New information on the capping of taxes on electricity and energy – Secure your tax relief!

The production of confection in Germany is considered energy intensive. Legislators, however, already granted the companies an exemption for up to 90% of electricity and energy taxes in 1999 ("capping"). As a result of concerns

The production of confection in Germany is considered energy intensive. Legislators, however, already granted the companies an exemption for up to 90% of electricity and energy taxes in 1999 ("capping").

As a result of concerns based on European law against the German exemption provisions, this had to be redrafted in 2012. In doing so, in particular the additional requirement was adopted that the companies are obliged to operate an energy management system (in general in accordance with DIN EN ISO 50001).

The question of how this system is to be designed, how the proof is to be submitted, and in particular how the transition rules for 2013 and 2014 should be arranged was regulated in more detail in mid-2013 in the Capping Efficiency System Regulation. In the following, we would like to briefly inform you of the current item of correspondence from the German Federal Ministry of Economics and Technology, as well as the draft amendment of the Capping Efficiency System Regulation:

1. Federal Ministry of Economics and Technology correspondence

In circular letter dated October 30, 2014, the Federal Ministry of Economics and Technology clarified that proof of the introduction of the energy management system, contrary to previous statements, can still be submitted for the application year 2013 in 2014. In this case, the inspection by the certifying body, however, will not be performed on-site but rather based on documents. For the applicants this also means that they must submit an affirmation in lieu of oath along with the application for capping. This affirmation has to confirm that the requirements had already been met in application year 2013.

For application year 2014, the proof of the introduction of the system, on the other hand, must be submitted to the certifying body by the end of the application year, and the on-site inspection must also be performed in 2014. If this has occurred, the issuing of proof by the authority can take place even after the end of the application year.

2. Capping Efficiency System Regulation¹ Draft Amendment

The previous Capping Efficiency System Regulation included in some areas included unclear provisions in some areas, which in practice have repeatedly led to uncertainty in different administrative practices. the change is intended to clarify the requirements and therefore ensure uniform application. In addition, for small and medium-sized businesses, the provisions have been eased to make the provision of proof easier, for example it should be it will be sufficient if 95% of the total energy consumption is recorded. 

¹ Draft of the Federal Ministry for Economics and Energy on a Regulation for the Amendment of the Capping Efficiency System Regulation of September 10, 2014