Private Households Pay EUR 937 Million in VAT on EEG Surcharge

Private German households will pay EUR 937 million in value added tax in 2012 on the EEG surcharge that is part of the electricity bill, the German Finance Ministry told The Left Party upon an interpellation. This is more than ten times the amount paid in 2003.

VAT on the EEG surcharge does not have to be paid by undertakings that are entitled to deduct input tax, the answer to the interpellation points out. With the EEG surcharge, consumers pay for the difference between the fixed feed-in tariffs paid pursuant to the Renewable Energy Sources Act (EEG) for renewable energy fed into the grids and the sale of the renewable energy at the EEX energy exchange by the transmission system operators (TSOs). Over the years, the EEG surcharge has risen to 3.592 ct/kWh in 2012 and is likey to rise further.

Unlike private households energy-intensive companies can also apply for a limitation of the EEG surcharge pursuant to Sections 40 to 44 EEG and get a grid fee exemption according to Section 19 para. 2 sent. 2 Electricity Grid Charges Ordinance (StromNEV). The remaining electricity customers have to make up for the lost grid fees by paying a surcharge that is added to the EEG surcharge they have to bear.

Katja Kipping, co-leader of The Left, demanded to return the VAT on the EEG surcharge to consumers. The money had to go into a fund for a social energy policy shift, she added, saying that her party wanted to introduce a scrapping bonus of EUR 100 for households that replace energy guzzling household appliances by  more efficient ones and wanted to set aside money for hardship cases, in which households were behind on payments of the electricity bills.

Sources: Neue Osnabrücker Zeitung;  Focus Online

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1 Response to “Private Households Pay EUR 937 Million in VAT on EEG Surcharge”


  • If the EEG surcharge were to be abolished, consumers would be richer, taxpayers would be richer, the Grid would be happier and actual electricity supply would be virtually unchanged (as the conventional plants are working, anyway). The tax collectors would be less happy, and there is a rule of thumb that says that once a tax is introduced it is almost impossible to repeal…

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