the Renewable Energy Sources Act and the CHP Act of December 2016, and was waiting for the go-ahead from Brussels.

The decision by the European Commission also includes the final legal clarification of the reduced surcharges available from 2011 under the old CHP Act. This is most welcome, as it creates legal certainty for the companies.

Repayments will be made in line with an adjustment plan, which has also already been implemented in the CHP Act. Accordingly, only very minor repayments will have to be paid by a few companies, and only for 2016.

The authorisation by the European Commission will be published on its website in the near future, under case number SA.42393.